Forex Traders Shift Focus to Asian Currencies as US Dollar Weakens
The US dollar's prolonged slump is reshaping global currency markets. The DXY index, tracking the greenback against major peers, has posted its worst performance in nearly a decade, failing to sustain momentum above the critical 100 level. Year-to-date declines exceeding 9% have traders abandoning traditional dollar positions in favor of Asian currencies.
Singapore's dollar, Thailand's baht, and Malaysia's ringgit are attracting unprecedented interest, with long positions reaching mid-June highs. The Chinese yuan has seen its strongest sustained rally in four years, supported by record trade surpluses exceeding $1 trillion through non-US channels. "This marks a structural shift in forex markets," notes MUFG's Lloyd Chan, highlighting waning confidence in dollar dominance.
