Forex

Kazakhstan’s central bank said it sold foreign exchange worth 374 billion tenge, or about $809 million, in August to hedge gold purchases. It said it will continue selling the same amount in September. The sales are intended to offset exchange-rate risks stemming from its gold purchases, according to Jin10.

Eurozone inflation data came in below expectations, with headline inflation easing to 2.2% from 2.4% and core inflation slowing to 2.7% from 2.9%. The softer readings suggested price pressures are fading faster than markets had anticipated. The euro weakened against sterling, at one point falling 0.4% to around 0.84, a multi-month low, reinforcing bets that the European Central Bank could accelerate rate cuts.

The euro rose 0.15% against the U.S. dollar during Monday’s European session, trading near 1.1600 as the greenback pulled back. Germany’s preliminary CPI accelerated to 2.4% year on year and the harmonized CPI rose to 2.6%, both higher than the prior readings and above market expectations. The figures strengthened the outlook for a tighter European Central Bank policy stance.

The euro fell to a two-week low against the U.S. dollar on Tuesday as the greenback strengthened. Recent U.S. retail sales and inflation data have prompted markets to reprice Federal Reserve expectations, with traders pushing back the timing of a first rate cut. The U.S. dollar index (DXY) rose 0.4% on the day. If the Fed keeps rates high while the European Central Bank shifts toward easing, the dollar could stay firm and weigh on multinational earnings.

The yen fell to 160.20 per dollar after the Federal Reserve chair signaled openness to raising interest rates, pushing up U.S. Treasury yields and the dollar. Japan has already spent a record $98.7 billion intervening to support the currency, but the yen remains under pressure. Japan’s 10-year government bond yield rose to a fresh 30-year high of 2.95% the same day. Markets are watching the upcoming G20 finance chiefs meeting for possible U.S. pressure on Japan to keep fiscal discipline and for the BOJ to raise rates.

Thailand’s baht and gold prices rose to their highest levels in nearly three months as sentiment toward the U.S. dollar stayed weak. The U.S. Treasury’s debt buyback operation failed to ease market worries about rising national debt and persistent fiscal deficits, leaving the dollar hovering near multi-month lows. The baht touched 32.85 per dollar on Monday, while spot gold climbed to $4,346.36 an ounce, its highest since mid-May.

The Indian rupee strengthened 17 paise to 95.56 against the U.S. dollar in early trade on Thursday as the greenback weakened after the U.S. Treasury said it would double buybacks of longer-dated Treasury bonds to USD 4 billion. The dollar also came under pressure after the Federal Reserve’s July meeting minutes showed markets had scaled back expectations of further policy tightening. In the interbank market, the rupee opened at 95.57 and then moved up to 95.56.

The dollar index fell to a two-month low after softer U.S. economic data led markets to scale back expectations for further Federal Reserve rate hikes. The euro rose to a two-month high of about $1.1614 against the dollar. The yen also edged firmer to around 159.15 per dollar, reflecting a repricing of the rate outlook.

The Bank of Japan confirmed it coordinated with the United States to intervene in the foreign-exchange market by buying yen. The yen surged against the dollar, rising as much as 5% over three days and touching a three-month high of 155.20 before easing back to around 157.35. The dollar index rebounded from its lows, while the euro and sterling were largely steady.

BirlaNu Limited has increased the standby letter of credit (SBLC) limit for its wholly owned subsidiary BirlaNu International GmbH from EUR 10.73 million to EUR 20 million for 12 months, with ICICI Bank’s UK branch in Germany as the issuing bank. The SBLC will be used to secure the German unit’s working-capital loan facilities, and carries a 0.53% annual service fee. The move reflects stronger group-level funding support for its European operations as part of routine cross-border financing, with no direct link to pricing in traditional assets and only a mild rise in euro-denominated credit tool usage implied.