The US dollar is currently projecting a softening stance as compared to its global peers. President Donald Trump’s US tariffs have weakened the USD stance, promoting a fresh wave of de-dollarization to gain a hold of the market. This new wave is accompanied by a global ditching of the US dollar and assets while exploring alternative currencies as a hedge to secure one’s returns. In this process, certain currencies are winning against the greenback, delivering fresh blows to the American currency. Which currencies are topping the charts at the moment? Let’s find out.

Also Read: De-dollarization: SCO Nations Shift 92% of Trade Away from U.S. Dollar

US Dollar To Deteriorate Further

Former Soviet States Drop Dollar
Source: Watcher Guru

The US dollar is expected to project a low price valuation in the future. This decay may happen gradually due to the rising US tariff tensions and uncertainty that Trump’s policies are subduing the dollar’s winning streak.

“Tariff worries, recession risk, and U.S. fiscal policy concerns are weighing down markets,” strategists at BofA Global Research said in a note Thursday on rates and currencies. These worries may lead to a “summer of anxiety,” with the “overvalued” U.S. dollar likely continuing to broadly soften against other widely traded currencies, they said.

Analysts at the Maurits C. Boas Chair of International Economics shared a similar analysis, adding how the US dollar may lose its unique element in the coming years as currency dynamics continue to evolve globally.

“My thesis is that the U.S. dollar is about to get knocked down a couple of pegs. It will still be first in global finance because nothing is poised to fully replace it. The dollar just won’t be as unique as it once was.”

The era of de-dollarization is rapidly spreading as countries all over the world continue to ditch the US dollar for alternatives. China has recently dumped billions of dollars’ worth of US treasuries amid market uncertainty.

“Instead of buying more Treasuries, they’ve bought more gold. So if you look at US dollar debt as a percentage of all the reserves the Chinese own, Treasuries are a much smaller percentage of their total reserves than they once were, especially if you consider the appreciation of gold.” as shared by Peter Schiff.

Currencies Challenging The Greenback Lately

While the US dollar’s decay gives birth to the rising de-dollarization narratives, several Asian currencies have strengthened against the dollar as investors turn towards alternative assets to find respite.

“There are three major things driving not just Asia but global markets at the moment. Concerns about US debt and deficits. Trade deals, and the diversification away from the dollar.” Said Michael Wan, a senior currency analyst at MUFG.

These currencies are trending at the moment, actively competing with the USD. The currency list is given below:

  • Taiwanese Dollar
  • South Korean Won
  • Malaysian Ringgit
  • Singapore Dollar

Also Read: De-Dollarization Surge: 70+ Countries Abandoning the US Dollar

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