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The latest forex coverage from the TrustFinance editorial desk.
Most Asian currencies traded in tight ranges, as safe-haven demand from escalating Middle East tensions counteracted the effects of a weaker U.S. dollar. The Japanese yen remained particularly vulnerable, hovering near a four-decade low despite renewed intervention warnings from Tokyo.
Strategists at BofA highlight rising oil prices, a more hawkish Federal Reserve than markets expect, and massive AI spending as three key themes that could drive the U.S. dollar higher.
Sterling fell against the dollar on Thursday, taking a breather from a recent surge that analysts attribute more to investors unwinding bearish bets than a change in the UK's economic outlook. The move came despite broad weakness in the U.S. dollar following soft inflation data.
Nigeria's government will publish a new 'scorecard' tracking poverty, income, and inequality to prove that President Bola Tinubu's controversial economic reforms are improving living standards for its citizens.
Bank of America forecasts the euro will depreciate against the Australian and New Zealand dollars, supported by a bullish outlook on industrial metals and agriculture despite headwinds from China.
Yields on eurozone government bonds, including German Bunds, pushed higher as escalating military conflict in the Middle East drove up oil prices and stoked fears of persistent inflation, potentially complicating the European Central Bank's policy path.
Most Asian currencies traded in narrow ranges, as the impact of a weaker U.S. dollar following soft inflation data was counteracted by investor caution over escalating geopolitical tensions in the Middle East. The South Korean won saw little benefit from a central bank rate hike, while the Chinese yuan held steady.
Treasury Secretary Scott Bessent announced the U.S. Mint will produce a commemorative $1 coin featuring President Donald Trump's image, a move that raises legal questions due to a law prohibiting the depiction of living persons on such coins.
The British pound gained against a broadly weaker U.S. dollar after a benign U.S. inflation report tempered expectations for an imminent Federal Reserve interest rate hike. The move was driven by dollar dynamics rather than UK-specific fundamentals.
