Analysis: Currencies

Sterling recovers some BoE-led losses, politics loom large

The pound rose on Friday, recovering some of the previous day's steep slide that followed a surprisingly tight vote from the Bank of England to leave rates unchanged and its signal that it could cut...

ECB policymakers fret over risk of too-low inflation

European Central Bank policy is right for the current inflation outlook but risks remain that price growth might weaken excessively and the ECB must be ready to act if these materialise, ECB...

ECB's Escriva sees interest rates stable

ECB policymaker Jose Luis Escriva told Spanish radio station Cadena SER he expected interest rates to remain steady in the foreseeable future as inflation expectations were anchored around the...

Japan Q4 GDP seen returning to growth on robust investment

Japan's economy is expected to have returned to growth in the final three months of 2025, thanks to vigorous corporate investment and resilient consumption, a Reuters poll showed on Friday. ...

Rupee logs best week in over three years on US trade-pact boost

The Indian rupee fell on Friday, singed by likely dollar outflows and traders lowering long bets, but posted its best rise in over three years after New Delhi and Washington announced a long-awaited...

Former Japan currency chief says FX intervention should be backed by rate hikes

Currency intervention using Japan's foreign exchange reserves can deliver an immediate jolt to markets, but its impact would be more durable if accompanied by steady rate hikes, a former top currency...

BOJ policymaker calls for timely rate hike to manage inflation

The Bank of Japan must raise interest rates in a timely fashion to prevent underlying inflation from surpassing its 2% target, central bank board member Kazuyuki Masu said on Friday, keeping alive the...

Dollar set for strongest week since November, yen steadies before polls

The U.S. dollar steadied near a two-week high on Friday, poised for its strongest weekly performance since November as a rout in stocks driven by AI-spending concerns rattled investors, while the yen...

Canada rolls back EV regulations but boosts incentives

Canadian Prime Minister Mark Carney said on Wednesday his government was scrapping a national electric-vehicle sales mandate, while boosting incentives for EV purchases and charging. ...

Bessent says up to Trump whether Warsh might be sued over policy choices

U.S. Treasury Secretary Scott Bessent on Thursday declined to commit that the Trump administration would not sue Kevin Warsh, its nominee to lead the Federal Reserve, if he follows a monetary path...

ECB to widen access to euro loans in bid to boost global role, sources say

The European Central Bank is working on opening up access to euro liquidity to more countries, making it cheaper and easier to obtain as part of efforts to bolster the international role of the single...

Bank of Canada says economic restructuring will take years, tells firms to 'be bold'

Restructuring the Canadian economy to cope with U.S. tariffs, slower population growth and the rise of artificial intelligence will take years, and could be painful, Bank of Canada Governor Tiff...

Traders bet the ECB will stick with steady rates, keeping one eye on the euro

Euro zone markets remained confident on Thursday in the view that the European Central Bank would likely hold interest rates steady for the rest of the year, with euro strength likely remaining in the...

In another climate retreat, Canada scraps EV sales mandate

Canadian Prime Minister Mark Carney said on Wednesday his government was scrapping a national electric vehicle mandate, marking another retreat from climate measures after previously dropping both an...

BoE's Bailey welcomes Warsh as Trump's choice to lead U.S. Fed

Bank of England governor Andrew Bailey on Thursday welcomed U.S. President Donald Trump's choice of former Federal Reserve Governor Kevin Warsh to head the U.S. central bank when Jerome Powell's...

Snowstorms boost US weekly jobless claims; job openings hit more than five-year low

The number of Americans filing new applications for unemployment benefits increased more than expected last week amid winter storms, and while job openings fell to a more than five-year low in...

ECB leaves rates unchanged, shrugs off inflation dip

The European Central Bank left interest rates unchanged as expected on Thursday, shrugging off a dip in inflation while continuing to warn about an uncertain geopolitical environment. ...

Statement from the ECB following policy meeting

Following is the statement from the European Central Bank following its policy meeting. The Governing Council today decided to keep the three key ECB interest rates unchanged. ...

Bank of England votes narrowly to hold rates but signals reduction ahead

The Bank of England kept interest rates on hold on Thursday, but only after an unexpectedly narrow 5-4 vote, and said borrowing costs are likely to fall if an expected drop soon in inflation is...