Hubpay FX Weekly Report - 25th February 2025

Overview: The global currency market saw risk currencies rise this week, fueled by improved sentiment and a weaker US Dollar. Among the most significant gains, the Japanese Yen soared above 150 against the dollar for the first time since December. Key economic developments from Europe to Asia continue to shape market trends, with data from the US and Canada expected to drive future movements.

Key Points and Statistics by Region

US Dollar:

• US Dollar Index fell by 0.55%, marking an 11-week low.
• US business activity stagnated, and consumer sentiment weakened.
• Focus is on the PCE Price Index and US GDP growth data this week.

Asia-Pacific:

• Renminbi: Rose by 0.2%, trading at 7.237 against USD, bolstered by Alibaba’s $52B investment in AI and cloud.
• Japanese Yen: Gained 1.85%, reaching 149.3 against USD, driven by stronger-than-expected inflation data and expectations for rate hikes by the Bank of Japan.
• Australian Dollar: Increased by 0.25%, supported by a hopeful trade deal between the US and China.

South Asia:

• Indian Rupee: Strengthened to 86.67, up 0.1% on the week.
• Pakistani Rupee: Weakened by 0.2%, ending at 279.5 against USD.

Middle East & Africa:

• Nigerian Naira: Rose by 0.25%, closing at 1499 due to a drop in inflation to 24.48%.
• Kenyan Shilling: Weakened by 0.3%, ending at 129.58.
• South African Rand: Held steady at 18.31, supported by rising gold prices despite political uncertainty.

Europe:

• Sterling: Increased by 0.35%, closing at 1.263 USD per GBP, supported by stronger-than-expected consumer spending and wage growth.
• Euro: Rose 0.25%, ending the week at 1.047 USD, buoyed by the CDU/CSU victory in Germany’s election and hopes for reform.

The FX markets are evolving with mixed signals across regions, as economic data and geopolitical developments shape future trends. Stay updated on key market movements and forecasts by subscribing to our full weekly FX newsletter on our website.

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