Currencies

Asian shares had a cautious open Tuesday as investors awaited fresh trade news that may define the appetite for US assets.The MSCI Asia Pacific Index opened flat with marginal declines in Japan and South Korea. The dollar edged down in early Asian trade with a gauge of the greenback’s strength hovering near its lowest level in almost two years on weak demand for US assets. The yield on the 10-year US Treasury fell two basis points while yields on Japan’s 40-year sovereign slumped ahead of a bond auction. Contracts for...

EUROPEAN shares kicked off the week on a positive note on Monday, recouping the previous session’s losses, as markets heaved a sigh of relief after US President Donald Trump delayed his threat to impose a 50% tariff on the region.The pan-European Stoxx 600 index closed 0.99 per cent higher at 550.50. It had lost 0.9 per cent on Friday after Trump unexpectedly called for sharp tariffs on goods from the European Union, saying that negotiations with the region were not moving fast enough.On Sunday, Trump extended the deadline for tariffs to July 9 from...

AUD/USD pair reaches 0.6537 at the start of the week’s session, a level last seen on November 25, 2024.AUD/USD braces for volatility with US Durable Goods and Consumer Confidence Data.AUD/USD retreats from six-month high but remains steady with resistance firming at 0.6500.The Australian Dollar (AUD) is consolidating within a narrow range against the US Dollar (USD) after reaching a six-month high early Monday. However, the pair retreated from the highs ahead of Tuesday’s key economic data.Recent broad-based weakness in the US Dollar has supported demand for risk-sensitive currencies, allowing AUD/USD...

Indian Rupee pares earlier gains as USD/INR rebounds slightly above 85.00.US Dollar steadies after a sharp early-week decline, DXY Index hovers above 99.00The final round of US-India trade deal talks is expected soon in New Delhi.The Indian Rupee (INR) trims some of the earlier gains against the US Dollar (USD) on Monday, with the USD/INR pair retreating slightly above 85.00 during the American trading hours. The slight weakness in the Indian Rupee comes on the back of easing global trade tensions, which lent some support to a broadly weak US...

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...