The British pound fell against a strengthening U.S. dollar, which found support from elevated energy prices and market expectations for further interest rate hikes by the Federal Reserve.
Goldman Sachs analysts see a potential move by Hungary's central bank to lower its inflation target as a positive catalyst for the forint, even as the bank is expected to pause its rate-cutting cycle.
The Canadian dollar weakened against its U.S. counterpart, crossing a key psychological threshold as declining crude oil prices and expectations for a more hawkish Federal Reserve weighed on the currency.
Dutch bank ING is maintaining its year-end EUR/USD price target at 1.160, even after raising its forecast for European Central Bank policy, citing parallel interest rate expectations for both the Fed and ECB.
The Japanese yen weakened on Tuesday amid growing speculation of currency intervention, while a firm U.S. dollar led to a mixed performance across other Asian foreign exchange markets.
The yuan strengthened against the U.S. dollar after the People's Bank of China set its daily reference rate at the strongest level since February 2023, signaling a tolerance for gradual appreciation.
Eurozone government bond yields rose on Tuesday as investors grew increasingly concerned about France's fiscal trajectory, sending the cost to insure French debt against default to its highest level since March 2020.
The Chinese yuan rose to its strongest level against the U.S. dollar in nearly three and a half years after the People's Bank of China set a firm daily reference rate, a move watched closely ahead of a U.S.-China presidential summit.
The Japanese yen hovered near recent lows as traders weighed the Bank of Japan's cautious policy stance against the Federal Reserve's hawkish outlook. Meanwhile, other Asian currencies traded in a narrow range as the U.S. dollar held steady after last week's gains.
