Global Currency Market Divergence Under Pressure from the Decline of the US Dollar

JustAnotherWallet · 2026-02-13T20:17:01+00:00

Recently, global foreign exchange markets have experienced increased volatility, with the US dollar showing complex performance against multiple currencies. The Japanese yen has depreciated continuously due to political instability in Japan, with the USD/JPY reaching a high point. Commodity currencies such as the Australian dollar and New Zealand dollar are weak, and risk appetite has declined. The trends of developed market currencies are intricate, reflecting differing market assessments of each country's economy and politics.

JustAnotherWallet

2026-02-13 20:17:01

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The global foreign exchange market has recently experienced significant volatility, with the interactions between the US dollar and various currencies becoming more complex. According to RTHK reports, against the backdrop of upcoming elections in Japan, the international currency markets are showing a clear divergence. The US dollar index remains relatively stable, fluctuating around 97.65, with an increase of over 0.2%, but behind this stability lie substantial differences among different currency pairs. In this global currency rebalancing, the strength and weakness exhibited by the US dollar are worth noting.

Strong US dollar amid yen depreciation

Changes in Japan’s political landscape directly impact the yen’s performance. The yen has depreciated for four consecutive trading days, with the USD/JPY exchange rate strengthening to nearly a two-week high of 156.94 yen, approaching the key psychological level of 157 yen. This dollar appreciation reflects market caution regarding Japan’s political situation and also demonstrates the continued status of the dollar as a safe-haven currency.

Commodity currencies under pressure, multiple currencies decline

Commodity currencies have performed weakly in this adjustment. The Australian dollar against the US dollar fell below 0.7, declining about 0.4% during New York evening trading, indicating the relative weakness of this high-yield currency pair. The New Zealand dollar also underperformed, dropping over 0.7% and currently hovering near the key support level of 0.6. These two currencies, closely linked to commodities, declined together, suggesting a decrease in market risk appetite.

Complex movements among developed market currencies

Among major developed market currencies, there are also complex patterns beyond the US dollar’s decline. The Canadian dollar against the US dollar fell about 0.2%, with the USD/CAD rising above 1.366. The British pound also faced pressure, declining 0.3%, with the USD/GBP fluctuating around 1.365. In contrast, the euro has shown relative resilience, currently holding at 1.18. The differing performances of these major currencies indicate that, although the dollar remains generally stable, there are complex shifts in strength and weakness across different currency pairs, reflecting market assessments of each country’s economic outlook and political factors.

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