Strong dollar policy leads to depreciation of currencies in many countries

The U.S. "strong dollar policy" is the main cause for the substantial depreciation of currencies in many countries, especially those emerging economies, according to analysts.

The policy leads to the U.S. dollar appreciation, drawing capitals back from the emerging markets. This will put emerging economies as well as global economy at risk.

Several countries in Asia have been suffering from it, such as Japan, South Korea and Indonesia, analysts say.

The Japanese central bank on Friday maintained its policy rate unchanged.

The Bank of Japan (BOJ) decided to guide short-term interest rates in a range of zero and 0.1 percent, a month after it ended the negative interest rate policy in its first rate hike in 17 years.

The announcement weakened the country's currency against the U.S. dollar significantly.

According to a media report on Monday, the exchange rate of the yen against the U.S. dollar dropped sharply, hitting the lowest level in 34 years.

Since currency is the medium of exchange, its stability has played a crucial role in business, trade and livelihood. Especially under the circumstance of globalization, the substantial currency depreciation in a short period of time will cause severe impacts on nations.

In Japan, the depreciation has led to rising import costs and higher consumption spending. Some local analysts believe that prices of food and gasoline will grow again.

Since its food and energy highly rely on imports, South Korea has been suffering from high inflation due to the depreciation of its currency -- South Korean won.

Not only has it put more burden on people's livelihood, but also has triggered capital outflow as well as disturbance in financial market.

For countries like Indonesia and Vietnam which often have deficits, as well as high inflation rates and external debts, the depreciation of their currencies has made their repayment of debt and interests even more difficult, posing greater risks to their economic stability.

Strong dollar policy leads to depreciation of currencies in many countries

Israel's military operation in the southern Gaza Strip city of Rafah has caused a setback in the peace talks, resulting in a stalemate, said Qatar, a mediator between Israel and Hamas, on Tuesday.

Speaking at the opening ceremony of Qatar Economic Forum 2024 in Doha, Qatari Prime Minister Sheikh Mohammed pointed out that the fundamental difference between the two parties is over the release of hostages and the termination of the conflict.

"Actually, in the past few weeks, we have seen some momentum building, but unfortunately, things didn't move in the right direction. And right now, we are in a state of almost a stalemate. Of course, what happened with Rafah has set us backward a little bit," added Mohammed.

On the same day, the spokesman of Qatari Foreign Ministry, Majed Al-Ansari, told reporters at a media briefing that Qatar would keep working to resolve the situation. He criticized Israel for not having viable plan for how to end the conflict, which is one of the main contributors for the stalemate in the ceasefire negotiations. He also said that aid supplies should be allowed unrestricted access to the Strip.

At least 35,173 people had been killed and 79,061 wounded in Israeli attacks on Gaza since October 7, according to the health authorities in the enclave on Tuesday.

Nearly 450,000 people have been forcibly displaced from Rafah since May 6, the United Nations Relief and Works Agency for Palestine Refugees in the Near East said in a statement on Tuesday. Israeli tanks on the same day marched towards the center of Rafah, following hours of intense air and artillery bombardment on the city, a local source reported.

Talks over Gaza ceasefire at stalemate: Qatar PM