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The Reserve Bank of Indian likely stepped into the foreign exchange market aggressively on Thursday, three traders told Reuters, likely aimed at shoring up the rupee, which fell to a record low in the previous session.The rupee was on track to open around the 92.10 per dollar level on Thursday, but minutes before the local spot market opened at 9:00 a.m. IST, it rallied sharply on the interbank order matching system to about 91.40 per dollar. Traders cited dollar sales from at least three state-run banks, most likely on behalf of the RBI. Source
Gold price (XAU/USD) extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East. The Iran conflict has entered its sixth day with US and Israeli strikes across Iranian territory and widespread Iranian missile and drone retaliation across the Middle East, including attacks on regional targets and military sites, prolonging the crisis and its impact.A US submarine reportedly sank an Iranian warship off the coast of Sri Lanka, escalating hostilities. US Defense Secretary Pete Hegseth called it the “first such attack on an enemy since World War II.” The…
GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average (EMA), with this week’s one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.Chancellor Rachel Reeves delivered her Spring Statement earlier this week, with the Office for Budget Responsibility (OBR) cutting its 2026 growth forecast to 1.1% from 1.4%, citing weaker-than-expected activity in late 2025 and rising unemployment. The OBR acknowledged…
The Pound Sterling (GBP) recovers some ground versus the US Dollar (USD) on Wednesday, though tensions in the Middle East remain high, pushing macroeconomic data releases into the backseat. A better-than-expected employment reading in the US was mainly ignored by traders with their sights set on Friday’s Nonfarm Payrolls report. At the time of writing, GBP/USD trades at 1.3361.Sterling steadies despite Middle East tensions, with traders focused on Friday’s jobs reportDuring the European session, GBP/USD edged towards its daily high of 1.3403 amid relief at a possible de-escalation of the conflict between the US and Iran. Nevertheless, Reuters reported that…
The Rupee’s weakness also comes in the backdrop of the US Dollar (USD) gaining strength against other currencies as global investors are piling into Dollar assets due to risk-off sentiments | Photo Credit: KSL The Rupee continued to feel the reverberations of the war in West Asia, weakening 120 paise against the US Dollar in the last two trading sessions amid concerns over the negative impact that the spike in global crude oil prices could have on India’s current account balance and inflation.The rupee on Wednesday sank 68 paise to close at an all-time low of 92.15 per US Dollar…
TD Securities’ Global Strategy Team notes that UK Chancellor Reeves delivered a cautious Spring Statement with no major new policies. Updated OBR projections show slightly slower UK growth in 2026 but stronger growth thereafter, alongside lower inflation forecasts. The team highlights that reduced financing needs and remaining fiscal space could be used if geopolitical risks intensify or policy is loosened later.Spring Statement and OBR projections”As largely expected, Chancellor Reeves played it safe in her fiscal forecast update, with no material new policies announced. The OBR projections showed more headroom by 2029-30, at £23.6bn (vs £21.7bn prior).””Macro projections were updated as…
The Indian rupee weakened past 92 per dollar for the first time on Wednesday as an intensifying war in the Middle East drove oil prices sharply higher, heightened the risk of portfolio outflows and raised concerns about remittance flows from diaspora in the region. The rupee fell to 92.17 to the dollar, down 0.7%, eclipsing its previous all-time low of 91.9875 hit in late January. The widening Middle East conflict threatens to hit India through multiple external channels. The country imports more than 80% of its crude oil needs, making the rupee highly sensitive to oil price shocks that swell…
The rupee weakened over the last week, as global and domestic factors turned adverse. The escalation of tensions involving the US, Israel and Iran has sharply shifted the global risk sentiment, triggering a risk-off move across markets.A key concern is the potential disruption of oil supplies through the Strait of Hormuz, through which nearly 20 per cent of the world’s crude oil passes. Brent crude futures (now at $82/barrel) have risen about 14 per cent so far this month and are up about 33 per cent year-to-date. Given India’s dependence on oil imports, sustained strength in crude prices increases dollar…
The Indian rupee, already Asia’s worst-performing currency in FY26, lost 50 paise Monday as Iranian attacks on major West Asian energy assets caused crude oil prices to leap about 10% despite assurances by major global exporters to modestly boost output.The rupee closed below the 91 mark to a dollar for the first time in a month – at 91.48 – as financial assets across Asia were battered by an alarming escalation in the US-Iran conflict. The US dollar strengthened and precious metals expectedly surged on safe-haven appeal after Tehran blockaded a narrow Persian Gulf strait that evacuates oil pumped by…
Opening weaker at 91.25 per dollar(down 28 paise compared with previous close of 90.97), the rupee tested intraday high/low of 91.2150/91.4900. | Photo Credit: iStockphoto The US-Israel joint attacks on Iran had its ripple impact on the rupee, which weakened below 91 to the dollar and touched a one-month low on Monday.The Indian unit was weighed down by FPI selling in the equity markets amid risk-off sentiment setting in, prompting investors to invest in safe-haven assets such as US Treasuries and gold, and hardening global crude oil and gold prices.Opening weaker at 91.25 per dollar (down 28 paise compared with…