The British pound was stable against a softer U.S. dollar, a trend driven by the U.S. Treasury's expanded bond repurchase program which has boosted risk sentiment and pressured the greenback.
The MSCI Emerging Markets Currency Index reached a new all-time high, set for an eighth straight week of gains, as the U.S. dollar weakened amid rising Treasury yields and concerns over U.S. debt.
The British pound is poised to strengthen further, driven by a substantial yield premium over the euro and potential short-covering, according to a new UBS report. The bank forecasts the EUR/GBP exchange rate will drift toward 0.84, but flags UK political developments as a key risk.
India's foreign exchange reserves rose for the seventh straight week to a six-month peak of $716.9 billion, bolstered by strong dollar inflows from recent government measures aimed at improving the country's balance of payments.
Bank of America has advised clients to initiate a long position in the NZD/USD currency pair, citing a hawkish Reserve Bank of New Zealand and a shifting risk landscape that favors shorting the U.S. dollar.
Foreign exchange markets are anticipating a volatile week, with the yen facing pressure from rising bond yields while the Australian and New Zealand dollars show signs of strength ahead of key economic data releases.
An index of emerging market currencies reached a new all-time high, marking its eighth consecutive weekly gain, as a weakening U.S. dollar boosted risk-sensitive assets globally.
India's foreign exchange reserves rose for the seventh straight week to $716.9 billion, a six-month high, according to Reserve Bank of India data. The surge was driven by central bank policies aimed at attracting dollar inflows, which have added approximately $50 billion to reserves over the period.
Bank of America is advising clients to buy the New Zealand dollar against the U.S. dollar, forecasting two more rate hikes from the RBNZ and citing a shifting risk outlook for the greenback.
