CNY Strengthens Post-Holiday, Central Parity Rate Markedly Revised Higher USD/CNY central parity rate: 6.8562, up 66 basis points, CNY appreciated. Core logic: Rising expectations for domestic economic recovery, coupled with short-term USD pressure, pushed the RMB stronger against a basket of currencies.

 

Fed “Higher Rates for Longer” Expectations Rise; US Dollar Index Consolidates Steadily US Dollar Index: 98.50, trading in a narrow range. Key signal: Multiple Fed officials highlighted sticky inflation, pushing rate cut expectations from June to September. Stabilized U.S. Treasury yields underpinned the dollar. Market focus: U.S. April nonfarm payrolls due Friday will directly shape the Fed’s policy path.

 

ECB June Rate Hike on the Cards; Euro Rebounds After Pressure EUR/USD: 1.1693, edged higher. Policy update: Bundesbank President Nagel stated clearly that a June rate hike is highly likely if inflation fails to improve, already priced in by the market.

 

**Yen Stabilizes Briefly After Japan’s $35B Intervention; Depreciation Pressure Remains** USD/JPY: Near 160.20. Intervention impact: The Bank of Japan intervened with around $35 billion last week to curb short-term yen weakness. Its easing policy remains unchanged, keeping depreciation pressure alive in the medium to long term.

 

AUD Leads Gains Among Non-Dollar Currencies, Driven by Rate Hikes & Inflation Expectations AUD/USD: 0.7229, up 0.64%. Event: The RBA raised interest rates for the third consecutive time as scheduled and sharply upgraded inflation forecasts, triggering a strong rebound in the Aussie.

 

Geopolitical Risks: Middle East Tensions Offer Mild Support to USD Safe-Haven Demand Developments: Military clashes between the U.S. and Iran in the Persian Gulf, with the UAE targeted; ceasefire agreements still hold. Safe-haven capital flowed moderately into dollar assets.