Local Currency Trading Surges to Record Highs as USD Stumbles in 2025

Dollar dominance takes a hit as local currencies rally

Forget 'king dollar'—2025's FX markets are crowning new contenders. Emerging market currencies are posting record trade volumes while the greenback eats dust. Traders are pivoting fast, chasing yields where they can actually find them.

The silent coup in forex markets

No central bank announcements. No flashy policy shifts. Just a quiet, grinding reversal of decades-old trends. Capital flows are rerouting in real-time—and the smart money's already positioned.

Will the Fed's next move break or accelerate the trend? That's the billion-dollar question keeping hedge funds awake. Meanwhile, traditional finance clings to its dollar-denominated spreadsheets like they're holy scripture.

Local Currency Is Ruling the World

The US dollar has long been considered a leading global currency. However, with the USD’s constant weaponization and power struggles, the currency has now downsized significantly, with its purchasing power down to new lows. In the middle of it, the world is now favoring a new narrative, as a multipolar currency order threatens the dollar’s active status.

The latest development comes in the FORM of an LFTC network, spearheaded by banks in Thailand, Indonesia, and Malaysia. These countries have greenlighted a Local Currency Transaction Framework, with the Central Banks of these countries at the forefront of this change.

Moreover, major countries like India, Russia, the UAE, and Iran have now started to explore local currency aggressively, blaming the USD’s volatile nature as one of many reasons for this change.

US Dollar Continues To Fall: Demand Shock?

The US dollar has entered a lethal downward spiral, with the dollar’s demand declining globally. According to an analysis presented by the Global Markets Investor on X, the USD is falling despite the elevated treasury yields. The platform was quick to note how the US dollar’s weak global demand could be the main suspect behind this phenomenon.

The US Dollar continues to fall despite elevated Treasury yields:

This is an unusual phenomenon raising concerns about America's growing public debt problems.

There may not be enough demand for US assets, which weakens the US Dollar's role as the global reserve currency. pic.twitter.com/iZiViotgHC