Ashish Kumar Chauhan, MD & CEO of NSE, delivered his insights on the dominance of US Dollar in the global markets, at a recent panel discussion in Singapore. During the event, he also discussed the changing role of international institutions, and how technology is redefining capitalism itself.
Addressing whether the US dollar will remain the world’s reserve currency, Chauhan was unconvinced that an alternative to the USD exists. “After World War II, the US meticulously positioned itself to replace the British pound as the global reserve currency. Today, no other country is ready to take on that role,” remarked Chauhan.
Chauhan argued that although China has significant economic power, it lacks the necessary financial transparency and openness to support a global reserve currency. He added that the US dollar will continue to hold its dominant position, by default rather than by design.
US Dollar Against Indian Rupee
The Indian rupee (INR) surged 10 paise to 86.71 against the US dollar in early trade on Tuesday, supported by positive domestic equities. Forex traders anticipated that the growing global trade concerns would restrict the upside for the INR due to their potential economic impact
On Monday, the Indian rupee had gained 24 paise to close at 86.81 against the US dollar. Meanwhile, other Asian currencies gained slightly as CNH rose to 7.2338, IDR was at 16395 and KRW at 1445.
Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, said that the fears that US President Donald Trump’s aggressive tariff policies could trigger a broader economic slowdown have undermined the USD.
Furthermore, the US dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.19% higher at 103.56.
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