The New Zealand dollar (NZD) fell on all fronts on Friday. NZD/USD is down 1.4% and NZD/JPY dropped 1.2%, while GBP/NZD is up 1.3%.

USD/MXN dropped to $17.5, the lowest in six years, because of the divergence between the USA’s and Mexico’s monetary policies. The Fed may stop the tightening cycle with the main rate remaining at 4.25% while Banxico raised rates to 11.25%.

A surprising surge in WTI crude helped the Canadian dollar jump despite a downtrend. CAD/CHF is up 1.5%, CAD/JPY jumped 1.05%, and USD/CAD fell 0.7%.

The Australian dollar strengthened after the Reserve Bank of Australia unexpectedly lifted the interest rate by 25 bps from 3.6% to 3.85%. The central bank went against market estimates of a pause, citing inflation as still too high. AUD/JPY is up 1.3% and AUD/USD rose 1.17%, while EUR/AUD is down 0.9%.

The Japanese yen declined on all fronts as Tokyo core inflation jumped from 3.2% to 3.5% and the BoJ left interest rates unchanged at -0.1%. USD/JPY jumped 1.3%, and NZD/JPY, GBP/JPY, along with EUR/JPY are up 1%.

The Australian annual inflation rate fell from 7.8% to 7% in Q1 2023. Despite good news, the Australian dollar declined on all fronts. EUR/AUD jumped 1.1%, AUD/JPY fell 0.6% and AUD/USD is down 0.36%.

The New Zealand dollar (NZD) fell on all fronts on Friday. NZD/USD is down 1.4% and NZD/JPY dropped 1.2%, while GBP/NZD is up 1.3%.

The annual inflation rate in India dropped from 5.6% in March to 4.7% in April. Brazil’s inflation fell from 4.6% to 4.1%. However, inflation in Spain accelerated from 3.3% to 4.1%, and France’s inflation jumped from 5.7% to 5.9%.

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The Bank of England followed market forecasts and increased the interest rates by 25 bps from 4.25% to 4.5%. This pushed borrowing costs to new heights not seen since 2008, as inflation still sits at double digits.

While the rest of the world still experiences relatively high inflation, China is close to deflation. China’s annual inflation rate dropped from 0.7% in March to 0.1% in April. The Netherlands’ inflation accelerated from 4.4% to 5.2%. Inflation in the Czech Republic fell from 15% to 12.7%. Inflation in Australia jumped from 4.6% in April to 5% in May. 

The US Department of the Treasury and the IRS have filed 45 claims against the defunct crypto exchange FTX and its affiliates, totaling $44 billion. Alameda Research LLC was hit with a $20.4 billion tax bill from the IRS for payroll and partnership taxes. They also sued Alameda Research Holdings for over $17 billion.