Yuan

Beijing challenges US financial dominance across currency, messaging and settlement systems; even if Iran sanctions ease and dollar trust recovers, the yuan push will persist for future crises

As Iran crisis disrupts key trade routes, China's expanded payment system now offers a pathway to settle transactions outside the dollar system, though its scale remains limited

China is stepping up efforts to boost the yuan's global role as President Xi Jinping calls for wider use of the currency in trade, investment and foreign exchange markets

China will establish an international operation centre for e-CNY in Shanghai, People's Bank of China Governor Pan Gongsheng said

To curb overreliance on a single currency, China is pushing for a multi-polar currency system with the digital renminbi at its centre

At 1140 GMT, the rouble was up 2% at 81.1 against the U.S. dollar, LSEG data based on over-the-counter quotes showed

The payments, which require the firms to convert yuan into Hong Kong dollars, are set to rise to $36.1 billion for the April-to-June period

The Reserve Bank of India was ready to let the rupee weaken in line with the yuan after Donald Trump won US elections last year. The yuan has declined about 0.6 per cent against the dollar this month

The rupee fell by 0.5 per cent to settle at 86.26 per dollar, against the previous close of 85.86 per dollar. The Indian unit weakened 0.6 per cent on Monday

The onshore yuan fell to its weakest level since September 2023 as Beijing signals policy shift to support exporters and counter US trade pressure

Canadian dollar, Mexican peso down after Monday rebound

Investors' focus will be the Federal Reserve's policy this week. The Fed is widely expected to make no changes to the policy rate and no new projections on inflation and rates are due at this meeting

The rupee may touch the 86-per-dollar mark in the short term, said Jigar Trivedi, a senior analyst at Reliance Securities, who recommends buying the dollar-rupee pair on every dip

The RBI's frequent interventions have supported the rupee in the face of multiple headwinds, including a hawkish shift in the Federal Reserve's outlook for policy rates over 2025, concerns about India

The rupee had settled at Rs 84.80 per dollar on Friday

A decline in the yuan and elevated US bond yields had weighed on the rupee through the session and the currency declined further after the trade data was released

China's 10-year and 30-year sovereign bond yields fell over 4 basis points each to record lows of 1.7650 per cent and 1.9950 per cent, respectively

Peter Navarro, Trump's new senior counselor for trade and manufacturing, said White House would not interfere with the Treasury's review to see foreign trade partners are not manipulating currencies

Asked about the potential for the Trump administration to try to weaken the dollar's value through a new version of the 1985 Plaza Accord, Yellen said that the Biden administration believes it's best

Letting the yuan depreciate could make Chinese exports cheaper, thus blunting the impact of tariffs, and creating looser monetary settings in mainland China