Many Currencies Of The World Fall Against The US Dollar

Many currencies of the world Fall against the US Dollar. The condition of many currencies of the world including the Rupee and Euro is poor, know what is the reason for the strength of the dollar.

There is a continuous fall in the value of the Rupee against the US Dollar.

These days the rupee has reached close to 80 against the US dollar. But the rupee is not the only currency whose value is depreciating against the dollar.

Actually, these days all the major currencies of the world are in disrepair against the dollar.

If one examines the global money market data, it is found that the rupee is in a much better position as compared to other currencies against the greenback.

Emerging market currencies continued to fall against the dollar amid renewed geopolitical tensions in the wake of the Russo-Ukraine war.

Dollar buying has intensified in an atmosphere of insecurity created by the imposition of strict monetary policies by central banks across the world due to GDP worries volatility in crude oil prices and rising inflation amid fears of recession.

After liberalization, the world has become like a global village, so any movement in the world system is bound to have an impact on other emerging currencies including the rupee.

The Reserve Bank of India (RBI) has said in its Financial Stability Report that the position of the rupee is relatively better than other currencies.

Since the war broke out in Ukraine in late February, the RBI has opened up its forex reserves to prevent the rupee from falling.

Reserve Bank Deputy Governor, Michael D Patra has already said that the central bank will do everything possible to prevent any unforeseen fall in the value of the rupee.

What is the position against the dollar?

Talking about some of the world’s major currencies against the dollar, be it the euro or the yuan, the lira or the British pound, everyone’s condition seems to be in disarray.

Turkish lira.

Talking about the Turkish lira, there is a steady decline in the lira against the dollar. On Thursday, July 14, the value of the lira fell to 17.5 per dollar for the first time since December 2021.

The lira was priced around 8 against a US dollar in July 2021, remaining above 16 a year later.

Euro.

The position of the Euro, the currency of European countries standing at par against the dollar, is also not very good. This month, the euro has seen a tremendous decline against the dollar twice.

On Wednesday, July 13, the euro fell below par level against the dollar. This was the first time in nearly two decades that the euro had seen such a fall.

In July 2021, one dollar was equal to 0.84 euros. Whereas in July 2022 it has remained above 0.95 euros continuously.

British Pound.

On 15 July 2021, the price of one British Pound was US$ 1.38 which has come down to US$ 1.17 in July 2022.

This is the lowest level of the pound since March 2020. Sterling declined sharply in 2022 despite the Bank of England raising interest rates repeatedly.

Chinese Yuan.

One US dollar was equal to 6.46 Yuan (Renminbi) on 15 July 2021, which became 6.79 Yuan on 15 July 2022.

Earlier on May 10, 2022, the Chinese yuan had seen a big fall against the US dollar and it reached 6.7134.

Due to the strict lockdown due to the Zero Covid policy and the slowdown in the real estate market, the rate of economic growth in China has been badly affected, so the yuan is expected to remain under pressure.

Japanese yen.

The Japanese yen is also weakening against the US dollar. The yen fell to a 24-year record low of 136.45 per dollar on June 22, 2022.

In 2022, the yen has fallen by more than 18 percent against the greenback. On July 15, 2022, the dollar stood at 138.80 yen, compared to 109.98 yuan on the same day a year earlier.

Canadian dollar.

For the past one year, the Canadian dollar, which has been revolving around 1.28 against the US dollar, has also been hesitating continuously since June 14, 2022.

At the moment, its price has fallen to 1.32 for one US dollar.