In this article, we will take a look at the 10 Worst Performing Currencies of 2024.
At the start of last year, traders were pricing in the likelihood of more than six Fed rate decreases. With inflationary pressures persisting and the possibility of increased US tariffs under the President, however, prospects for monetary easing have been dampened. Prior to President Trump’s inauguration, global equities markets rose steadily, and the US currency rose by more than 6.0% as investors looked forward to pro-growth measures. As things stand, investors expect no more than two Fed rate cuts this year—a dramatic contrast to the aggressive lowering cycle many had expected in 2024.
US – China Trade Wars
The initial weeks of President Donald Trump’s second term have been defined by out-of-hours policy declarations in the United States, which have rocked markets across the globe and left traders scrambling to manage their holdings. For example, on February 9, Trump told reporters that he would put 25% tariffs on all steel and aluminum imports, causing certain European and Asian companies’ shares to drop erratically. Interestingly, these developments have led to the US dollar and offshore Chinese renminbi currency pair, known as USD/CNH, to emerge as the second-most traded currency futures contract in recent months, trailing only the dollar’s pairing with the euro.
On February 5, the People’s Bank of China fixed the rate at Rmb7.169 per dollar, similar to the level before the more than weeklong lunar new year break, while Chinese stock markets fell. During the market shutdown, Trump imposed an additional 10% tax on Chinese exports, and Beijing responded with tariffs on their own on US energy exports and other items. The Trump administration has long been a critic of China for keeping its currency shaky in order to increase export competitiveness. An example of this was seen during Trump’s first term, where Beijing allowed the renminbi to decline to soften the impact of US tariffs on exports.
In terms of equities, China also rocked US markets at the end of January, disrupting the artificial intelligence craze that had erupted following the announcement by DeepSeek, a Chinese startup, that it had constructed a large language model capable of competing with US AI behemoths at a fraction of the cost. According to President Donald Trump, DeepSeek’s publication “should be a wake-up call for our industries that we need to be laser-focused on competing to win.” Separately, Trump stated that he intends to impose new taxes on computer chips manufactured overseas, a strategy that might provide additional issues for the US technology industry, which is highly reliant on chip manufacturing in Asia.
Global Forex Outlook
According to an IMARC Group analysis, the global foreign exchange market was worth $861 billion in 2024. Looking ahead, IMARC Group forecasts that the market will reach $1,535 billion by 2033, growing at a CAGR of 6.64% between 2025 and 2033. To no one’s surprise, the United States dominates the Forex market, with the US dollar serving as the worldwide reserve currency. Not only does the currency account for over 88% of global forex transactions, making it the most traded currency in the world, but US economic indicators such as GDP growth, inflation, and employment data have a significant global impact on market sentiment and currency values, which is why economists around the world closely monitor every movement of the USD.
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Our Methodology
For our list of the 10 weakest currencies in the world in 2024, we analyzed each currency’s performance against the US dollar that year and ranked them according based on their depreciation. We also mentioned each currency’s intrinsic strength in relation to exchange rates. For the purpose of ranking, we utilized the most recent exchange rates for each currency against the US dollar.
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10. South African Rand
1 USD = 18.69 ZAR
2024 Returns: -3.7%
South Africa’s rand remained reasonably stable in 2024, with just minor losses. While several other currencies fell to all-time lows, the rand’s devaluation of just under 4% in 2024 stands out as relatively moderate. Notably, the rand fell sharply following US President Donald Trump’s election victory, but it quickly reversed direction. This see-saw of volatility with the rand lasted until the end of the year.
9. Euro
1 USD = 0.96 EUR
2024 Returns: -6.2%
Weak European economic growth is the primary reason the euro has struggled to regain its feet in recent years. The disparity in economic development on either side of the Atlantic Ocean has been striking, prompting money to flee the eurozone as the chances for asset returns appear better abroad. The Euro had another hard month following Trump’s election victory, plummeting to a four-month low of $1.07.