The global exchange board showed mixed signals on Thursday, as major economies responded to ongoing macroeconomic pressures and interest rate speculation. The latest figures from the Daily Exchange Index reflect a slight dip in the value of the US dollar, while the British pound maintained relative strength against a backdrop of economic uncertainty.
Key Rates – 22 May 2025
Region |
Exchange Index |
Movement |
US |
1593.75 | ▼ Down from 1610.97 (20 May) |
UK |
2135.45 | ▼ Slight drop from 2151.32 |
EU |
1807.20 | ▼ Minor fluctuation from 1809.10 |
China |
221.51 | ▼ Gradual decline from 223.13 |
Source: Google Finance / estimated is done based on the data from the source
US Dollar Weakens Amid Fed Caution
The US dollar slid for the third consecutive day, closing at 1593.75 on 22 May, down from 1610.97 on 20 May. The fall reflects market uncertainty ahead of a potential interest rate pause by the Federal Reserve, as inflation shows signs of easing but remains above the 2% target.
Traders and investors appear to be adjusting their portfolios accordingly, with many shifting to euro- and pound-denominated assets for short-term hedging.
Sterling Retains Strength Despite Minor Dips
The British pound (GBP) maintained its recent gains, closing at 2135.45, down slightly from 2151.32 on 20 May. Analysts attribute the pound’s relative strength to Bank of England statements pointing to continued monetary tightening, even as other central banks ease off.
Euro Shows Stability, China Yuan Eases Slightly
The euro (EUR) experienced marginal movement, ending at 1807.20, nearly unchanged from earlier in the week. European markets remain cautious ahead of the European Central Bank’s inflation review due next week.
Meanwhile, the Chinese yuan posted a slight decline to 221.51, down from 223.13, with markets responding to news of muted export growth and weaker domestic consumption data.
Market Outlook
Currency watchers suggest that volatility may increase into June, especially as US debt ceiling talks, UK inflation reports, and ECB monetary updates are scheduled in quick succession.
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