US Dollar
1. Warsh's nomination for Federal Reserve Chair was approved by the Senate Banking Committee.
2. US Treasury Secretary: The UAE and several other countries have requested currency swap lines; these swap lines are not bailouts.
3. Fed April meeting—interest rates remained unchanged as expected; three voting members voted against the statement's wording, which hinted at further rate cuts; Milan, however, wanted a 25 basis point cut. Powell confirmed he will remain on the board after stepping down as chairman, stating he will leave at the appropriate time and will not become a "shadow chairman."
Euro
1. French economic growth unexpectedly stalled due to the situation in Iran.
2. French inflation exceeded expectations in April, returning above the ECB's target.
Japanese Yen
1. The US dollar rose to its highest level against the Japanese yen (USD/JPY) since July 2024.
2. Bank of Japan: High oil prices and a weak yen may keep core inflation at around 3% for two consecutive years.
Other
1. Hong Kong Monetary Authority kept its benchmark interest rate unchanged at 4%.
2. The Iranian rial fell to a record low. 3. The Central Bank of Brazil lowered its benchmark interest rate to 14.50%.
4. The Indonesian rupiah hit a record low, increasing pressure on the Indonesian central bank to raise interest rates.
5. Hungarian Central Bank Governor Varga: Inflation may exceed 5% in the second half of 2026.
6. A South Korean central bank official: Will take action to stabilize financial markets if necessary, and is monitoring the Middle East conflict.
7. The Bank of Canada kept its benchmark interest rate unchanged at 2.25% for the fourth consecutive meeting, in line with market expectations.
8. The Asian Development Bank (ADB): Assuming continued energy disruptions, Asia-Pacific growth will slow to 4.7% in 2026. Inflation in the Asia-Pacific region is projected to rise to 5.2% in 2026, compared to a forecast of 3.6% under an earlier stable scenario.
