Written by Steven Dooley, Head of Market Insights, and Shier Lee Lim, Lead FX and Macro Strategist
Aussie, kiwi touch two-week lows
The Australian and New Zealand dollars led FX markets lower yesterday as growing fears of a potential US strike on Iran caused global markets to fall.
Tokyo’s Nikkei sharemarket index fell 1.0%, London’s FTSE 100 lost 0.6%, and Frankfurt’s DAX dropped 1.1%. Brent crude oil gained 2.8%. US markets were closed for the Juneteenth national holiday.
The AUD/USD declined 0.5% to its lowest level since 3 June. The NZD/USD fell 0.7% to its lowest point since 2 June.
The US dollar rose in most other markets, with the most significant gains seen against regional Asian currencies.
The USD/SGD gained 0.2%, while the USD/CNH fell 0.1%.
GBP, CHF higher after central bank decisions
The British pound was one of the few outperformers overnight after the Bank of England kept interest rates on hold and indicated that any future rate cuts would likely be gradual. UK inflation for May came in slightly above expectations, with the headline annual rate at 3.4%. (The BoE’s inflation target is 2.0%.)
In contrast, the Swiss National Bank cut rates from 0.25% to 0.00% — a return to the zero-interest-rate regime that seemed unthinkable two years ago.
Despite the SNB’s swift rate cuts, the Swiss franc has remained strong, reaching a 10-year high versus the USD thanks to the Swissie’s safe-haven appeal.
The AUD/CHF fell to all-time lows in April during heightened US tariff concerns but has since regained around 5.0% from those lows.
MYR, PHP, VND hit by geopolitical worries
Rising geopolitical tensions triggered losses across Asia, with the steepest declines seen in Southeast Asia.
Most notably, the Philippine peso has fallen sharply—down 2.3% versus the US dollar this week—as the USD’s rebound weighed heavily on the PHP.
The Vietnamese dong has also weakened, falling to an all-time low against the US dollar this week. The VND remains under pressure due to concerns over trade, with Vietnam initially facing some of the steepest tariffs after President Trump’s “Liberation Day” announcement.
The Malaysian ringgit was also weaker, with both the USD/MYR and SGD/MYR near one-month highs.
USD extends recent gains
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 16 – 21 May
Have a question? [email protected]
*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
