The Japanese yen is on track for its best week in over a month as a sell-off in AI-related stocks fuels a flight to safety. The euro weakened amid concerns over French debt, while the U.S. dollar's gains were limited.
U.S. Treasury yields are heading for a third consecutive weekly decline as concerns over massive capital spending in the artificial intelligence sector trigger a flight to safe-haven assets. The benchmark 10-year yield pulled back from a multi-year high reached earlier in the month.
The British pound weakened on Friday as a global equity sell-off prompted a flight to safety, with investors favoring the Japanese yen and Swiss franc over the U.S. dollar. Weaker-than-expected UK retail sales data added to the pressure on sterling.
Analysts at Citi expect the dollar-yen pair to remain range-bound ahead of the Bank of Japan's policy decision, identifying ¥160 as a key level for potential intervention.
The Chinese yuan strengthened to its highest level since June 2022, while the U.S. dollar broadly declined as investors brace for a week packed with central bank policy decisions, led by the U.S. Federal Reserve.
The yield on India's longest-dated government bond reached an eight-year peak on Friday, as the spread between long-term and benchmark debt narrows amid broad market pressure.
Goldman Sachs has revised its outlook on the South Korean won, forecasting it will strengthen below the 1300 level against the U.S. dollar, citing the country's large trade surplus and recent comments from the Bank of Korea.
The Indian rupee posted its largest weekly gain in seven months, spurred by a series of government and central bank measures to defend the currency after it neared a record low against the U.S. dollar.
The British pound is on track to snap a seven-week losing streak against the U.S. dollar, supported by a pullback in the greenback as investors hedge against a potential correction in technology stocks.
