The Japanese Yen, the World's Hardest-Hit Currency Against the US Dollar in 2024

The US dollar strengthened against six major world currencies throughout 2024.

This dominance is reflected in the US Dollar Index (DXY), which reached 108.13 on Thursday (December 26, 2024), strengthening by 6.71% compared to the end of December 2023 (year-to-date/ytd).

Several factors contributed to the US dollar's strengthening, including central bank interest rates and investor behavior, which views the US dollar as a safe haven (a portfolio considered safe for investment during global financial market turmoil).

"It seems difficult to counter the US's privilege and its stronger dollar ahead of the new administration, whether due to The Fed's policies that may not be as loose as in September, or because of the ongoing challenges in developing and developed countries, which make the dollar a safe haven," said Marvin Loh, global market strategist at US financial services firm State Street, as reported by Reuters (December 18, 2024).

The Japanese yen (JPY) was the major world currency most affected by the US dollar's appreciation. On Thursday (December 26, 2024), the yen closed at 157.133 per US dollar, down 11.1% (ytd).

Next was the Swedish krona (SEK), traded at 11.019 per US dollar, weakening by 10.05% (ytd). This was followed by the Canadian dollar (CAD), which closed at 1.4354 per US dollar, weakening by 8.5% (ytd).

The Swiss franc (CHF) closed at 1.1118 US dollars, weakening by 6.23% (ytd). The euro (EUR) was at 1.040 US dollars, weakening by 6.04% (ytd), and the British pound sterling (GBP) at 1.2544 US dollars, weakening by 1.49% (ytd).

The strengthening US dollar trend against major world currencies could also impact the Indonesian Rupiah.

In recent weeks, the Rupiah has tended to weaken, trading above Rp16,000 per US dollar.