BRICS countries are pushing currency diversification and local-currency settlements rather than an abrupt end to the US dollar’s role in global trade. Member nations are increasingly using currencies such as the rupee, ruble, yuan and dirham for bilateral trade to reduce transaction costs and strengthen financial cooperation.

BRICS focuses on diversification over de-dollarisation

At the 2026 BRICS Summit in New Delhi, India is pushing a pragmatic plan to reduce reliance on the US dollar through local-currency trade settlements and greater CBDC connectivity. Rather than pursuing a common BRICS currency, the focus is on building alternative payment mechanisms while strengthening financial cooperation among member nations.

BRICS summit 2026: India's approach to reducing dollar dependence

The U.S. Treasury has released a new $1 commemorative coin featuring President Donald Trump, marking the 250th anniversary of American independence. The gold-finish coin shows Trump on the front and the Great Seal of the United States on the reverse, with the dates “1776 ~ 2026.” The coin has sparked debate because living presidents have traditionally not appeared on U.S. currency.

US launches $1 Trump coin: First living person on US currency in 100 years 

Iraq has emerged as a crucial battleground in the broader U.S.-Iran economic confrontation. Despite its close ties with both Washington and Tehran, Baghdad remains heavily dependent on access to the U.S. dollar-based financial system. The United States has repeatedly used control over dollar flows, banking access and sanctions waivers as leverage to influence Iraqi policy, particularly regarding trade with Iran. As Washington expands pressure on Tehran, Iraq offers a glimpse into how America's dominance of the global financial system can shape the behavior of entire economies.


How Iraq became the ultimate test case for America's dollar power

The dollar remains the backbone of global finance, supported by powerful payment and settlement systems such as SWIFT, CHIPS, and Fedwire, which facilitate trillions of dollars in transactions every day. While countries including China, Russia and members of the BRICS bloc have sought alternatives, the greenback continues to dominate international trade, reserves and cross-border payments.


Can the world reduce its Dollar dependence? Iran sanctions revive the debate

US and Japan intervened together last week to carry out a rare, coordinated yen buying to halt the slide of the Japanese currency. The yen slid to a fresh 40-year low, hitting 163.73 against the dollar before rebounding to around 157-158. It's the first joint intervention since the 2011 earthquake to weaken the yen and the first joint operation to buy yen since 1998. The US sold its own holdings of Euros from the US Treasury Exchange Stabilisation Fund to buy the yen.&nbsp;“They have a weakening yen, and they wanted a little bit of help. And we’re always there for Japan,” said Trump in response to a reporter's question about joint intervention. After the announcement, the Japanese yen surged as much as 1.4 per cent to hit a nearly three-month high of 155.20 per US dollar, compounding a 3.8 per cent surge over the two previous sessions.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/supreme-court-pellet-gun-guidelines-jantar-mantar-protest-1785755099371">Supreme Court may frame guidelines on pellet gun use after Jantar Mantar protest</a><h2>Why its happening?</h2>The interest rate gap between Japan and the US has been driving the persistent weakness of the yen, hitting Japanese households with rising import costs. This has been a driving force for almost three decades, from 1999 to 2024, of yen carry trade, where Wall Street hedge funds would borrow yen and convert it to dollar-based assets and gain 4-5 per cent interest. This was the easiest way to make money. However, that gradually depreciated the value of the yen. It reached a peak in 2024 when the US Federal Reserve hiked rates aggressively, and Japan maintained neutral and negative interest rates. &nbsp;In July 2024, the Bank of Japan raised rates to 0.25 per cent, causing a sudden unwinding of the carry trade. &nbsp;The bigger worry for Washington and Tokyo is the bond market. Japan is the largest holder of US debt, roughly $1.15 trillion in US Treasuries. Analysts say the move aims to prevent spillovers from a sell-off in the yen and Japanese government bonds, which are adding pressure to already-rising US Treasury yields. US wants to prevent the weakening of the yen to prevent its trade deficit from widening. It does not want to risk Japan dumping US Treasuries, which will push the yields higher and widen its debt.However, analysts suggest the US and Japan are kicking the can down the road; they can't address this crisis without monetary policy change and fiscal discipline. The Japanese Ministry of Finance and the Bank of Japan are in a structural trap. If the BOJ raises interest rates to 2-3 per cent to match the US, the interest cost of Japan's debt will explode. Japan's public debt is over 200 per cent of its GDP; it will push the country into a debt spiral and freeze the domestic market. The most recent adjustment in June 2026 by the BOJ pushed the interest rate up to 1.00 per cent. But it is still negative compared to inflation, which is running near 2.5- 3 per cent. So investors are heavily penalised for holding cash in yen, and it forces them to move it into foreign dollar-based assets, keeping the pressure on the yen. Japan needs the Fed to slash interest rates to stabilise its yen, but Washington is too scared to do that amid a global energy crisis. So the US is keeping the yen on life support to keep its own economy from going into a debt spiral.&nbsp;

The US and Japan carried out a rare joint intervention to support the yen after it hit a 40-year low. Here's why the move matters and what comes next.

