Taiwan's central bank confirmed it sold foreign currency in June to support its currency amid a strengthening U.S. dollar, causing its foreign exchange reserves to decline to $597.15 billion.
The Japanese yen weakened toward multi-decade lows against the dollar and pound, as currency traders grew more confident in testing Tokyo's resolve after officials refrained from market intervention.
The rand weakened against the U.S. dollar as escalating geopolitical tensions in the Middle East prompted a flight from riskier emerging-market assets, while oil prices surged.
The South African rand was little changed against the U.S. dollar on Monday, as investors awaited the release of Federal Reserve meeting minutes for clues on the future direction of U.S. interest rates.
The U.S. dollar weakened on Thursday, pressured by a retreat in crude oil prices and Federal Reserve meeting minutes that revealed a more balanced debate among policymakers on the future path of interest rates.
Deutsche Bank analysts report that yield will remain the primary driver of currency markets in 2026, supporting the performance of carry trades amid a stable global economy. The bank sees limited upside for the U.S. dollar and prefers the Swiss franc over the yen as a funding currency.
The South African rand gained against the U.S. dollar, supported by a more than 1% rise in gold prices. The currency's strength came despite new data showing a sharper-than-expected contraction in the country's manufacturing sector.
Analysts at UBS maintain a bearish outlook on the EUR/NOK pair, forecasting a steady appreciation for the Norwegian krone despite a recent pullback driven by oil prices and rate hike expectations.
U.S. Treasury and German Bund yields stabilized on Friday, holding near multi-week highs after their sharpest sell-off in months. The spike was triggered by renewed U.S.-Iran military clashes, which sent oil prices soaring and reignited inflation concerns.
