The Reserve Bank of India's net forward dollar liabilities reached a historic $200 billion in August, up $63 billion from July, as the central bank absorbed massive policy-induced U.S. dollar inflows through currency swaps.
BCA Research has upgraded its three-month forecast for the U.S. Dollar Index to 105, citing superior U.S. economic performance driven by AI investment and a widening real interest rate advantage over G10 peers.
The Swiss National Bank's foreign exchange interventions decreased significantly in the second quarter, data showed Wednesday, though the central bank remains poised to counter excessive strength in the safe-haven currency.
Deutsche Bank analysts argue the euro will maintain its current trading range against the U.S. dollar, forecasting a year-end EUR/USD rate of 1.17 despite recent pressure on the pair.
The benchmark U.S. 10-year Treasury yield is holding near its highest level since 2007, poised for its largest monthly increase in two years as investors brace for persistent inflation and further central bank tightening.
The British pound strengthened after official data showed the UK economy grew faster than expected in the second quarter, while the U.S. dollar's recent rally paused ahead of key inflation and jobs data.
The Japanese yen strengthened on Wednesday following renewed warnings from officials against excessive depreciation, while the U.S. dollar held near a two-month high as investors awaited key inflation data. The Australian dollar weakened after inflation figures came in below expectations.
The Mexican peso has fallen past 18 per dollar, wiping out a 6% year-to-date gain in a matter of weeks. Analysts attribute the sell-off to profit-taking and a narrowing interest rate gap with the U.S.
Wells Fargo Investment Institute has raised its forecasts for the U.S. dollar against the euro and yen, anticipating that the Federal Reserve will continue to raise interest rates more aggressively than its global peers through 2027.
