Forex

The Australian dollar sank to its lowest level since early July following weaker jobs data, which has dramatically cooled expectations for the Reserve Bank of Australia (RBA) to hike rates again in November.

Emerging Asian currencies weakened as hotter-than-expected US inflation revived Federal Reserve rate hike concerns, boosting the dollar and triggering a sell-off in AI-linked stocks. South Korea's won, Taiwan dollar, Philippine peso and Indonesian rupiah came under pressure amid capital outflows and rising borrowing costs.

The dollar slipped from an 18-month peak on Thursday in choppy trading as a sharp drop in Treasury yields weighed on the greenback, while cautious remarks from Federal Reserve officials tempered...

The Indian rupee opened at 94.92 against the US dollar, up 23 paise from the previous session's close of 95.15. The currency drew support as US Treasury yields pulled back after September inflation data came in stronger than expected, cooling expectations for a Federal Reserve rate hike in October. The Reserve Bank of India has introduced a 20% Foreign Exchange Risk Reserve requirement on specified rupee derivative contracts exceeding $2 million.

The dollar has fallen back after peaking at an 18-month high, fueled by stronger than expected inflation data. Expectations of an October rate hike were moderated by prudent remarks from Federal Reserve officials. With Treasury yields decreasing, the dollar slipped against key currencies like the euro and sterling. Traders are now closely monitoring the upcoming US producer price and retail sales figures to gauge future market movements.

The South African rand weakened sharply on Wednesday after a hotter-than-expected US inflation reading boosted expectations that the Federal Reserve could raise interest rates later this month. ...

KUALA LUMPUR: The ringgit opened marginally higher against the US dollar on Wednesday, supported by a weaker US Dollar Index (DXY) as investors reassessed the outlook for US interest rates following signals that the Federal Reserve may adopt a less aggressive monetary policy stance.

The Indian rupee faced renewed depreciation pressure on Thursday as rising oil prices and elevated U.S. Treasury yields weighed on the currency. Brent crude’s December contract rose nearly 2% on Wednesday, taking its September gain to around 14%, while the 10-year U.S. yield climbed near its highest level since 2007. Softer-than-expected August U.S. inflation data and cooling expectations for an October Federal Reserve rate hike did little to lift sentiment.

The Indian rupee weakened to a more-than-one-week low of 95.9825 per dollar, down 0.2%, as Middle East tensions lifted oil prices. With India importing nearly 90% of its crude, the currency remains highly sensitive to energy-cost shocks. Dollar selling by state-run banks, likely on behalf of the Reserve Bank of India, helped cap further losses. Indian equities also fell nearly 1.5% to their lowest level since April.

Sterling fell to a near three-month low of $1.3222 on Thursday as the dollar was repriced after a hawkish shift by the Federal Reserve. The pound is down about 1.25% since Monday and also edged lower against the euro. Money markets are pricing in roughly 100 basis points of Bank of England rate hikes over the next 12 months, with traders seeing about a 75% chance of a move in November.