Currency Market News

Canadian dollar gains on Bank of Canada–Fed policy divergence while the Chinese yuan hits a 13-month high as PBOC guidance, year-end flows and Fed cut bets lift the currency.

The US dollar weakened after the Federal Reserve cut rates and signalled a dovish path, pushing the USD toward a third consecutive weekly decline. India’s rupee tumbled to a record low even as forex reserves rose modestly, raising prospects of RBI intervention to stabilise the currency.

The U.S. dollar weakened after Fed officials signaled a dovish stance, pushing the dollar index lower and boosting risk assets and gold. Meanwhile the Indian rupee plunged to a fresh record amid trade tensions and sustained foreign outflows, forcing limited RBI intervention.

A Fed-driven pivot and surprise T-bill purchases pushed the dollar lower, lifting pairs like EURUSD. Separately, a weakening South Korean won and comments from a Bank of Korea official highlighted rising EM FX stress and possible domestic interventions.

Monetary-policy divergence between the ECB and the Federal Reserve is shifting FX flows—supporting a stronger euro and pressuring the U.S. dollar—while the Bank of Korea warns of action as the won slides, with potential offshore bond issuance and coordinated measures on the table.

The euro's sharp real-effective appreciation has pushed it to multi-year highs and is prompting economists to warn the ECB may need to shift policy. Meanwhile, the RBA's decision to hold rates buoyed the Australian dollar and highlights how local policy and exogenous shocks are shaping specific currency moves.