The Fed raises rates. What changes for the dollar?
September’s US rate increase puts the dollar’s income advantage back in focus. The next question is how much of that advantage markets already expected.
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The euro faces a rate increase and an energy shock
The ECB has tightened policy while energy costs complicate Europe’s growth outlook. For euro investors, higher rates and weaker purchasing power pull in different directions.
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Japan’s 1.25% policy rate changes the yen funding equation
The Bank of Japan’s September decision raises the cost of using yen as a funding currency. Carry positions still depend on exchange rates, financing terms and volatility.
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Sterling after the Bank of England’s divided hold
The Bank of England kept its rate unchanged in September, but three members preferred an increase. The split matters because currencies respond to the expected policy path.
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EUR/GBP turns attention to the gap between policy paths
September brought an ECB increase and a Bank of England hold. EUR/GBP isolates that European policy comparison without making the dollar the direct counterpart.
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EUR/JPY shows why two rate increases can tell different stories
The ECB and the Bank of Japan both tightened in September. Their decisions still carry different implications for financing, inflation and the relative currency outlook.
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AUD/NZD puts Australia and New Zealand’s rate paths side by side
Australia and New Zealand have both tightened policy, but from different levels. Their currency cross makes relative domestic conditions the central question.
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EUR/CHF balances interest income against demand for the franc
A positive euro policy rate and a zero Swiss rate make the income comparison look simple. Currency demand and possible intervention complicate the result.
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Brazil’s rate cut puts the real’s yield cushion in perspective
Brazil’s September Selic reduction leaves a high nominal rate in place. The currency question is how that income compares with inflation, fiscal risk and financing costs.
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Mexico’s 6.50% hold leaves the peso watching two economies
Banco de México kept its policy rate unchanged in September. Peso exposure still requires a view on domestic conditions and the changing US policy backdrop.
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India’s October rate increase puts the rupee’s inflation test in focus
The Reserve Bank of India raised its repo rate in October and changed its policy stance. For rupee exposure, the response to inflation matters alongside growth and capital flows.
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South Africa’s rate increase puts rand income and growth in tension
The South African Reserve Bank raised its policy rate to 7.25% in September. The rand’s income appeal must be weighed against inflation and a weaker growth outlook.
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The RBA’s 4.60% decision raises the bar for Australian demand
Australia’s September rate increase responds to inflation pressure while activity is slowing. The currency effect depends on whether tighter policy restores balance without a larger growth cost.
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New Zealand’s 2.75% OCR sharpens the focus on policy guidance
New Zealand raised its official cash rate in September. Investors now need to distinguish a confirmed decision from assumptions about the pace of future tightening.
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The SNB holds at zero while keeping currency policy in view
Switzerland’s September hold shows why foreign exchange analysis needs more than a policy rate comparison. The SNB’s assessment also includes the exchange rate itself.
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Canada’s 2.25% hold highlights the loonie’s competing forces
Canada left rates unchanged in September as energy costs and trade uncertainty complicated the outlook. The Canadian dollar must balance income, growth and external demand.
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