Section
The latest forex coverage from the TrustFinance editorial desk.
The South African rand traded flat against the U.S. dollar on Tuesday as the impact of falling gold prices and geopolitical risks was offset by investor focus on upcoming domestic inflation figures.
Bank of America strategists are advising clients to sell the Australian dollar against the New Zealand dollar, citing a growing divergence in monetary policy and structural migration trends.
Bank of America analysts forecast the Polish zloty will strengthen starting in the fourth quarter, citing an expected period of broad U.S. dollar weakness as the primary driver. The firm's outlook suggests interest rate differentials will have a limited impact on the currency.
Bank of America analysts expect the euro to weaken against the U.S. dollar through the third quarter, citing a hawkish Federal Reserve, robust U.S. economic data, and elevated oil prices.
The British pound fell against a strengthening U.S. dollar on Tuesday, as the greenback drew support from rising energy prices and higher long-term Treasury yields. Subdued U.K. economic data further weighed on sterling by diminishing expectations for a Bank of England rate hike.
Asian currencies traded in a narrow range as a weaker U.S. dollar, pressured by shifting Federal Reserve expectations, was offset by rising oil prices and geopolitical risks.
An index of Latin American currencies rose on Monday after weaker U.S. economic data led traders to reduce expectations for a September rate hike by the Federal Reserve. The move has increased the appeal of higher-yielding emerging market assets.
The Canadian dollar strengthened against its U.S. counterpart after Canada's annual inflation rate for July unexpectedly rose to 3%, bolstering the currency amid rising government bond yields.
German government bond yields stabilized near multi-day highs as expectations for a less aggressive Federal Reserve were offset by inflation concerns from elevated oil prices.
