The dollar continued to appreciate against other major currencies after the U.S. central bank raised interest rates again earlier this month. Meanwhile, major Asian stock market indexes fell sharply on Wednesday.

International Trade RMB fell to its lowest level since the data was first released in 2011.

China's local currency also reached its lowest point since 2008, the global financial crisis .

The dollar continued to appreciate against other major currencies after the U.S. central bank raised interest rates again earlier this month.

Meanwhile, major Asian stock market indexes fell sharply on Wednesday.

Japan benchmark day closed down 1.5%, while the South Korean comprehensive index closed down 2.4%. Hong Kong's Hang Seng Index fell 2.8%.

Chinese People's Bank of China has been trying to slow down the RMB's decline by increasing the cost of shorting the RMB. PBOC (PBOC) also cuts the amount of foreign currency that banks must hold.

Many investors regard the US dollar as a safe place to save money during difficult times.

This helps push up its value against other currencies, including pound—a record low against the dollar on Monday.

Also on Wednesday, the US dollar hit a 20-year high against a highly-watched group of major global currencies.

The decline of the RMB is another example of the strengthening of the US dollar, which leads to a weakening of the currency.

This is also about the completely different paths taken by China and the United States in dealing with domestic economic problems.

People's Bank of China has been relaxing interest rates to revive economic growth affected by the coronavirus lockdown, and Federal Reserve is taking active action in the opposite direction to try to control inflation.

Australia Federal Bank Head of International and Sustainable Economy Joseph Capulso told BBC that this disagreement is not entirely a problem.

He said that the depreciation of the RMB actually helps Chinese exporters because it will make their goods cheaper, thereby increasing demand.

The depreciation of the RMB has caused the currencies of other developed economies in the region to be weak, including the Australian dollar and Singapore dollar and the Korean won.

Last week, the Bank of Japan intervened for the first time since 1998 to support the yen after the yen weakened against the dollar.

Asian emerging markets are also fragile—because they sell raw materials and parts to Chinese factories, they are increasingly relying on the RMB.

Washington has accused China of deliberately devalued its currency in order to keep export prices cheap, while products imported from the United States are expensive.

Although the strong dollar has disturbed global markets, it is unlikely to stop Feder from continuing to raise interest rates.

Dimitri Zabelin of the London School of Economics’ Foreign Policy Think Tank said: “The strong dollar is serving the U.S. market.”

“This will be a consideration, but it won’t be as heavy as domestic concerns about inflation.”