Section
The latest forex coverage from the TrustFinance editorial desk.
The British pound held firm against a broadly stronger U.S. dollar, with surprisingly robust UK retail sales data providing support against a backdrop of rising Federal Reserve tightening expectations.
Bank of America analysts warn that Hong Kong's interbank market is vulnerable to a sharp rate spike if the Federal Reserve raises rates more than expected, potentially forcing HKMA intervention with a diminished liquidity buffer.
German bond yields remained near their highest levels since 2011 after a spike in oil prices above $100 a barrel fueled concerns about persistent inflation and prolonged ECB monetary tightening, threatening economic growth.
Most Asian currencies fell against a strengthening U.S. dollar as new American tariffs and oil prices above $100 a barrel revived inflation concerns, pushing U.S. Treasury yields to multi-month highs.
The U.S. Treasury Department's latest semi-annual report found no major trading partner manipulated its currency in 2025, but kept 10 economies, including China and Japan, on its watch list for foreign exchange practices.
The Canadian dollar advanced against its U.S. counterpart, buoyed by a sharp increase in crude oil prices following attacks on tankers in the Red Sea and solid domestic retail sales data.
Speculators have increased net short positions against the Canadian dollar to $12.5 billion, surpassing the Japanese yen and making it the most bearishly positioned major currency amid escalating trade disputes with the United States.
UBS has upgraded the Norwegian krone to its list of favored currencies, arguing that a limited oil price rally will allow major central banks to hold interest rates steady, supporting higher-yielding assets.
The South African rand fell nearly 2% against the U.S. dollar after the South African Reserve Bank surprised markets by keeping its benchmark lending rate unchanged, citing sufficiently restrictive policy despite high inflation.
