US DOLLAR STRENGTHENS 1.9% ON MONTHLY BASIS IN JANUARY AMID REDUCED PROBABILITY OF FEDERAL RATE CUT, NOTES RBI

Published on Feb 21, 2024 13:16

According to RBI�s Bulletin, the January 2024 Big Mac update shows that the US dollar has strengthened against almost all other currencies except the pound sterling and the Canadian dollar. The Japanese yen is undervalued by 43 per cent, the Indonesian rupiah by 47 per cent, the Hong Kong dollar by 51 per cent and the Taiwanese dollar by 58 per cent. Moreover, the US dollar strengthened by 1.9 per cent (m-o-m) in January as the reduced probability of rate cuts shored up demand. The US dollar continued to gain strength mid February, the central bank further stated.