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The Australian Dollar holds losses below a level after pulling back from a six-month high of 0.6537.China Industrial Profits increased 3% YoY in April 2025, following a previous growth rate of 2.6%.The US Dollar struggles over fiscal deficit concerns as Trump’s tax bill is set to be voted on in the Senate.The Australian Dollar (AUD) remains subdued against the US Dollar (USD) for the second successive day on Tuesday. However, the AUD/USD pair maintains its position near a psychological 0.6500 level after pulling back from a six-month high of 0.6537, which was reached on Monday. However, the continued decline in…

Bank of Japan Governor Kazuo Ueda said on Tuesday that while the Japanese central bank are now closer to the inflation target than any time during the last few decades, the BoJ is not quite there.Key quotesWhile many of my G7 colleagues looked relieved by the progress made in the fight against inflation, they also acknowledged new challenges such as heightened trade policy uncertainty and dealing with more frequent supply-side shocks.In Japan, we are still grappling with the longstanding challenge of achieving our 2% inflation target in a sustainable manner.While we are now closer to our inflation target than at any…

USD/JPY remains capped below former psychological support, now resistance, at 144.00.BoJ Governor Ueda to address “New Challenges for Monetary Policy” conference on Tuesday, with markets watching for policy clues.The US Dollar remains vulnerable as potential hawkish signals from the BoJ could drive renewed Yen strength.USD/JPY is attempting a mild recovery after last week’s sell-off in the United States (US) bond market dragged the pair below the key psychological level of 144.00. The move lower was driven by rising US Treasury yields and a broader risk-off tone. With the pair now trading below 143.00 at the time of writing, attention shifts to…

The Mexican Peso keeps firm against the USD Dollar, marking a fresh year-to-date high.US markets remain closed for Memorial Day, with low liquidity expected throughout the day.USD/MXN faces renewed pressure, testing 19.20 as focus shifts to Friday’s US PCE print.The Mexican Peso (MXN)  is experiencing a steady appreciation against the US Dollar (USD) on Monday, reflecting lingering uncertainty in the United States (US) economic outlook amid concerns about US President Donald Trump’s tariff threats and the country’s fiscal outlook.With US markets closed for Memorial Day on Monday, the Mexican Peso remains resilient, with the USD/MXN pair trading at around 19.19,…

Rising for the second straight session, the rupee jumped 35 paise to close at 85.10 (provisional) against the US dollar on Monday, buoyed by a positive trend in domestic equity markets and a weak American currency overseas.According to forex traders, the inflow of foreign funds and the RBI’s announcement of giving a record dividend of ₹2.69 lakh crore to the government for FY25 added strength to the local currency even as a slight recovery in crude oil prices capped its gain.At the interbank foreign exchange market, the rupee opened at 85.02 and moved between the intra-day high of 84.78 and…

The Indian rupee closed modestly stronger after hitting a two-week high on Monday as a turnaround in the dollar index weighed on regional peers like the Chinese yuan, which touched a seven-month peak earlier in the day. The rupee closed at 85.0.850 against the U.S. dollar, up 0.1% from its close at 85.2125 in the previous session. The currency had risen to 84.79 before trimming gains, as the dollar edged higher against major peers and importer demand emerged above the 85 level, traders said.The dollar index was little changed at 99 after hitting an over month-low of 98.6 in early…

The Pound Sterling refreshes a three-year high near 1.3600 against the US Dollar due to US President Trump’s ever-changing tariff announcements on the EU. Trump threatens to impose 25% duties on Apple for not manufacturing in the US.Traders see the BoE reducing interest rates just once in the remainder of the year.The Pound Sterling (GBP) posts a fresh three-year high near 1.3600 against the US Dollar (USD) at the start of the week, amid holidays in the United Kingdom (UK) and the United States (US) markets on account of the Spring Bank Holiday and Memorial Day, respectively. The GBP/USD pair, trading…

The rupee appreciated sharply by 40 paise to 85.05 against the US dollar in early trade on Monday on the back of a weak American currency index and positive domestic equity markets. Inflow of foreign funds and the RBI’s announcement of giving a record dividend to the government for FY25 also added strength to the local currency, forex traders said. Besides, market participants will await the release of industrial and manufacturing production data for April as well as the Q1 GDP growth numbers, scheduled this week, that are likely to offer deeper insights into the country’s economic activity, according to…

JP Morgan report predicts soft USD benefiting EM assets, with potential for EM currencies to outperform dollar. | Photo Credit: iStockphoto The US dollar will remain soft this year, which is likely to benefit Emerging Market (EM) assets, according to a research report by American investment banking firm JP Morgan. “USD could stay soft this year, which would help EM assets. EM historically traded inversely to the dollar, and the big question is whether the last 15 years’ downtrend in EM and the strong USD could be ending,” says the report.EM assets involve putting money into countries with developing economies.…

The Australian Dollar strengthens as the US Dollar attracts sellers due to rising US economic concerns.However, the AUD may lose its ground as the RBA could deliver further rate cuts.The US fiscal deficit could increase if Trump’s “One Big Beautiful Bill” passes the Senate.The Australian Dollar (AUD) continues to gain ground against the US Dollar (USD) on Monday, marking fresh six-month highs. The AUD/USD pair receives support as the US Dollar remains under downward pressure amid rising uncertainty surrounding the United States (US) economy.The AUD’s upside could be restrained due to dovish sentiment surrounding the Reserve Bank of Australia’s (RBA)…