According to analysts, several factors, including shipping disruptions in the Strait of Hormuz, triggered by the war involving the U.S., Iran and Israel, have added pressure to the Indian currency

Rupee opened at 92.16 and touched an intraday high of 91.30 against the dollar

Seoul shares plunged over 12 percent Wednesday to close below the 5,100-point mark amid growing concerns over the economic fallout from the Middle East conflict. The Korean won fell sharply against the U.S. dollar. The Korea Composite Stock Price Index extended its losses, tumbling 698.37 points, or 12.06 percent, to close at 5,093.54, following a plunge of over 7.24 percent the previous session. The Korea Exchange triggered circuit breakers shortly after the KOSPI fell more than 8 percent amid

FII outflows and a fall in the domestic equity markets further pressured the local unit, according to forex traders

The Japanese yen has recovered against the U.S. dollar as traders anticipate potential policy shifts from the Bank of Japan (BOJ).

At the interbank foreign exchange, the rupee opened at 90.94 against the greenback and traded in a narrow range through the session before settling at 90.96 (provisional), down 1 paisa from its previous close

The U.S. dollar has been lifted by reduced expectations for interest rate cuts.

Like other stablecoins, USD1 is backed by reserves of U.S. dollars and cash-like securities so that ‌its market price stays close to the benchmark ​of $1

Treasury Secretary Scott Bessent admitted that Washington helped spark recent protests in Iran by creating a U.S. dollar shortage, leading to runaway inflation.

A strong opening in domestic equity markets, along with a jump in forex reserves, provided further support to the local unit, according to forex traders

ECB Quietly Prepares Global Liquidity Backstop As Euro Debt Wave Builds Submitted by Thomas Kolbe Starting in the third quarter of 2026, new rules will apply to the so-called euro repo facility. Central banks worldwide will be able to post up to €50 billion in euro-denominated collateral, such as government bonds, with the ECB in order to obtain euro liquidity from the central bank in cases of acute need. The goal is to guarantee the permanent availability of euro liquidity, replacing the previously time-limited repo lines. Central banks typically resort to this monetary policy instrument during phases of acute liquidity stress — most recently during the COVID lockdowns. The repo facility counts among the central banks’ immediate crisis tools. The so-called EUREP (Eurosystem Repo Facility for Central Banks) was launched on June 25, 2020, as a short-term liquidity solution for associated central banks: the Central Bank of Kosovo drew €100 million, Montenegro €250 million in short-term liquidity assistance. Repo auctions generally involve the exchange and short-term pledging of European government bonds for maturities of one to five days, which commercial banks deposit at the central bank in return for liquidity. The collateral is returned after a short period, and the so-called bank reserves are withdrawn again once the liquidity problem has been resolved and the interbank market is functioning properly. The ECB’s announcement that it will now offer this instrument globally — and over periods of several weeks or even months — raises eyebrows. It suggests that the monetary guardians of the Eurosystem may be anticipating a liquidity crisis in the not-too-distant future. Euro as a Reserve Currency The drastic expansion of sovereign debt within the eurozone system may explain why concerns are deepening at the ECB tower. If the two pillars, Germany and France, are each calculating net new borrowing of five percent this year alone — thereby placing a steadily growing volume of bonds on the markets — this generates palpable upward pressure on interest rates. At the same time, investors are asking how strongly the creditworthiness of individual euro states ultimately depends on Germany’s ability to service the mounting debt — a pressure that is manifesting itself in markets. Interest rates have already been rising for more than three years, particularly at the long end of the bond market. This suggests that confidence among large investors, who traditionally provide the bulk of liquidity in this market, is gradually eroding. Meanwhile, the euro is under pressure internationally: euro-denominated reserves currently account for less than 20 percent of global bank reserves and show a slight downward trend. Similar developments can be observed in the settlement of international transactions, where the euro holds roughly a 24 percent share. The dominant global actor remains the U.S. dollar, both as a reserve currency with a 59 percent share and in the settlement of international transactions at 47 percent. Against this backdrop, it becomes clear that Europe’s monetary authorities are facing an increasingly challenging combination of rising debt, growing interest rates, and a global environment that does not accord the euro the status of the U.S. dollar — factors that pose serious questions for the Eurosystem’s stability and liquidity. A severe blow to the euro’s international role was the European Union decision to permanently implement the Russia embargo and halt trade in Russian oil and gas. Russia had been among the few major energy market players willing to allow euro denomination and thus held substantial reserves. That era is over. However, rumors are circulating that the United States, in the event of a peace settlement in Ukraine, could restore Russia’s access to the SWIFT system. Would the EU then follow suit? A return to the status quo ante might require a different political regime in Brussels and Berlin. Growing Debt Volume A fiscal policy U-turn within the EU is also under discussion. Should member states agree on a “two-speed Europe” and implement joint financing of new debt via so-called Eurobonds, this would place the European bond market on an entirely new footing in terms of both volume and structure. European taxpayers — above all the still relatively less indebted Germans at the federal level — would then stand behind the credit guarantees. In Frankfurt, such a revolutionary step is expected to deliver a massive boost in global demand for euro-denominated bonds. One unknown in the geopolitical power struggle remains the Federal Reserve. On several occasions last year, the ECB warned of a possible shortage of U.S. dollars within the European banking system. The United States holds a powerful lever here: it can drive up the political price of bridging potential illiquidity through rapid swap lines — short-term loans within the dollar system to European banks and the ECB. Oversupply of Euro Bonds The Eurosystem thus faces immense absorption problems. If global demand for EU debt — that is, euro bonds — cannot be generated, interest rates will continue to rise. In light of the massive issuance wave of new euro sovereign bonds, the ECB would be forced to take this debt onto its own balance sheet to keep debt servicing in member states under control. The expansion of the repo facility into a permanent liquidity backstop therefore appears plausible. Global central banks would have an incentive to accumulate a growing share of euro bonds. Moreover, the volume would be available to gain direct access to the Eurosystem without assembling a portfolio of bonds from individual states. Germany’s relatively low debt level had in fact recently been a problem, as insufficient tranches of German federal bonds were available for larger capital allocations. Chancellor Friedrich Merz and his finance minister are currently eliminating this issue with their present debt policy. The ECB’s measures thus fit into a broader fiscal policy development that could culminate in a structural expansion of joint debt. By institutionally safeguarding international demand for euro bonds, the central bank is creating the infrastructural preconditions for a potential new debt regime within the European Union — while simultaneously shifting the boundary between monetary stabilization and fiscal support of state budgets. The European repo facility, once conceived as a rescue umbrella for liquidity problems, is gradually evolving into a classic, expanding debt pool. With eurozone government debt likely to rise from the current 92 percent of GDP to around 100 percent over the next two years, pressure on the ECB to devise mechanisms for distributing this flood of debt across global bond markets will intensify. Whether this succeeds appears highly doubtful given the euro economy’s chronic economic weakness. * * *  About the author: Thomas Kolbe, a German graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination. Tyler Durden Fri, 02/20/2026 - 08:30

