USD back at lows as markets extend relief rally
The major volatility seen across markets so far in 2025 looks to have been mostly shrugged off as the US’s tech-focused Nasdaq 100 ended at an all-time closing high overnight.
US shares continued their rebound this week with the S&P 500 up 1.1% and the Nasdaq climbing 1.4%. The S&P 500 is less than 1.0% from all-time highs.
In FX markets, the US dollar was lower, with the USD index falling back to three-year lows.
The biggest losses for the USD were against safe havens like the Japanese yen and Swiss franc.
The AUD/USD gained 0.5%.
USD/SGD edges lower as Fed signals split views on rate path
Overnight, Federal Reserve chair Jerome Powell refused to open the door to impending rate cuts at his closely watched testimony to the US Congress.
That said, recent remarks from Fed Governor Waller and Vice Chair Bowman reveal just how divided the central bank is. According to June’s projections, eight FOMC members expect two rate cuts in 2025, while seven anticipate no change at all.
The split highlights a deeper question: should the Fed stick to its “data dependent” approach, in place since 2022, or return to a more “forward-looking” model?
Chairman Powell has stressed the latter—but critics argue this mindset delayed the start of rate hikes back in March 2022.
Across Asia the US dollar was weaker, falling against the Singapore dollar, and retreating from 1.2869.
The USD/SGD is now just 0.5% above its decade low of 1.2763, recorded on 12 June.
The USD/CNH also fell as it hit 10-month lows.
Kiwi rebounds as Trump touts Middle East ceasefire deal
US President Donald Trump took to Truth Social to announce that Israel and Iran had agreed to a provisional ceasefire, set to begin at midnight Monday in Washington.
“I want to congratulate both Israel and Iran for showing the stamina, courage, and intelligence to end what should be called ‘The 12-Day War,’” Trump posted, adding that he expects the plan to succeed.
However, hostilities have continued between Israel and Iran although markets have remained more positive. Oil prices extended their decline following the announcement.
The New Zealand dollar bounced off the 200-day EMA of 0.5890 mark and is now nearing a close above 21-day EMA at 0.6000, suggesting upward momentum may be building.
Greenback back at lows
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 23 – 28 June
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.
