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The report by MUFG highlights the impact of US tariff policy uncertainty and the risk of coordinated FX intervention by US and Japanese authorities on the Dollar. The uncertainty has led to Dollar weakness and a surge in real assets like Gold, while local factors continue to drive divergence across Asian currencies. The report suggests that actual tariff increases may be slower to come this year due to upcoming US mid-term elections.Tariff uncertainty and FX intervention risks”The two key themes impacting markets are US tariff policy uncertainty coupled with the risk of coordinated FX intervention by US and Japanese authorities,…
The Euro (EUR) has reversed previous losses and turned positive on the daily chart on Tuesday, trading at 1.1800 at the time of writing, with the four-month highs, at 1.1907, at hand. US trade uncertainty, market expectations of further Federal Reserve (Fed) easing, and the growing chances of a US government shutdown are keeping the Greenback in the doldrums.A new tariff salvo, this time to South Korea, highlights the erratic US trade policies, while in the US, the risk of a Government shutdown rises as tensions simmer in Minnesota after two people were killed in immigration raids. All this happens…
The Indian rupee firmed slightly on Tuesday, helped along by a broadly weaker dollar and the boost from a landmark trade agreement between India and the European Union, which is expected to cut tariffs on nearly all Indian exports.The rupee closed at 91.72 per dollar, up 0.2% from its closing level on Friday. Indian financial markets were shut on Monday for a local holiday. The currency’s modest recovery followed a slump to its all-time low of 91.9650 on Friday.India and the EU have finalised a long-pending landmark trade deal, both sides said on Tuesday. Over a period of seven years,…
The rupee rebounded from its all-time low levels and gained 19 paise to close at 91.71 (provisional) against the US dollar on Tuesday, on decline in US dollar index and India-EU FTA negotiations. Forex traders said the rupee recovered marginally as traders rushed to cover broad dollar weakness. Moreover, the deal over India-EU FTA boosted domestic market sentiments. However, rising commodity and crude oil prices capped sharp gains. At the interbank foreign exchange, the rupee opened at 91.82 and lost ground to touch an intra-day low of 91.90 against the greenback. The domestic unit settled for the day at 91.71…
In recent weeks, the Indian Rupee has traded in a narrow yet volatile range, even as the US Dollar weakens globally. After reaching a recent high of 91.96 against the dollar, the Rupee has eased slightly but remains relatively stable near Rs 90.Rupee’s stability comes amid heightened global market uncertainty, as the Dollar Index fell below 100 for the first time in nearly a year.A combination of softer US monetary policy, geopolitical tensions, and evolving rate cut expectations are driving volatility across global currency markets—raising questions about whether the Dollar can reclaim its lost strength, according to a report by…
Gold (XAU/USD) retains its bullish bias for the seventh straight day on Tuesday and trades close to the $5,100 mark, within striking distance of the all-time peak during the early European session. Global uncertainties stemming from US trade policies and geopolitical risks, along with strong central bank buying and retail demand, continue to offer support to the precious metal. Adding to this, bets that the US Federal Reserve (Fed) would lower borrowing costs two more times in 2026 further benefit the non-yielding yellow metal.However, a modest US Dollar (USD) uptick could act as a headwind for Gold amid the underlying…
The rupee rebounded from its all-time low levels and gained 10 paise to trade at 91.80 against the US dollar in early deals on Tuesday, as the dollar index retreated from its elevated levels. Forex traders said the rupee recovered marginally as traders rushed to cover broad dollar weakness. At the interbank foreign exchange, the rupee opened at 91.80 against the greenback, up 10 paise from its previous close. On Friday, the rupee hit a historic low of 92 per dollar and gained marginally to settle at 91.90 against the American currency. Forex and equity markets were closed on Monday…
The Japanese Yen (JPY) attracts some sellers during the Asian session on Tuesday and moves further away from the highest level since November 2025, touched against its American counterpart the previous day. Investors remain concerned about Japan’s fiscal health on the back of Prime Minister Sanae Takaichi’s aggressive spending and tax cut plans. This, along with a generally positive tone around the equity markets, is seen undermining the safe-haven JPY amid domestic political uncertainty ahead of a snap election on February 8.That said, speculations that Japanese authorities would step in to stem further JPY weakness warrant caution for bearish traders…
The USD/JPY pair falls to its 11-week lows near 154.20 during the early Asian session on Tuesday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) amid speculation about a possible coordinated intervention by Japanese and US authorities.Speculation of intervention is growing after traders reported during Friday’s US session that the Federal Reserve Bank of New York had contacted financial institutions to ask about the JPY’s exchange rate. Japanese Finance Minister Satsuki Katayama declined to comment on the rate checks, while Japan Chief Cabinet Secretary Seiji Kihara said on Monday that he will take appropriate action on foreign exchange according to…
The USD/JPY opened the week at 157.57, with Dollar selling early in the week due to rising tensions between the US and Europe. The pair recovered to around 158, driven by overseas investor interest and rising yields. Following a press conference by Japan’s Finance Minister, the USD/JPY rose above 159 after the BOJ revised its inflation outlook. MUFG’s Tokyo Head of Global Markets Research Teppei Ino notes.Market dynamics and recent movements”Dollar selling led early in the week after tensions between the US and Europe intensified over Greenland, pushing the pair down to 157.44. However, risk-off yen buying did not persist,…