The Mexican peso has tumbled in recent weeks, erasing a 6% year-to-date gain and falling below 18 per dollar, as analysts point to profit-taking and a narrowing interest rate differential with the U.S.
U.S. Treasury yields pulled back from multi-year highs after the August PCE price index, the Federal Reserve's preferred inflation gauge, came in below expectations, tempering bets on an October interest rate hike.
The U.S. dollar eased from a nearly two-month high after dovish Fed commentary, but remains on track for its strongest monthly performance since June as investors await a key inflation report.
The British pound advanced against the U.S. dollar after official data showed the UK economy grew faster than expected in the second quarter, while the dollar's recent surge took a breather ahead of key U.S. economic reports.
The German bank maintains its EUR/USD forecast at 1.17, citing resilient global growth, fully priced-in Federal Reserve rate hikes, and absorbed energy shocks as key factors that will prevent the pair from breaking its support.
The Swiss National Bank purchased CHF 1.44 billion in foreign currency in Q2 2026, a significant slowdown from the previous quarter, indicating easing upward pressure on the franc.
The South African rand gained against the U.S. dollar on Wednesday as traders processed a series of key economic reports, including better-than-expected figures for private credit and the trade balance.
The Reserve Bank of India's net forward U.S. dollar liabilities surged to an all-time high of $200 billion in August, a sharp increase driven by the central bank's absorption of massive policy-induced dollar inflows.
The South African rand strengthened against the U.S. dollar on Wednesday after a series of economic reports showed faster-than-expected credit growth and a wider trade surplus for August.
