Canadian dollar, Mexican peso down after Monday rebound
Investors' focus will be the Federal Reserve's policy this week. The Fed is widely expected to make no changes to the policy rate and no new projections on inflation and rates are due at this meeting
The rupee may touch the 86-per-dollar mark in the short term, said Jigar Trivedi, a senior analyst at Reliance Securities, who recommends buying the dollar-rupee pair on every dip
The RBI's frequent interventions have supported the rupee in the face of multiple headwinds, including a hawkish shift in the Federal Reserve's outlook for policy rates over 2025, concerns about India
The rupee had settled at Rs 84.80 per dollar on Friday
A decline in the yuan and elevated US bond yields had weighed on the rupee through the session and the currency declined further after the trade data was released
China's 10-year and 30-year sovereign bond yields fell over 4 basis points each to record lows of 1.7650 per cent and 1.9950 per cent, respectively
Peter Navarro, Trump's new senior counselor for trade and manufacturing, said White House would not interfere with the Treasury's review to see foreign trade partners are not manipulating currencies
Asked about the potential for the Trump administration to try to weaken the dollar's value through a new version of the 1985 Plaza Accord, Yellen said that the Biden administration believes it's best
Letting the yuan depreciate could make Chinese exports cheaper, thus blunting the impact of tariffs, and creating looser monetary settings in mainland China
President Xi Jinping, at a symposium on Dec. 6, urged full preparation to achieve 2025 economic targets, and said the country's current development faces many challenges
The dollar received some support overnight from better-than-expected U.S. manufacturing data, which also showed a mitigation in price increases
The current dollar tranche would consist of a 5.5-year, 10.5-year and 30-year dollar bond, a term sheet seen by Reuters showed. Alibaba is also working on a 3.5-year, 5-year, 10-year and 20-year
The yuan risks years of downward pressure during the second Trump presidency, and the threat of another trade war is already fueling bets against the currency
The euro languished at a seven-month trough and the yuan slumped to its lowest in more than three months, with Europe and China both targets of potential Trump tariffs
Market participants said that the RBI asked some banks to refrain from speculative trading against the rupee
The contrasting fortunes have carried over into August. The offshore Chinese yuan climbed to nearly 7.11 on Monday, its best level since the first week of this year
Market participants said that the Indian currency did not depreciate further as the Reserve Bank of India intervened in the foreign exchange market by selling dollars
The shifting Fed expectations lifted oil prices and dragged Treasury yields to their lowest in two months after data this week hinted the US labour market was easing
The move comes as US Treasury yields pushed to a near four-week peak lifting the greenback higher