Foreign exchange markets and global currency movements.
Coverage of currency markets including major pairs, central bank actions, interest-rate differentials, and geopolitical influences. This section highlights trends in FX markets that impact global trade, inflation, and cross-asset correlations.
311 total articles
President Donald Trump announced on Truth Social that he would raise U.S. tariffs on autos and other goods from South Korea to 25% after Seoul failed to enact legislation tied to a deal that capped tariffs at 15%. The pact, struck during Mr. Trump’s October 2025 visit to Seoul, linked the tariff cap to a pledged $350 billion of South Korean investm…
Most Asian currencies traded in narrow bands on Tuesday as investors awaited a Federal Reserve interest rate decision and weighed geopolitical tensions. The Japanese yen eased after a sharp rally that followed government warnings about excessive volatility, while the South Korean won slipped modestly after U.S. tariff remarks. Other regional curren…
The Japanese yen remained solid after two sessions of sharp appreciation as markets stayed alert to the potential for coordinated foreign-exchange intervention by U.S. and Japanese authorities. The stronger yen weighed on the U.S. dollar, which hovered near four-month lows amid domestic political turmoil, concerns about a possible government shutdo…
Bank of America’s quantitative event analysis shows markets have moved toward favouring a softer U.S. dollar following last week’s geopolitical shocks. The bank’s tools recorded spot depreciation, option flows favoring USD puts, and skew tilting against USD calls. BofA highlights the British pound, Swiss franc and Scandinavian currencies as notable…
A late-week rate check by the New York Federal Reserve coincided with a sharp drop in the USD/JPY pair, a move Bank of America Securities says raises the probability of coordinated intervention. The yen strengthened to its strongest level since late November as USD/JPY fell, and BofA outlines possible U.S. Treasury objectives behind the Fed’s FX de…
The U.S. dollar declined sharply and the Japanese yen strengthened markedly on Monday amid market speculation that U.S. and Japanese authorities have coordinated, or may coordinate, intervention in currency markets. The Dollar Index fell to its weakest level since mid-September, while USD/JPY extended a steep decline that began on Friday. The euro …
Most Asian currencies climbed on Monday as the US dollar extended a sharp decline ahead of the Federal Reserve's policy meeting. The yen outperformed peers, surging to two-month highs amid speculation of coordinated action between US and Japanese authorities, while other regional currencies also gained ground against a softer dollar.
The Japanese yen rallied sharply, pressuring the U.S. dollar across markets amid elevated concerns that Washington and Tokyo could coordinate currency intervention. The yen climbed further after rate checks prompted by New York Fed contacts with traders, while the euro hit multi-month highs and gold and silver reached unprecedented nominal price le…
The U.S. dollar is poised for its sharpest weekly drop since June, pressured by escalating geopolitical conflicts and investor apprehensions regarding U.S. foreign relations. While the greenback declines, the British pound advances following unexpected retail sales growth, signaling domestic economic resilience. Elsewhere, the euro retreats slightl…
Asian currencies nudged higher on Friday, propelled by a notable decline in the US dollar, which is set for its worst weekly performance in six months. The Japanese yen, however, softened following the Bank of Japan's decision to keep interest rates unchanged while modestly upgrading its inflation and growth forecasts. Geopolitical tensions and eco…
Several major pension funds in Northern Europe have started reassessing their exposure to US financial markets amid increasing geopolitical uncertainties and worries about America's fiscal standing. These investors cite concerns over US government debt levels and unpredictable foreign policy as factors increasing the risk premiums associated with U…
The US dollar gained modestly following President Trump's retreat from imposing tariffs on European nations over Greenland and assurances against military intervention. This easing of geopolitical tensions helped restore some investor confidence in US assets. Meanwhile, the euro remained largely stable but showed signs of gradual weakening as marke…
Asian currencies saw a modest decline on Thursday, influenced by a marginally stronger US dollar which gained support from a thaw in geopolitical tensions surrounding Greenland. Contrasting this trend, the Australian dollar reached a 15-month peak, propelled by unexpectedly strong domestic employment figures indicating a tight labor market.
Asian currencies generally declined on Thursday as the U.S. dollar gained slight momentum supported by easing geopolitical concerns surrounding Greenland. The Australian dollar notably reached its highest level in 15 months following the release of strong employment figures bolstering expectations of a Reserve Bank of Australia rate hike.
UBS reports that regulatory reforms in Taiwan's life insurance sector have diminished the prospects of a sudden surge in the USD/TWD rate akin to the sharp increases observed in April-May 2025. The recent depreciation of the Taiwan dollar against the U.S. dollar is primarily interpreted as a market correction following prior substantial appreciatio…
UBS reports that recent regulatory reforms in Taiwan's life insurance industry reduce the chance of a sharp USD/TWD exchange rate spike seen previously. The recent rise in USD/TWD is interpreted as a market recalibration rather than a sustained uptrend, with foreign exchange hedging costs declining and insurers needing to build significant FX volat…
UBS CEO Sergio Ermotti reaffirmed the indispensability of the US dollar and US assets for global investors, despite heightened geopolitical tensions. Speaking at the World Economic Forum in Davos, he stressed that while diversification is an emerging trend, the US remains the primary investment destination. Additionally, Ermotti identified both US …
During a panel at the World Economic Forum in Davos, UBS CEO Sergio Ermotti underscored the persistent dominance of the U.S. dollar as the primary investment currency despite ongoing geopolitical challenges. He emphasized that while diversification is gaining traction, the U.S. remains an indispensable investment hub. Ermotti also remarked on the i…
The U.S. dollar continued its slide near recent lows as President Donald Trump renewed his controversial stance on acquiring Greenland, a Danish territory, ahead of his speech at the World Economic Forum in Davos. Meanwhile, economic data from the U.K. indicating higher-than-expected inflation provided modest support to the British pound. Across As…
The U.S. dollar hovered near recent lows as President Donald Trump reiterated his interest in Greenland, a move observed ahead of his speech at the World Economic Forum in Davos. Currency markets reacted to this geopolitical focus and key inflation data out of the U.K., affecting several major currency pairs.
Asian currencies displayed varied movements on Wednesday as the Japanese yen remained steady despite a significant sell-off in Japanese government bonds. At the same time, the South Korean won registered a robust rebound, while the Indian rupee weakened to record lows amid ongoing global trade tensions and capital outflows. Meanwhile, the U.S. Doll…
Asian currency markets exhibited a varied performance on Wednesday, with the Japanese yen maintaining stability in the face of a significant sell-off in Japanese government bonds. Meanwhile, the South Korean won experienced a notable recovery as the Indian rupee slid to unprecedented lows. The US Dollar Index continued its decline influenced by US …
The Danish krone has experienced relative weakness against the U.S. dollar in early 2024, with EUR/DKK approaching the highest level since the global pandemic. Bank of America Securities highlights that this move brings the currency near the ERM II's fluctuation limits, prompting expectations of central bank intervention to maintain the peg. Past e…
At the beginning of the year, geopolitical tensions have influenced currency markets, especially impacting the Danish krone which has weakened against the U.S. dollar. Bank of America Securities emphasizes the importance of monitoring the EUR/DKK exchange rate, noting its recent rise near the upper bounds set by the ERM II framework. The Danish cen…
UBS forecasts the EUR/USD exchange rate will gradually ascend toward 1.20 over the coming months, eventually stabilizing at that level. The Swiss bank's outlook points to a weakening U.S. dollar relative to the euro, driven by a balance of economic factors across Europe and the U.S., with key risks centered on geopolitical events and Federal Reserv…
