The dollar reigns as undisputed master. In the space of 24 hours, he silenced all his rivals. Gold, local currencies, oil… all have collapsed. A show of brutal force. The greenback displays its absolute supremacy. The markets are trembling in front of King Dollar, who has become dashing again.
Gold crushed by the Dollar, currencies stripped!
Gold was unable to do anything against the dollar. The precious relic collapsed under $2150 per ounce. The FED is staunchly maintaining its high rates, pending today’s meeting. US bond yields are soaring. Absolute favorite of investors, the dollar reaps all the profits.
Worst enemy of the USD, local currencies have also experienced humiliation. The Indian rupee, although arrogant at the start of the month, depreciated to 83 rupees per dollar. The greenback has trampled all its competitors without an ounce of scruple.
Raw materials on their knees
Crude oil and Brent suffered the same indignities this Wednesday. Both global benchmarks collapsed by around 1%. Brent at $86 per barrel, crude at only $81.
As for the global commodities market, it is entirely dressed in red under the rule of King Dollar. Gold, oil, gas… All strategic sectors suffered heavy losses. Investors count their wounds, stripped in a single day.
International reactions and consequences
Domination of the American dollar has not gone unnoticed on the international scene.
In Europe, where the euro is often seen as a counterweight to the dollar, investors are in shock. The single currency fell against the dollar, leading to a serious reassessment of financial strategies in the region.
In Asia, where many economies rely heavily on exports, the strength of the U.S. dollar is seen as a threat. Local currencies are already depreciating, which could have a negative impact on the region’s fragile economies.
The US dollar has sent a real warning to the rest of the world. By demolishing all his rivals in a few hours, he confirms his power. Currency traders are now certain that they must side with the winner. No metal, no currency, no raw material will resist the King Dollar for long. Its supremacy once again seems indisputable and uncontested. For how long ? No one can say. But one thing is certain: the greenback has returned to its former fierce arrogance.
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