From Australian and New Zealand dollars, to the Indian rupee, the pound sterling, the dollar, the euro and many other currencies, the foreign exchange market is animated by several indicators.

The Australian and New Zealand dollars headed for a second straight week of losses on Friday as the US dollar resurgent, in part under the pressure of a sudden drop in the Chinese yuan. Both held on to their gains on a struggling yen, while the Aussie hit a four-month high against its Kiwi cousin as the outlook for interest rates in Australia and New Zealand diverged

Aussie fell 0.6% to $0.6527, following a significant drop in the Chinese yuan, which was put under pressure by the expectation of impending political easing. It slid by 0.3% overnight, unable to maintain a recovery following a surprisingly strong local employment report, while the US dollar appreciated widely due to low unemployment claims

Kiwi fell 0.5% to $0.6013, a 4-month low, and is expected to see a weekly loss of 1.2%.

The rupee was at 83.3450 against the US dollar at 10:00am IST, down 0.2% from its close at 83.1475 the previous session.

The dollar index rose 0.2% to 104.21, its highest level in over three weeks after U.S. economic data signalled continued strength from the world's largest economy.

The offshore Chinese yuan fell to its lowest level in over four months, at 7.26, prompting public banks to step in to defend the currency.

The US dollar was ready for a second week of major gains on Friday, with even a rate hike in Japan failing to dislodge it, as investors believed that US rates were high and not falling yet.

The franc, which in real terms has been rising for years, fell by more than 1% overnight to 0.8894 per dollar, its lowest level in four months, and slid to a nine-month low against the euro, bringing it closer to parity.

The dollar/yen is up 1.6% this week and close to the levels that motivated Japanese intervention in 2022, making investors nervous but also looking for other currencies to buy and pocket the “carry”, or the difference in interest rates.

The euro/yen hit its highest since 2008 this week at 165.37 and the Aussie rose above 100 yen for the first time since 2014.

Against the dollar, the euro slid by around 0.2% this week to the middle of a range that it had maintained for a year at $1.0862.

Sterling fell overnight after the Bank of England left interest rates unchanged, this time supported by the two hawkish members of the committee who had previously voted for a hike. For the week, the pound was down 0.6% to $1.2661

Bitcoin is eyeing its biggest weekly drop since January, as crypto markets took a step back after a powerful rally this week — even though they will trade until Sunday. It was the last one at $65,800.