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Israel and Lebanon on Wednesday agreed to renew a ceasefire but said it would require a “complete cessation” of fire by Iran-backed Hezbollah. The agreement was announced in a joint statement after US-led talks in Washington.The two sides, which do not have formal diplomatic relations, also agreed to establish a number of “pilot security zones” in which the Lebanese armed forces “will take exclusive control of the territory to the exclusion of all non-state actors.”Market reaction At the time of writing, the West Texas Intermediate (WTI) is up 1.70% on the day at $93.25. WTI Oil FAQs WTI Oil is a…
The USD/JPY pair is trading just below the 160.00 price level on Wednesday, as the US Dollar (USD) remains supported by stronger-than-expected economic data, while the Japanese Yen (JPY) struggles to attract sustained demand amid a cautious market mood.The latest US ISM Services PMI rose to 54.5 in May from 53.6 in April, surpassing market expectations and pointing to stronger growth in the services sector. The report reinforced confidence in the resilience of the US economy and supported expectations that the Federal Reserve (Fed) may maintain a cautious approach toward interest rate cuts.Earlier in the day, Bank of Japan (BoJ)…
UOB economist Lee Sue Ann notes that softer Australian Gross Domestic Product (GDP), easing inflation and a cooling labour market have reduced pressure on the Reserve Bank of Australia (RBA) to tighten further. She expects the cash rate to be held at 4.35% through at least 1Q27, with domestic demand remaining a drag even as external demand for commodities offers some support.RBA seen on extended policy hold”Last month, the RBA lifted the cash rate by 25 bps to 4.35%, with an 8–1 vote, fully unwinding last year’s easing and reinforcing its commitment to curbing persistent inflation.””With softer GDP, easing inflation,…
The Indian rupee weakened on Wednesday, weighed by a jump in oil prices on renewed hostilities in the Middle East and weakness in local stocks while likely market intervention by the central bank capped losses.Towards the end of the trading session, the currency was also supported by a Bloomberg News report that said India plans to cut taxes for foreign bond investors and remove caps on the overseas ownership of some bonds.The rupee closed at 95.7050 per dollar, down 0.46% from its close of 95.2650 in the previous session.Oil prices rose nearly 3% on Wednesday, extending gains from the previous…
RBI and SEBI have tightened checks on overseas investments by firms and family offices, issuing at least 10 queries in the past three weeks to determine any potential misuse of the investment route, three sources with direct knowledge of the matter said to Reuters.The South Asian nation’s currency has come under sharp pressure from surging oil prices and foreign money outflows, prompting higher taxes on precious metal imports and calls to conserve foreign exchange.In a rare move over the past three weeks, the Reserve Bank of India (RBI) has sent at least 10 queries to ascertain whether funds were routed…
TD Securities strategists Prashant Newnaha and Alex Loo note that Australian Q1 Gross Domestic Product (GDP) matched the Reserve Bank of Australia’s (RBA) 0.3% q/q implied forecast, but highlight that household and government spending are weak while data centre investment props up activity. They stress that the economy is still growing above its speed limit and expect one final 25 bps RBA hike in August.RBA path shaped by weak demand”Q1 GDP landed bang in line with the Bank’s implied 0.3% q/q forecast. However, a breakdown of the data reveals that outside of data center investment, household and government spending is…
The Indian rupee weakened to a one-week low on Wednesday, as hostilities in West Asia pushed crude prices higher amid stalled U.S.-Iran peace talks while a drop in local stocks worsened the strain on the currency.Traders said state-run banks were selling dollars, most likely on behalf of the Reserve Bank of India, helping limit the fall in the rupee. These banks were also spotted conducting dollar-rupee buy/sell swaps, in line with recent sessions.The rupee fell about 0.5 per cent to 95.7825 per dollar, tracking declines in oil-sensitive regional peers like the Indonesian rupiah, which fell to a record low, and…
The Indian rupee could weaken to a record low of 98 against the U.S. dollar by July as the energy shock triggered by the Middle East crisis continues to pile pressure on domestic assets, especially the currency, a BofA Securities executive told Reuters. The rupee, Asia’s worst performing currency this year, has been battered by the war-led energy shock that threatens to slow growth and push up inflation in India, which imports almost 90% of its crude requirements and half of its gas needs. Authorities have implemented several measures to protect the currency and preserve dwindling foreign exchange reserves, with…
Gold (XAU/USD) extends the previous day’s late pullback from the vicinity of the $4,550 level and attracts some follow-through selling during the Asian session on Wednesday. Crude Oil prices rise for the third straight day amid renewed hostilities in the Middle East, reviving inflationary concerns and reaffirming market bets that interest rates would stay higher for longer. This, in turn, is seen as undermining the non-yielding yellow metal. Furthermore, geopolitical uncertainties assist the US Dollar (USD) in preserving its weekly gains, which turns out to be another factor that keeps the commodity depressed below the $4,500 mark, near the lower…
Mumbai: The Indian rupee weakened 29 paise on Tuesday, while intervention from the central bank contained further losses amid foreign investor outflows and high crude oil prices.The currency closed at 95.27, from its previous close of 94.99, as dollar demand from hedgers continued, traders said. It traded in the range of 95.29 and 95.02 per dollar.The rupee depreciated nearly 11% in FY26. It has depreciated 0.17% in FY27 so far. However, at current levels, the rupee has appreciated 2% from its record low of 96.96 on May 20.”Heavy bids from oil marketing companies have kept the rupee under pressure for…