The Colombian peso strengthened to its highest level in over a month after a central bank board member suggested interest rates would need to remain elevated for an extended period to combat inflation.
The U.S. dollar strengthened on Monday as violent protests in France weighed heavily on the euro, while a sell-off in the U.S. bond market provided additional support for the greenback.
The British pound gained against the U.S. dollar on Tuesday, a move attributed more to broad dollar consolidation than to underlying strength in the UK's mixed economic data.
The U.S. dollar weakened against major peers, pressured by a rally in the Japanese yen following a record government bond sale and a surge in the British pound on data that bolstered Bank of England rate hike expectations.
Short-term U.S. Treasury yields rose while long-term yields fell as investors sought the relative safety of U.S. debt amid a sharp sell-off in French bonds triggered by political turmoil.
The yield on India's 10-year benchmark government bond climbed six basis points to a high of 7.4530% on Wednesday, its highest level since March 2023. The move comes despite the central bank signaling its discomfort with rising rates.
The British pound strengthened against a broadly weaker U.S. dollar after UK inflation for September came in hotter than anticipated, reinforcing expectations for a near-term Bank of England interest rate increase.
The U.S. dollar saw a minor advance in subdued trading as investors looked ahead to a series of key central bank policy meetings next week, including from the Federal Reserve and Bank of Japan.
U.S. government bond yields fell as investor concerns over stretched AI valuations sparked a move into safer assets, while France's benchmark 10-year yield crossed the 5% threshold for the first time since 2002 amid domestic turmoil.
