The U.S. dollar climbed near a one-week high as escalating geopolitical tensions in the Middle East prompted a flight to safety, weighing on most Asian currencies sensitive to rising oil prices. The New Zealand dollar and South Korean won were notable exceptions, supported by domestic factors.
A significant volume of foreign exchange options contracts are scheduled to expire on Tuesday, with notable concentrations in EUR/USD and USD/JPY that could influence spot prices around the New York cut.
Russia's central bank reported its gold holdings fell to 2,282 metric tons as of July 1, a decrease of 43.5 tons since the start of the year. The reduction in reserves occurs amid ongoing Western sanctions that block Moscow from selling gold on foreign markets.
The Canadian dollar fell against the U.S. dollar after official data showed a significant drop in June's inflation rate, leading markets to lower expectations for a Bank of Canada interest rate increase this year.
Analysts at Goldman Sachs project Turkish policymakers will shift focus from inflation to external balances, permitting the lira to weaken at a mid-20% annualized rate, a move that could slow disinflation and necessitate higher interest rates.
The Reserve Bank of India reported that its measures to attract foreign capital, aimed at supporting the struggling rupee, have drawn in $17.4 billion. The inflows come primarily from a program offering enhanced rates on overseas deposits.
The Reserve Bank of India announced that a series of foreign exchange measures introduced in June have successfully drawn in $20.7 billion, aimed at strengthening the country's balance of payments and supporting the Indian rupee.
The British pound edged higher on Monday, but the U.S. dollar remained well-supported as escalating geopolitical tensions in the Gulf sent Brent crude prices back above $90 a barrel.
The Indian rupee weakened to its lowest level in two months on Monday, pressured by crude oil prices trading near $90 a barrel amid geopolitical tensions in the Middle East.
