The USD Index (DXY), a measure of the greenback’s strength against six major currencies, ended the trading session on June 13 at 98.14, a slight increase of 0.22 points from the previous day (June 12). However, compared to the same time the previous week (June 6), the index still witnessed a significant drop of 1.06 points. Earlier, during the June 12 session, DXY had plunged to 97.92, its lowest level in over three and a half years.
According to Reuters, the US dollar fell to its lowest level in three years as the country’s trade policies underwent rapid changes, sparking market concerns and raising expectations of a Federal Reserve rate cut, prompting capital outflows from the world’s largest economy.
Although the USD saw a slight gain on Friday due to safe-haven flows following Israel’s strike on Iran, it still recorded its biggest weekly loss in a month.
So far this year, the USD has lost nearly 10% of its value against a basket of major currencies (.DXY), causing unexpected volatility in global foreign exchange markets and impacting economic growth and inflation in many countries.
“There is clearly a strong wave of USD selling,” said Kit Juckes, Societe Generale’s chief FX strategist.
Nordic currencies are shining in the 2025 race, with the Swedish Krona surging 15% – the best performer so far this year against the USD in at least five decades. The Norwegian krone is also up 13%, its highest since 2008.
The euro, Swiss franc, and Japanese yen are among the major beneficiaries of the USD’s decline, appreciating by around 10% year-to-date.
Despite its recent recovery, the Japanese yen has depreciated by about 30% since the end of 2020. Japan is now struggling to balance the negative effects of a strong currency and the need to prove in trade negotiations with the US that it is not intentionally manipulating exchange rates for gain.
The Greenback’s Slippery Slope
The U.S. dollar remained on a downward trajectory in the week of June 9–13, 2025, despite a brief recovery following Israel’s strike on Iran.
“Global Currencies: A Slight Surge for the US Dollar and Yuan”
Vietcombank has listed the USD exchange rate at 25,863-26,223 VND/USD (buying-selling), an increase of 13 VND from yesterday’s morning session; meanwhile, BIDV has also raised their rates by 10 VND, now offering 25,855-26,215 VND/USD.
“Trade War Truce: Markets Await Outcome of Crucial Tariff Talks”
The Vietnamese Dong has demonstrated a remarkable resilience over the past month, bucking the trend of depreciation seen among many Asian currencies. Contrary to the performance of its regional peers, the Vietnamese currency maintained its stability. Should the ongoing trade, geopolitical, and monetary negotiations yield positive results, the pressure on exchange rates will ease, providing the State Bank of Vietnam with the necessary flexibility to sustain this stability in the long term.
Why the Russian Ruble is the World’s Strongest Currency in 2023
As the Russia-Ukraine conflict rages on, oil prices slump, and stringent Western sanctions continue to batter Russia’s economy, the Russian ruble has defied expectations and strengthened. This unexpected resilience of the ruble amidst economic turmoil demands further examination.
The Art of the Deal: How US-Japan Trade Talks Could Spur a Yen Rally
“Japan’s leading investment bank is now recommending a short position on the US dollar, encouraging investors to buy the yen instead. This strategic move is based on a careful analysis of the current market trends and the potential for a shift in global currency dynamics.”
This revised version maintains the core message while adding a touch of sophistication and a subtle emphasis on the bank’s strategic insight.
