From Financial Modeling Prep: 2025-02-18 01:46:38

1. U.S. Dollar Rebounds Amid Tariff Uncertainty

   The U.S. Dollar Index (DXY) rose 0.2%, recovering from last week’s 1% decline. Traders are flocking to safe-haven assets amid fears of an escalation in global trade tensions. Analysts expect substantial tariffs in Q2 2025, boosting dollar demand.

2. RBA Cuts Interest Rates to 4.10%

   The Reserve Bank of Australia (RBA) delivered its first rate cut in over four years, lowering interest rates to 4.10%. Underlying inflation at 3.2% (Q4 2024) suggests faster-than-expected disinflation. The RBA is cautious on further easing, balancing economic support with inflation control.

3. Asian Currencies Decline Amid Tariff & Rate Pressures

   Asian currencies extended losses as the U.S. dollar rebounded, fueled by tariff concerns and higher U.S. interest rate expectations. China’s yuan (USD/CNH) rose 0.2% offshore, while the Japanese yen (USD/JPY) reacted to strong economic data. Central banks may respond with policy adjustments to stabilize currencies.

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