Every major currency worldwide has weakened against the U.S. dollar this year due to expectations about the Federal Reserve cutting its benchmark interest rate. High Fed rates prompt investment in the U.S., causing a global economic shift.
The dollar index is at levels last seen in the early 2000s, reflecting the U.S. currency's strength. Currencies like the yen, euro, Canadian dollar, and Chinese yuan have all depreciated significantly against the dollar.
The global impact signifies the U.S.'s central role in the world economy. Observers note how even currencies like the Chinese yuan have weakened, contradicting efforts to stabilize it, with the Fed holding significant influence.
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