EconoTicker

The U.S. dollar strengthened sharply, hitting a two-month high as investors sought safety amid growing uncertainty surrounding the U.S. government shutdown. Rising Treasury yields and risk aversion further supported the greenback.

The Japanese yen fell to an eight-month low, pressured by political shifts and expectations of fiscal stimulus and continued monetary easing under new LDP leader Sanae Takaichi.

Meanwhile, the euro dropped to a one-month low, weighed down by renewed political turmoil in France after Prime Minister Lecornu’s resignation fueled concerns about instability within the euro area.

Market impact: Strongly bullish for the USD, bearish for the JPY and EUR; heightened political and fiscal uncertainty is driving global FX volatility and supporting safe-haven dollar flows.

The yen weakened sharply as traders priced in expectations of aggressive fiscal stimulus following Sanae Takaichi’s election as LDP leader, fueling bets on continued easy monetary policy in Japan.

The euro fell, pressured by renewed political instability in France after Prime Minister Lecornu’s abrupt resignation, which reignited concerns about rising fragmentation risk in the euro area.

Meanwhile, the U.S. dollar held firm, balancing safe-haven demand against uncertainty surrounding a potential U.S. government shutdown, leaving its directional bias muted.

Market impact: Bullish for the USD, bearish for the JPY and EUR; volatility likely to stay elevated as fiscal and political narratives drive global FX sentiment.

The USD surged broadly, with EUR/USD down around 0.6–0.7% daily and USD/JPY climbing above 150 after the yen posted its biggest one-day drop in nearly five months.

The move reflects widening policy divergence, as Japan’s dovish stance contrasts with firm U.S. yields and safe-haven flows into the dollar.

Market impact: Bullish for the USD, bearish for the JPY and EUR; intervention risk from Tokyo may rise if yen weakness persists.

The People’s Bank of China (PBOC) set the USD/CNY reference rate at 7.0925 for Friday's trading session, compared to the previous day's fix of 7.0989 and the Reuters estimate of 7.0927.

The People’s Bank of China (PBOC) set the USD/CNY central rate for the upcoming trading session on Wednesday at 7.1148, compared to the previous day's rate of 7.1112.

The People’s Bank of China (PBOC) set the USD/CNY central reference rate for Friday's trading session at 7.1124, compared to the previous day's fix of 7.1280.

The People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Thursday at 7.1280, compared previous day's fixed rate of 7.1216.

The People’s Bank of China (PBOC) set the USD/CNY central reference rate for Tuesday's trading session at 7.1249, compared to the previous day's fix of 7.1139 and Reuters' estimate of 7.1245.