Foreign exchange markets and global currency movements.
Coverage of currency markets including major pairs, central bank actions, interest-rate differentials, and geopolitical influences. This section highlights trends in FX markets that impact global trade, inflation, and cross-asset correlations.
624 total articles
The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.35% at its May meeting, the third consecutive increase and a level that matches a peak reached during the COVID-19 inflation period. The board approved the move by an 8-1 margin, reversing a narrowly split vote from March. The Australian dollar traded around $0.7163, down 0.…
Sterling crept slightly higher against the dollar on Tuesday but remained constrained by a firm US currency and elevated oil prices. The euro hovered near recent peaks as markets absorbed a more hawkish global central bank backdrop and the prospect of further Fed tightening, while energy market risks continue to shape currency valuations.
The Indian rupee dropped to an all-time low on Tuesday as renewed tensions in the Middle East lifted oil prices, keeping pressure on a nation that imports most of its crude. The dollar rose against the rupee, while 10-year government bond yields held steady. UBS analysts flagged the balance of payments as the core vulnerability and suggested policy…
Bank of America advised traders to remain tactically long the U.S. dollar against the British pound and the Canadian dollar, even as the currency has shown muted and rangebound trading. Strategists said recent weakness reflects a mix of temporary flows, suspected Japanese intervention and a market view that the Federal Reserve faces a high bar to r…
UBS strategists expect the British pound to progressively appreciate against the Swiss franc over the coming months, citing the Bank of England's continued tightening bias and an estimated roughly 4% interest-rate advantage for sterling. The bank projects GBP/CHF will reach 1.08 by September and remain at that level through March 2027, while a purc…
UBS Switzerland AG projects the euro-to-franc exchange rate will trade in a tight 0.91-0.93 band over the coming months, with 0.90 acting as robust support. The pair rebounded toward 0.92 after an initial decline linked to the US-Iran conflict, driven by renewed risk appetite and expectations for European Central Bank tightening while the Swiss Nat…
Asian foreign exchange markets were largely subdued on Tuesday as investors stayed on the sidelines amid renewed U.S.-Iran hostilities in the Strait of Hormuz and ahead of the Reserve Bank of Australia's policy announcement. Thin liquidity from regional holidays compounded muted activity. The RBA delivered a 25 basis-point hike to take the cash rat…
The Canadian dollar weakened against the U.S. dollar on Monday after an escalation of tensions between the United States and Iran in the Strait of Hormuz. The safe-haven U.S. dollar strengthened broadly while oil prices rose markedly; the Bank of Canada has said high oil could force consecutive rate hikes if it feeds inflation, and markets are pric…
Japan's finance minister cautioned against speculative behavior in foreign exchange markets after a short-lived appreciation of the yen prompted talk of government intervention. The minister cited a joint statement with the United States as a framework for decisive action and declined to provide further details. The recent market activity follows l…
Colombian financial markets reacted to the Banco de la República's unexpected decision to maintain its benchmark rate at 11.25%, with the peso falling 1.4% to 0.026961 against the U.S. dollar on Monday. The central bank's unanimous vote came despite elevated headline and core inflation and cited mixed signals from activity and inflation-expectation…
The South African rand weakened on Monday as a firmer U.S. dollar and a sharp rise in oil prices weighed on the currency. Market nerves were heightened by reports from Tehran about a naval encounter near the Strait of Hormuz, while domestic indicators such as manufacturing sentiment and vehicle sales offered some offsetting support.
Romania's foreign currency reserves dropped to 64.8 billion euros in April from 67 billion euros in March, the central bank said on Monday. The decline has coincided with political instability after the Social Democrats withdrew support for Prime Minister Ilie Bolojan, leaving him to lead a minority cabinet. A no-confidence motion backed by the lef…
The Japanese yen strengthened sharply against the U.S. dollar in Asian trade on Monday, prompting investor caution that Japanese authorities could again step in to support the currency after heavy intervention the prior week. The dollar fell to 156.22 yen, having touched a session low of 155.69, while trading volumes were light with Japan on holida…
The U.S. dollar held steady in Asian trading as regional currencies remained largely rangebound amid lingering uncertainty over the Middle East conflict and the future path of U.S. interest rates. Market volumes were muted because of holidays in Japan and Mainland China. The yen strengthened after reported intervention last week, and the Australian…
The yen steadied in early Asian trade, edging higher after volatile sessions tied to suspected government intervention last week. Markets are watching for further official action during Japan's Golden Week holiday and whether international partners will join any support efforts. Other major currencies and select cryptocurrencies posted small direct…
The Canadian dollar slipped modestly versus the U.S. dollar on Friday but preserved most of its gains for the week, marking a fourth consecutive weekly advance. Strength in Canada’s manufacturing sector and preliminary first-quarter growth above central bank expectations supported the currency, while oil prices and government bond yields moved lowe…
Bank of America says Japan's April 30 intervention in the currency market - selling dollars and buying yen - may be followed by another similar action within days, following historical patterns where authorities re-enter the market after a partial retracement. Analysts flag the 158-159 area as a likely trigger zone for renewed action, but caution t…
Citigroup strategists led by Dirk Willer and Adam Pickett recommended booking profits on a long yen versus dollar trade after Japan intervened in currency markets and pushed the yen below 157 per dollar. The position, opened on April 1 around 158 per dollar, returned roughly 0.17%. The team cited the prospect of sustained higher oil prices as a con…
A Bloomberg analysis suggests Japanese authorities spent roughly $34.5 billion on Thursday to prop up the yen after it slid to 160.72 per dollar, its weakest level since mid-2024, before reversing. If confirmed, the action would be the first market intervention since July 2024 and the first under the administration of Prime Minister Sanae Takaichi …
Sterling and the euro made small gains versus the dollar on Friday following what market participants described as suspected Japanese intervention in USD/JPY. ING analysts said the action resembled earlier operations aimed at capping the pair, but warned the dollar's pullback may prove temporary amid geopolitical and commodity price uncertainties.
The Japanese yen reversed earlier gains on Friday after reports that Tokyo intervened in currency markets when USD/JPY breached the 160 level. Softer-than-expected Tokyo consumer prices for April compounded pressure on the yen even as the Bank of Japan signaled a hawkish outlook. The dollar steadied following steep April losses, while broader Asian…
India's gold allocation in its foreign exchange reserves rose to 16.7% at end-March 2026 from 13.92% at end-September 2025, the Reserve Bank of India said in its half-yearly reserves management report. The change reflects higher gold valuation amid a slight fall in total foreign exchange reserves to $691.11 billion, and a continued repatriation of …
Sterling edged higher against the dollar after the Bank of England left its policy rate unchanged, with Governor Andrew Bailey describing the decision as an "active" hold. The central bank flagged upside inflation risks tied to energy prices and outlined scenarios - including a path that could require a "forceful" rate increase - should those press…
Bank of America launched a fresh valuation model for the Australian dollar that places fair value at 0.7240, about 1% above the spot rate of 0.7185 recorded on April 29, 2026, and reiterates a year-end target of 0.74. The bank's approach blends an export-price commodity index, the three-year yield spread and a copper-to-S&P 500 ratio intended to ca…
UBS now anticipates the Reserve Bank of Australia will lift its cash rate by 25 basis points at the May 5 meeting and deliver another hike in August, taking the terminal cash rate to 4.6%. The revision follows trimmed mean CPI data that marginally undershot expectations even as year-over-year inflation readings point to persistent price pressures. …
