INSUBCONTINENT EXCLUSIVE:
Despite a significant rise in US tariffs, most major global currencies have appreciated against the US dollar since the start of the year,
by an unweighted average of 4.5% since the end of 2024
Analysts believe that market concerns over the potential negative impact of higher tariffs on US economic growth have outweighed the
expected narrowing of the US trade deficit, leading to a weaker dollar.Emerging market currencies have shown more mixed trends
The Russian rouble has surged by around 30%, while the Brazilian real and Polish zloty have also posted strong gains
by 12% against the US dollar, while the euro and the Swiss franc have strengthened (by 2.7% and 7%, respectively)
Among emerging markets, the number of Turkish lira per dollar has broadly doubled, while the Korean won and rupiah have depreciated by 15%
from its peak in mid-2024
Effective Exchange Rates (REERs) offer a more stable view
deflationary pressures in the Chinese economy, the statement added.