Sugar prices have slipped, a movement attributed to the strengthening of the U.S. dollar.

Déjà vu all over again for the U.S. dollar  TradingView

China cuts Treasury holdings: A shift away from the U.S. dollar?  Tehran Times

Also in today’s newsletter: UK proposes audit changes to attract Chinese listings, and Japan reports weak GDP data

The U.S. dollar experienced a modest increase in value during a period of reduced trading activity due to holidays.

Forex traders said that the negative domestic equity markets and withdrawal of foreign funds resisted the rupee's upward move despite a retreating American currency

The Indian currency slumped 56 paise to close at its all-time low of 92.05 against the U.S. dollar on Wednesday

Forex traders said the domestic currency is under severe pressure due to a sharp spike in crude oil prices, with Brent Crude crossing the $82 per barrel level in futures trade in the wake of the Iran crisis

At the interbank foreign exchange, the rupee opened at 91.23 and touched the intraday low of 91.65 against the dollar

The Sensex dropped 364.62 points to 81,883.99 in early trade, while Nifty declined 117.15 points to 25,379.40

A positive start to the session at the domestic equity markets lent further support to the local unit

Foreign Institutional Investors offloaded equities worth ₹102.53 crore, according to exchange data

The U.S. dollar has gained strength as market participants diminish their bets on imminent interest rate cuts, reflecting a shift in economic outlook.

A poor start to the domestic equity markets further pressured the local unit, but FII inflows provided support, preventing a sharp fall, forex traders said

The Indian Rupee gained 7 paise to close at 90.87 against the U.S. dollar, with foreign fund outflows and geopolitical concerns capping further gains for the local currency.

Financial advisors are reportedly bolstering client portfolios as the U.S. dollar experiences a period of weakening, prompting strategic adjustments in investment approaches.

Gold is set to record a weekly loss as the U.S. dollar continues to advance, impacting the precious metal's value.

The U.S. dollar is on the rise as currency traders increase bets that the Federal Reserve will implement fewer interest rate cuts than previously expected.

ING analysts suggest that the 'Sell America' trade has inflicted 'lasting damage' on the U.S. dollar, indicating a significant shift in currency market dynamics.

New restrictions on stablecoin yields under the CLARITY Act are predicted to potentially benefit foreign currencies at the expense of the U.S. dollar.

Donald Trump is reportedly reversing trades he previously advocated as oil prices, bond yields, and the U.S. dollar experience significant surges.

Forex traders said the dollar index crossed 98 levels on the risk-off situation prevailing all around the globe amid the U.S.-Iran crisis, further pressurising the rupee

At the interbank foreign exchange, the rupee opened at 91.23 and declined further to 91.29 against the greenback in initial deals, trading 21 paise down from its previous closing level

The Chinese Yuan has strengthened to a 35-month high as the U.S. dollar continues to fall, reflecting shifts in global currency markets.

Market strategists were weighing in on President Donald Trump’s State of the Union address late Tuesday and coming away with some important implications for the U.S. dollar.

The U.S. dollar gained strength as expectations for imminent interest rate cuts diminished.

A sharp fall in domestic equity markets and uncertainties over the India-U.S. trade deal further pressured the local unit, while foreign fund inflows lent some support, forex traders said

Citi suggests that India may purchase U.S. dollars for its reserves if the Indian Rupee continues to strengthen.

The value of the American dollar fell in Asia on Monday following unrest and confusion surrounding US tariffs. Uncertainty increased after the US Supreme Court overturned President Donald Trump's tariffs. Trump announced

The U.S. dollar has weakened after the Supreme Court rebuffed President Trump's tariff policies, leading to market reactions.

The U.S. dollar has reached its strongest position in almost a month, driven by factors beyond just tensions with Iran.

The U.S. dollar is being bolstered by the underlying strength of the American economy.

Eric Trump and Donald Trump Jr. told CNBC on the sidelines of the World Liberty Forum to explain why they think the U.S. needs an alternative to the dollar.

The U.S. dollar strengthens as geopolitical tensions lead to a risk-off sentiment among investors.

The U.S. dollar experienced a modest increase in value during a period of reduced trading activity due to holidays.