US and Japan intervened together last week to carry out a rare, coordinated yen buying to halt the slide of the Japanese currency. The yen slid to a fresh 40-year low, hitting 163.73 against the dollar before rebounding to around 157-158. It's the first joint intervention since the 2011 earthquake to weaken the yen and the first joint operation to buy yen since 1998. The US sold its own holdings of Euros from the US Treasury Exchange Stabilisation Fund to buy the yen. “They have a weakening yen, and they wanted a little bit of help. And we’re always there for Japan,” said Trump in response to a reporter's question about joint intervention. After the announcement, the Japanese yen surged as much as 1.4 per cent to hit a nearly three-month high of 155.20 per US dollar, compounding a 3.8 per cent surge over the two previous sessions. Also Read: Supreme Court may frame guidelines on pellet gun use after Jantar Mantar protest Why its happening? The interest rate gap between Japan and the US has been driving the persistent weakness of the yen, hitting Japanese households with rising import costs. This has been a driving force for almost three decades, from 1999 to 2024, of yen carry trade, where Wall Street hedge funds would borrow yen and convert it to dollar-based assets and gain 4-5 per cent interest. This was the easiest way to make money. However, that gradually depreciated the value of the yen. It reached a peak in 2024 when the US Federal Reserve hiked rates aggressively, and Japan maintained neutral and negative interest rates. In July 2024, the Bank of Japan raised rates to 0.25 per cent, causing a sudden unwinding of the carry trade. The bigger worry for Washington and Tokyo is the bond market. Japan is the largest holder of US debt, roughly $1.15 trillion in US Treasuries. Analysts say the move aims to prevent spillovers from a sell-off in the yen and Japanese government bonds, which are adding pressure to already-rising US Treasury yields. US wants to prevent the weakening of the yen to prevent its trade deficit from widening. It does not want to risk Japan dumping US Treasuries, which will push the yields higher and widen its debt. However, analysts suggest the US and Japan are kicking the can down the road; they can't address this crisis without monetary policy change and fiscal discipline. The Japanese Ministry of Finance and the Bank of Japan are in a structural trap. If the BOJ raises interest rates to 2-3 per cent to match the US, the interest cost of Japan's debt will explode. Japan's public debt is over 200 per cent of its GDP; it will push the country into a debt spiral and freeze the domestic market. The most recent adjustment in June 2026 by the BOJ pushed the interest rate up to 1.00 per cent. But it is still negative compared to inflation, which is running near 2.5- 3 per cent. So investors are heavily penalised for holding cash in yen, and it forces them to move it into foreign dollar-based assets, keeping the pressure on the yen. Japan needs the Fed to slash interest rates to stabilise its yen, but Washington is too scared to do that amid a global energy crisis. So the US is keeping the yen on life support to keep its own economy from going into a debt spiral.

The US and Japan carried out a rare joint intervention to support the yen after it hit a 40-year low. Here's why the move matters and what comes next.

Why the US and Japan jointly intervened to support the yen

Markets are shifting into risk-off mode. Crude oil surged over 5% as tensions and supply fears pushed prices up, triggering fresh demand for the US dollar. The dollar is now trading at a one-week high on safe haven demand, which took the shine off gold and silver. Global equities faced selling pressure as investors moved away from risk.

Crude oil jumps 5% | Dollar hits 1-week high as gold & stocks fall

US inflation hits 4.2%, mortgage rates near 7% and purchasing power down is about 20% since 2020. The data draws an uncomfortable parallel to America's worst economic decade.


America's Inflation Trap Tightens Again

The US Dollar is back in favour. And in a big way. Speculative bets on the dollar are surging.

Dollar Bets Hit 9-Month High: Why Now

Several Asian currencies have weakened significantly against the U.S. dollar over the past two years, with some hitting record lows. This data-driven breakdown explores which currencies fell the most and what it means for regional economies, trade balances, and inflation pressures across Asia.


Asian Currencies Over 2 Years: Dollar Strength & FX Breakdown

The global financial landscape is shifting as the Chinese Yuan gains strength against the US dollar, hitting a near three-year high. Analysts say currency markets are becoming a new battleground between the US and China, with strategic moves impacting global trade and economic power. While the dollar remains dominant, the yuan’s rise signals a slow but significant shift in global financial dynamics.


Chinese Yuan Surges As Currency War Between US And China Heats Up

U.S. President Donald Trump said that his administration is considering a currency swap agreement with UAE. This comes as the ongoing Iran war continues to rattle global oil markets and regional economies. 


