Currencies

Asian markets picked up on the positive note set by last week's cautious optimism. Investors had been awaiting the outcome, as China's factory output is already slowing and Japan's inflation figures suggest constant monetary policy.The latest lift came as U.S. President Donald Trump delayed his 50% tariffs on European Union goods to July 9. The decision provided a short-term respite from trade war worries and buoyed global investor sentiment. x Markets across the globe posted limited gains on Monday. MSCI's broadest index of the world's listed shares gained 0.2%, while the pan-European STOXX index rallied 1%,...

NZD/USD refreshes six-and-a-half month high near 0.6030 ahead of the RBNZ policy meeting on Wednesday. The RBNZ will likely cut its Official Cash Rate (OCR) by 25 bps to 3.25%. US President Trump suspends 50% tariffs on the EU until July 9. The NZD/USD pair posts a fresh six-and-a-half-month high near 0.6030 against the US Dollar (USD) at the start of the week. The Kiwi pair strengthens as the New Zealand (NZD) outperforms across the board ahead of the Reserve Bank of New Zealand’s (RBNZ) interest rate decision, which will...

The euro hit a one-month high against the greenback on Monday (May 26), after US President Donald Trump backed down from threatened 50 per cent duties on European Union shipments from Jun 1, as the bloc asked for time to “reach a good deal”.The US dollar continued its decline against a broad spectrum of other currencies as Trump’s policy reversals, as well as the sweeping spending and tax-cut Bill, turned investors away from US assets.“The ‘Sell America’ theme, which obviously was the dominant theme back in April, is back on...

TEMPO.CO, Jakarta - Governor of Bank Indonesia Perry Warjiyo and Governor of the People's Bank of China Pan Gongsheng signed a memorandum of understanding (MoU) on Sunday, May 25, 2025, at Merdeka Palace to promote the use of local currencies in bilateral transactions. The signing was witnessed by Indonesian President Prabowo Subianto and Chinese Premier Li Qiang.According to Ramdan Denny Prakoso, Executive Director of BI’s Communication Department, the agreement builds upon a previous arrangement established between the two central banks on September 30, 2020."By expanding the scope of cooperation in bilateral...

Emerging market currencies rose, as President Donald Trump’s move to extend a deadline for aggressive tariffs on the European Union bolstered risk appetite.JPMorgan’s Emerging Market Currency Index edged higher, on track to kick off its eighth consecutive week of gains, which would mark its best run since at least 2010. Meanwhile, MSCI’s gauge of EM currency returns climbed as much as 0.4% to match its all-time high. Enthusiasm for the greenback has faded this year due to Washington’s unpredictable trade policy and concerns about the deficit, with developing-nation currencies some...

The Reserve Bank of India is taking a major step towards the internationalization of the Rupee. As per a Reuters report, the central bank has sought approval from the government to allow domestic banks to lend in rupees to overseas borrowers.  As per the sources quoted by Reuters, last month, the proposal was sent by the Reserve Bank to the Finance Ministry. The proposal suggested allowing the domestic banks and their foreign branches to lend in rupees to non-residents in neighbouring countries like Bangladesh, Nepal, Sri Lanka, and  Bhutan.  Impact...

TOKYO/LONDON :The euro hit a one-month high against the dollar on Monday, after U.S. President Donald Trump backed down from threatened 50 per cent duties on European Union shipments from June 1, after the bloc asked for time to "reach a good deal."The dollar continued its decline against a broad swathe of other currencies as Trump's policy reversals, as well as his sweeping spending and tax-cut bill currently in legislation, turned investors off from U.S. assets."The 'Sell America' theme, which obviously was the dominant theme back in April, is back...

The Indian rupee opened stronger at 85.05 per US dollar on Monday (May 26), extending gains from Friday (May 23) amid broad weakness in the dollar and firm domestic equities.The currency began the session at 85.02 and briefly touched 84.85 in early trade, supported by the dollar’s slide and a rally in Asian currencies, especially the Chinese yuan which hit a seven-month high.What’s driving the rupee? The dollar index slipped 0.34% to 98.67, weighed down by global fiscal concerns and softer US trade rhetoric.Asian currencies gained across the board. The...

Asian currencies posted modest gains on Monday as the U.S. dollar extended losses, driven by President Donald Trump’s decision to delay steep tariffs on the European Union. The U.S. Dollar Index dropped 0.3% during Asian trading, hitting its lowest level in over a month, while Dollar Index Futures mirrored the decline. The greenback’s weakness followed Trump’s announcement on Sunday to postpone the imposition of 50% tariffs on EU imports from June 1 to July 9. The move came after a phone call with European Commission President Ursula von der Leyen,...

The euro and other global currencies experienced a significant boost on Monday following President Donald Trump's decision to delay imposing 50% tariffs on EU imports, initially set for June 1. This move, requested by the EU to facilitate a better deal, comes amid Trump's broader policy shifts, contributing to a weakening U.S. dollar.Ray Attrill of the National Australia Bank noted the resurgence of the 'Sell America' trend in the currency markets. Investors are factoring in the likelihood that the U.S.-EU tariff resolution won't reach the hefty 50% level, though...