The US dollar continued its downward trend in Asian morning trade, leading to lower exchange rates for the AUD, NZD, EUR, GBP, CAD, CHF, and yen, albeit slightly. Major currency pairs such as AUD/USD, EUR/USD, GBP/USD, and NZD/USD hit 5-month lows, indicating a significant weakening of the US dollar. Additionally, the Japanese yen remains at 34-year lows, highlighting the persistent strength of the currency against the dollar.
San Francisco Federal Reserve President Daly commented on the situation, acknowledging the inevitability of the current trend. The lack of fresh news suggests that market forces are primarily driving the depreciation of the US dollar against other major currencies. As uncertainty surrounding the global economy persists, investors are likely seeking safe-haven currencies like the yen, leading to further declines in the US dollar’s value. Overall, the continued weakness of the US dollar against various currencies underscores the challenges faced by the US economy and financial markets.