Mightly Dollar Bows Before Chinese Yuan in UAE

The dollar is heading for its strongest monthly performance since October 2024, driven by the Middle East conflicts, which have disrupted energy markets, unsettled economic outlooks, and pushed investors towards the leading reserve currency of the world. The US position as the top global oil producer has further strengthened the dollar amid a rise in energy prices and weakening global growth expectations.&nbsp;“The dollar rallied as a safe haven bid on weakening global growth expectations,” said Noah Buffam, strategist at CIBC Capital Markets, Bloomberg reported. Since the disruption to global energy markets, investors have favoured the dollar, particularly the closure of the Strait of Hormuz, which highlighted the dependence on oil and natural gas imports of Europe and Japan.<h3>Forecasts of the US currency</h3>Traders, positioned for dollar weakness before the war, quickly reversed course. They now hold over $7 billion in bullish bets in the derivatives market, marking the highest since December. Some Wall Street banks that include JPMorgan Chase &amp; Co. and Goldman Sachs Group Inc., which had a small view of the dollar heading into the year, are now reconsidering their stance on the US currency. However, volatility in global risk sentiment and news headlines continues to complicate forecasts exceedingly.&nbsp;Amid speculations of the Federal Reserve cutting interest rates this year has now foundered as updated inflationary fears drive traders to reconsider. Additionally, the risk of a rising dollar dominates the outlook into year-end in the options market. “The dollar’s haven virtues have revived since the start of the Iran war as it quickly became clear this wasn’t a local conflict with fading FX impact. Dollar bulls can lean on elevated risk aversion, though the price action has underwhelmed so far, which is consistent with our view that the US’ unpredictable geopolitical stance boosts the case for diversification strategies," Bloomberg Intelligence confirmed.&nbsp;Also read: <a href="https://www.wionews.com/world/as-us-iran-war-escalates-red-sea-cable-threat-raises-fear-of-internet-disruption-in-india-1774877905277">As US-Iran war escalates, Red Sea cable threat raises fear of internet disruption in India</a>

Some Wall Street banks, including JPMorgan Chase & Co. and Goldman Sachs Group Inc., which had a small view of the dollar heading into the year, are now reconsidering their stance on the US currency. 

The dollar is heading for its strongest monthly performance since October 2024, driven by the Middle East conflicts, which have disrupted energy markets, unsettled economic outlooks, and pushed investors towards the leading reserve currency of the world. The US position as the top global oil producer has further strengthened the dollar amid a rise in energy prices and weakening global growth expectations. “The dollar rallied as a safe haven bid on weakening global growth expectations,” said Noah Buffam, strategist at CIBC Capital Markets, Bloomberg reported. Since the disruption to global energy markets, investors have favoured the dollar, particularly the closure of the Strait of Hormuz, which highlighted the dependence on oil and natural gas imports of Europe and Japan. Forecasts of the US currency Traders, positioned for dollar weakness before the war, quickly reversed course. They now hold over $7 billion in bullish bets in the derivatives market, marking the highest since December. Some Wall Street banks that include JPMorgan Chase & Co. and Goldman Sachs Group Inc., which had a small view of the dollar heading into the year, are now reconsidering their stance on the US currency. However, volatility in global risk sentiment and news headlines continues to complicate forecasts exceedingly. Amid speculations of the Federal Reserve cutting interest rates this year has now foundered as updated inflationary fears drive traders to reconsider. Additionally, the risk of a rising dollar dominates the outlook into year-end in the options market. “The dollar’s haven virtues have revived since the start of the Iran war as it quickly became clear this wasn’t a local conflict with fading FX impact. Dollar bulls can lean on elevated risk aversion, though the price action has underwhelmed so far, which is consistent with our view that the US’ unpredictable geopolitical stance boosts the case for diversification strategies," Bloomberg Intelligence confirmed. Also read: As US-Iran war escalates, Red Sea cable threat raises fear of internet disruption in India

Some Wall Street banks, including JPMorgan Chase &amp; Co. and Goldman Sachs Group Inc., which had a small view of the dollar heading into the year, are now reconsidering their stance on the US currency.&nbsp;

Dollar climbs to strongest month since October 2024 as West Asia war shakes global markets

The US dollar remains in strong demand as tensions in West Asia show no signs of easing, with markets bracing for further escalation. The absence of a diplomatic breakthrough over the weekend has kept financial markets on edge.

Investors are flocking to the dollar as a safe-haven asset, putting pressure on global currencies. In response, US trading partners are weighing options including rate hikes, market intervention and regulatory steps to stabilise their currencies.

The continued uncertainty is driving volatility across forex markets, with policymakers closely monitoring developments.

Dollar Surges As West Asia Crisis Fuels Demand, Global Currencies Under Pressure | Business Watch

Is the global economy slowly moving away from the dominance of the United States Dollar? The ongoing tensions involving Iran, the United States, and other geopolitical shifts are accelerating discussions around de-dollarisation in global energy trade.

