The US Dollar Index (DXY) dropped to the fresh low since February late Tuesday, as softer US data joins downbeat fundamentals to weigh on the DXY. 

Is the dominance of the US dollar in global trade also facing a significant challenge with emerging global economies, such as China and India, stepping forward to trade in their own currencies?

As the world's second largest economy, China has been steadily increasing the use of its currency in international transactions, with many countries, including the members of BRICS (Brazil, Russia, India, China, South Africa) bloc, now settling trade deals in yuan.

Bloomberg reported that China’s yuan has replaced the US dollar as the most traded currency in Russia, a year after the invasion of Ukraine led to a slew of Western sanctions against Moscow.

So, is the dollar dominance dissipating as China and Russia tilt towards a new currency bloc?

Willie Keng finds out from Phan Vee Leung, CIO, Trackrecord in this latest episode of the Bigger Picture.