UBS analysts maintain their forecast for a weaker Swedish krona, citing that global interest rate dynamics and expected Federal Reserve tightening are overshadowing supportive domestic fundamentals.
Strategists at UBS highlight the Norwegian krone's appeal for carry trades, citing a hawkish Norges Bank and Norway's position as a key energy exporter amid rising prices.
The U.S. dollar climbed to a two-month peak, pressuring most Asian currencies, as rising Treasury yields and expectations of further Federal Reserve rate hikes bolstered the greenback. The Japanese yen weakened toward the closely watched 160-per-dollar level, renewing speculation of potential government intervention.
The yield on the 30-year U.S. Treasury bond surged to its highest level since 2004 amid a deepening market rout, driven by strong economic data, rising energy prices, and hawkish signals from the Federal Reserve.
The U.S. dollar extended its rally to a fourth day, reaching a two-month peak after robust economic data and a surge in Treasury yields fueled market expectations for another Federal Reserve interest rate hike.
The British pound declined on Thursday, approaching its lowest closing level since late June as a broad-based rally in the U.S. dollar continued, fueled by elevated Treasury yields and expectations for a hawkish Federal Reserve.
The Hungarian National Bank (MNB) has identified a sustained appreciation of the forint as a core element of its strategy to meet revised inflation targets, arguing the benefits for price stability outweigh potential impacts on growth.
Bank of America analysts project the euro will strengthen against the U.S. dollar to 1.15 by the end of 2026 and 1.20 by late 2027, citing an outlook for modest dollar weakness.
According to a Bank of America analysis, the National Bank of Hungary views currency appreciation as a key tool to achieve its inflation target, seeing its benefits for disinflation as outweighing risks to economic growth.
