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Foreign exchange market: general decline in currencies

07/07/2025
Source : ORISHAS FINANCE
Categories: Economy/Forex

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On Monday, the US dollar was near its lowest level in several years, while the Australian and New Zealand dollars started an important week. The Turkish lira is stable, the yuan and the rupee are weakening

.

The US dollar hovered on Monday near its lowest level since 2021 against the euro and its lowest level since 2015 against the Swiss franc, with traders paying attention to any trade-related title in the countdown to President Donald Trump's tariff deadline. The dollar slid 0.1% to 0.7939 Swiss francs early Monday in Asia, returning to the July 1 low of 0.7869 francs, a level not seen since January 2015. It also fell by 0.1% to 144.49 yen. The dollar index, which measures the currency against these three rivals and three other major counterparts, remained steady at 96.967, sitting above Tuesday's nearly 3.5-year low of 96.373

.

The Australian and New Zealand dollars started an important week for central banks on the back foot, with investors preparing for American trade uncertainty that could persist for weeks now that there seems to be a delay in the implementation date of tariffs. The New Zealand dollar fell 0.4 percent to $0.6025, the lowest level in

nearly two weeks.

Aussie fell 0.5% on Monday to $0.6522, its lowest level in a week. Last week, the price ended up by only 0.3%, with strong resistance at an eight-month high of $0.6590. In Australia, it's an important week for central banks: Australia and New Zealand are preparing to announce their latest monetary policy decisions. Markets almost fully incorporated a cut in rates from the Reserve Bank of Australia on Tuesday, with a 95% probability.

The Indian rupee is about to start the week on a low note, under pressure from the decline of its Asian peers following comments from US President Donald Trump that higher tariffs could be restored by August if trade deals are not reached. The one-month undeliverable futures contract indicated an opening in the range 85.48-85.52, compared to 85.3925

in the previous session.

The Chinese yuan depreciated against the greenback on Monday as investors became cautious ahead of the deadline set Wednesday by US President Donald Trump to reach agreements on tariffs by US President Donald Trump to reach agreements on tariffs, looking for clues about the currency's short-term direction. The spot yuan opened at 7.1641 per dollar and was last trading at 7.1715 at 03:12 GMT, 62 pips less than Friday's late-trading close and 0.29% below the yuan's official midpoint. The offshore yuan was trading at 7.1721 yuan to the dollar, down by around 0.11% in Asian

trade.

La livre turque remained stable on Monday morning, after weakening overnight following the announcement of a increasing legal repression against the main opposition party. The pound hit a record high of 40 against the dollar on Sunday evening, during hours of low liquidity, and then strengthened to 39.9, stable from its close

on Friday.
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