By comparison, the US dollar has generally strengthened against the currencies of its trading partners since April-May 2018, and this is mirrored by the trend of the DXY index in a tight-knit fashion.9 Notably, the Chinese currency’s NEER depreciation is shallower than its depreciation against the US dollar on a bilateral basis. These trends suggest that the exchange rate dynamics involving this currency pair are more about the strength of the US dollar than the weakness of the Chinese yuan thus far. Among the region’s currencies, the rupee, the rupiah and the Myanmar kyat weakened most against the US dollar last year, although they have been on an uptrend since November-December 2018.