The British pound fell against the U.S. dollar as investors sought safe-haven assets amid geopolitical tensions and awaited the Federal Reserve's interest rate decision later this week.
French government bond yields retreated from their highest levels since 2002 after Moody's affirmed the country's credit rating, though investor focus is now shifting to the European Central Bank's upcoming policy decision amid persistent fiscal concerns.
The British pound gained against a weakening U.S. dollar after UK economic data for August unexpectedly showed growth. The dollar's decline was attributed to concerns over debt in the AI sector, overriding recent hot inflation data.
The Canadian dollar gained against its U.S. counterpart on Thursday, even as a surprisingly high U.S. producer price index report intensified concerns about persistent inflation and further Federal Reserve tightening.
Argentina has suspended its domestic issuance of dollar-denominated bonds for the second straight month after yields surged past 12%, complicating its debt repayment strategy.
The U.S. dollar posted its first weekly loss in over a month as falling Treasury yields reduced its appeal, while Indonesian markets faced a sharp sell-off on a proposed downgrade from index provider MSCI.
U.S. Treasury yields edged higher, stabilizing after a flight-to-safety rally pushed borrowing costs to multi-week lows amid a tech sell-off and concerns over corporate debt in the AI sector.
Goldman Sachs has turned bullish on the South Korean won, predicting it will strengthen past the 1300 per U.S. dollar mark, citing a large trade surplus and supportive comments from the Bank of Korea.
Bank of America has reiterated its forecast for the EUR/USD exchange rate to reach 1.15 by the end of the year and 1.20 by late 2027, citing resilient US economic data and stronger-than-expected activity in the Eurozone.
