The US dollar, euro, yen, pound, yuan and emerging market currencies, explained through interest rates and trade flows.
The Chinese yuan gained about 4% against the dollar in 2026 to near 6.71 per dollar, as China's exports rose 14.6% and imports 22% through August.
Gold vs the US dollar in 2026: daily returns show a correlation of minus 0.55, and gold moved opposite the dollar on 73% of trading days through September 11.
Currency hedged ETFs beat unhedged funds by 8 to 22 points in the year to June 30, 2026 as the yen fell, but hedging lost in 2025 when the dollar weakened.
Central bank interest rates in 2026 range from 0% in Switzerland to 4.35% in Australia, and the currencies of the banks that hiked have gained the most against the dollar.
The Bank of England has held Bank Rate at 3.75% all year while UK inflation rose to 2.9% in July 2026, and the pound has firmed to about 1.35 dollars as a result.
Among emerging market currencies in 2026, the Mexican peso and Brazilian real gained about 5.6% against the dollar while the Indian rupee lost about 6%, tracking real interest rates.
Currency added about 2 points to Coca-Cola's second quarter revenue and 1 point to P&G's and J&J's, showing how the dollar shapes S&P 500 earnings in 2026.
USD/JPY reached 163.14 on July 22, 2026, even after the Bank of Japan raised its policy rate to 1.0% and Japan spent 11.7 trillion yen on intervention in the spring.
EUR/USD slipped from about 1.18 in April to 1.138 by July 13, 2026, as an energy shock lifted US inflation and kept the Fed on hold while the ECB began raising rates.
The Federal Reserve's broad US dollar index ended June 2026 at 120.92, up about 1% for the year, after a January low of 117.44 and a June high of 121.41.