All articles tagged with #currency
With U.S. debt approaching $40 trillion, former Dallas Fed President Robert Kaplan argues currency stability matters more than gains from a weaker dollar; the piece notes Trump’s praise of the dollar’s decline, the dollar’s reserve-status, and how debt levels shape Treasury demand amid shifting market sentiment.
The U.S. dollar slid to a four-year low per the ICE Dollar Index, pressured by tariff threats, calls to cut rates, and looming government shutdown fears. Investors are shifting toward hard assets like gold, while importing costs rise for U.S. firms. Although the dollar remains the global reserve currency, analysts warn it could fall further if policy uncertainty continues and a new Fed chair takes shape.
The U.S. dollar has fallen for about a year, with the dollar index down roughly 3.2% since Jan 16 and 10.4% from Inauguration Day, as markets weigh fiscal deficits, expected rate cuts, and signals of a retrenchment in U.S. global leadership under Trump. Meanwhile equities ride on growth and AI, while safe-haven assets such as gold and the Swiss franc rally, signaling a shift in currency dynamics even as Treasury officials stress a strong-dollar policy.
Analysts warn of an urgent U.S. dollar collapse scenario that could unleash volatility, with traders bracing for sharp price moves in gold and Bitcoin as markets seek hedges amid rising uncertainty and potential liquidity stressed scenarios.
The article argues that debt crises in advanced economies are more plausible than commonly thought: high public debt plus shocks can push yields higher, and even when central banks cap yields, currencies can depreciate, signaling ongoing, low‑grade crises across Japan, the UK, and parts of the euro area. For example, Japan’s yen falls as JGB yields rise despite BoJ caps, the UK sees rising gilt yields with a relatively stable pound, and Italy, Spain and France face growing debt pressures within a euro framework, though Germany's low debt provides some insulation. The piece concludes that debt distress is already unfolding in the G10 and could deepen.
The Venezuelan currency has sharply declined due to the country's economic struggles exacerbated by US sanctions, leading to a severe financial crisis.
Emerging-market stocks reached a near five-year high at the start of 2026, driven by optimism around AI developments in Asia and strong performances in technology shares, with regional currencies showing mixed movements amid global economic expectations.
The US dollar is on track for its worst year since 2017, declining about 8% due to Fed policy uncertainty and potential interest rate cuts, with investor sentiment heavily influenced by the upcoming Fed chair appointment and global rate differentials.
Bulgaria will adopt the euro as its official currency on January 1, 2026, becoming the 21st EU country to do so, leaving only six countries still using their own currencies within the EU.
Protests erupted across Iran after the country's currency hit a record low against the US dollar, leading to the resignation of the Central Bank head and widespread economic distress, including soaring inflation and rising prices, amid political and regional tensions.
Syria has introduced new banknotes following the end of Assad's regime, marking a significant step in its post-conflict economic reforms.
Iran's currency is rapidly deteriorating, leading to a severe economic crisis characterized by inflation and financial instability.
The head of Iran's Central Bank resigned amid protests in Tehran and other cities following the rial hitting a record low against the dollar, with traders and citizens rallying over economic instability, soaring inflation, and fears of hyperinflation, exacerbated by political tensions and international sanctions.
China has signaled a more tolerant stance towards a stronger renminbi, indicating potential shifts in its economic policy and impacting financial markets.
China has fixed its yuan at the strongest rate against the dollar in over a year, indicating a potential shift in currency policy or economic conditions.