The dollar remained strong in the markets on Tuesday, with the yen struggling to stay above the 156 level. Despite this, trading remained mostly rangebound as investors maintained their expectations regarding the Federal Reserve rate cuts this year. The tight range in the yen was attributed to fears of intervention from Japanese authorities, which prevented
Forex
The U.S. dollar has recently been experiencing a period of calm trading against major currencies, with Goldman Sachs predicting that these narrow ranges will persist for some time. Despite losing approximately 1% last week due to soft U.S. inflation data, the Dollar Index, which measures the greenback against a basket of six other currencies, remained
The recent cautious comments from Federal Reserve officials have left investors uncertain about the future path of U.S. interest rates. Despite signs of cooling inflation, the dollar remains stable as traders await further clues. Speculation on potential rate cuts has led to varying predictions, with markets pricing in at least two rate cuts this year.
BofA’s analysis highlights a positive outlook for the Indian Rupee (INR) as the country approaches elections. Strong improvements in the current account and debt capital flows have bolstered confidence in the currency. This optimism is reflected in long INR positions and carry trades funded by low-yielding currencies. However, investor focus is now shifting towards the
The U.S. dollar has seen a slight increase in value in European trade, despite facing a significant weekly fall due to cooling inflation and weak retail sales. The Dollar Index, which tracks the greenback against a basket of six other currencies, is currently trading 0.2% higher at 104.580. This comes after a period of decline
The recent softer U.S. consumer inflation readings have had a significant impact on Asian currencies. The dollar weakened to a one-month low, prompting traders to increase their bets on a potential September interest rate cut. This led to gains in most Asian currencies, although some regional units were held back by soft economic data and
Asian currencies showed signs of resilience against a weaker dollar on Wednesday, buoyed by market expectations regarding interest rates and key economic data. The Federal Reserve’s stance on interest rates, as articulated by Chair Jerome Powell, played a significant role in shaping market sentiment. While the dollar weakened in Asian trade, the overall outlook for
The U.S. dollar held steady on Tuesday, as investors eagerly awaited the release of crucial inflation data that could influence future interest rate decisions. The Dollar Index, which measures the greenback against a basket of other major currencies, inched up by 0.1% to 105.250 during early trading hours. With traders adopting a cautious approach, the
Several Asian currencies remained relatively flat or experienced slight losses on Monday, with the yuan facing pressure due to middling Chinese inflation data. The yuan’s USDCNY pair rose by 0.1%, reaching a two-week high following the release of data over the weekend. The consumer price index inflation in China exceeded expectations in April, indicating that
The U.S. dollar has been experiencing some volatility in recent trading sessions, as investors eagerly await the release of next week’s U.S. inflation data. The Dollar Index, which measures the greenback against a basket of six other major currencies, was seen trading 0.2% higher at 105.605. This comes after the dollar hit a one-month low