Countries are increasingly settling oil transactions in alternative currencies such as the Chinese Yuan, Russian Ruble, and Indian Rupee. This shift could reshape how global commodities are priced and traded.

What Iran War Means For The Declining Dollar Dominance

The Indian Rupee’s fall is not a short-term event; it's a long-term trend now hitting a fresh extreme. From near parity in 1947, the Rupee moved to 4.76 Rupees in the 1950s, weakened to around 24 Rupees during the 1991 crisis, and crossed 60 rupees in 2013.

India Rupee Slide: From 1947 to 2026 

China’s currency has climbed to its strongest level against the US Dollar in nearly three years.


China Pushes for Multi-polar Currency Order

Russia has publicly disclosed the scale of its cryptocurrency activity. The finance ministry estimates that crypto transactions total around 50 billion rubles per day, or roughly 650 million dollars. That implies annual turnover exceeding 130 billion dollars, with much of the activity occurring outside regulated channels.


Russia Embraces Crypto to Evade Sanctions 

The Indian rupee continues to trade under pressure against the US dollar in February 2026, hovering around the 90 rupees per dollar mark.


Dollar Slides Against Euro, Yen; Rupee Still Fragile

A new report suggests climate change is imposing a high cost on the global economy. According to a ficci-ey survey, every minute of inaction now results in losses exceeding $250,000. That translates into nearly 16 million Dollars every hour.


Climate Change Now Costs $250,000 Every Minute

On Wednesday, treasury secretary Scott Bessent said a strong dollar policy is something the U.S. Always had. He added that good policies will always bring in money. Those comments came a day after president trump shrugged off the recent decline in the dollar, prompting a broad base sell-off in the greenback.


Why Trump Is Letting The Dollar Slide, And What It Means For U.S. & Global Economy 

To challenge the Dollar's dominance as the global reserve currency, BRICS nations have initiated a digital payment system called 'bridge'. While the payment platform is still in its infancy, it is a start. In this next report, we decode how the BRICS nations' alternative payment system challenges the Western-controlled SWIFT system. Take a look.


BRICS Wage Silent Economic War Against Trump's Brinksmanship 

The U.S. dollar has recorded its weakest start to a year in half a century. After a sharp decline through 2025, the greenback has fallen against all major global currencies, ranking as the worst performer among 17 peers. Shifting interest rate expectations, slowing U.S. growth, and rising global diversification away from the dollar have added pressure, raising fresh questions about the currency’s long-term dominance.

2026 Marks Worst Start for Dollar in 50 Years

US stocks edged lower as investors remained cautious ahead of key US jobs data, with markets weighing inflation concerns and interest rate expectations. At the same time, former President Donald Trump hailed stock market gains for 2025, crediting policy expectations and investor confidence.

In currency markets, the US dollar hovered near two-month lows as traders assessed economic signals, Federal Reserve outlook, and global market pressures.

US Finance: The Dollar Hovers Near Two-Month Lows

The Indian Rupee has breached the 90-per-USD mark as economic pressures mount, signaling challenges for trade, imports, and inflation in India.
This video analyzes the reasons behind the currency’s decline, its impact on businesses and consumers, and expert insights into potential government responses.

Indian Rupee Falls Below 90/USD Amid Rising Economic Pressures

The U.S. dollar has surged against most major currencies, rising beyond what interest rate differentials can justify. Although the likelihood of a December Federal Reserve rate cut has decreased, analysts warn there are still downside risks for the greenback. This video explains what is driving the rally and why investors are becoming cautious.

Investors Bet on Downside Risks for Dollar

Donald Trump said that following his tariff threat countries began “dropping out of BRICS” and that they don't talk about replacing the US dollar anymore.


US President says 'BRICS was an attack on the Dollar' 

 Global debt hit a record high of $337.7 trillion at the end of the second quarter, driven by easing global financial conditions, a softer U.S. dollar and a more accommodative stance from major central banks, a quarterly report showed on Thursday.


Global debt surges $21 trillion in first half of 2025

The US dollar has been on a rough ride this year, falling more than eleven percent since January. The dollar may have steadied for now, but many investors see this as a pause, not a turnaround, warning the greenback could fall further.



Trump’s ‘America First’ Stance Undercuts Strong-Dollar Policy | WION

The US government on Thursday began distributing gross domestic product data on public blockchains, marking the latest Trump administration endorsement of the crypto industry.



Trump Crypto Push: US Adopts Blockchain for GDP Data Release | WION

Donald Trump’s tariff war escalates as new 50% tariffs come into effect, targeting key imports. India’s textile industry is now bracing for major disruptions and economic consequences. Here's how it could reshape global trade and impact Indian exporters.

Trump's tariffs on India: Rupee falls despite a weakening Dollar

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