The British pound fell against the U.S. dollar on Thursday as heightened geopolitical risk in the Middle East provided modest safe-haven support for the greenback. The move came amid a quiet UK data calendar and as currency markets awaited the European Central Bank's latest policy decision.
JPMorgan has revised its year-end forecast for the Israeli shekel to 2.95 per U.S. dollar, down from 2.80, citing a more dovish central bank stance and a negative shift in global tech sector sentiment.
German two-year bond yields reached their highest point since mid-2024, driven by rising oil prices that are fueling inflation concerns and prompting markets to price in a more aggressive policy stance from the European Central Bank ahead of its meeting.
The South Korean won strengthened to its highest level since mid-May after second-quarter economic growth surpassed expectations, fueling speculation that the Bank of Korea will raise interest rates again in August.
The Japanese yen stabilized near its weakest level since 1986 amid speculation over central bank policy, while rising oil prices and divergent economic data led to mixed performance across other major Asian currencies.
The Canadian dollar appreciated against its U.S. counterpart, supported by a significant rally in crude oil prices amid Middle East tensions. However, gains were tempered by ongoing trade uncertainty and recent domestic inflation data.
Government bond yields across Europe remained elevated on Wednesday, with Germany's benchmark Bund near recent peaks, as a surge in crude oil prices fueled investor bets on a more hawkish stance from the European Central Bank.
The Hungarian forint depreciated against the euro after the country's central bank cut its benchmark interest rate by 25 basis points and indicated that further monetary easing is possible.
Analysts at Citi see the U.S. dollar strengthening to 165 Japanese yen, citing potential political pressure on the Bank of Japan and wavering government currency intervention policy as key drivers of yen weakness.
