Opinion: Continued strength in U.S. bond yields hampers gains in Bitcoin and gold
08/16 10:31
According to a observer, despite signs of cracks in the form of fluctuations in the legal currency of countries that are struggling, such as the global market, currencies such as Bitcoin and gold, which are considered safe havens, are still difficult to gain momentum.
On Monday, the exchange rate of the Russian ruble (RUB) against the US dollar depreciated to $102, the lowest level since March 2022, according to Jinse Finance. This decline has resulted in a cumulative decline of 33% since the beginning of the year and forced the Russian ruble to depreciate against the US dollar. The central bank raised interest rates from 8.5% to 12%, an emergency measure. Meanwhile, Argentina devalued its already weakened peso (ARS) by 18%, from 287 pesos per dollar last Friday to 350 pesos per dollar. The peso has fallen 98% this year.
Mitsubishi UFJ Bank said the latest drops in the ruble and Argentine peso represent early signs of pressure on the global financial market. Perhaps the continued strength of nominal and inflation-adjusted US government bond yields is one of the key factors behind the latest declines in the ruble and Argentine peso and the rise in the US dollar index, which is hindering the rise of Bitcoin and gold.
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