Author: admin
Japan’s Finance Minister Satsuki Katayama said on Wednesday that the authorities are ready to act on the foreign exchange if required.Key quotes Ready to act on forex if required.Aligns with BoJ governor on several matters.Market reactionAs of writing, the USD/JPY pair is up 0.04% on the day at 159.97. Bank of Japan FAQs The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%. The Bank of Japan embarked in an ultra-loose…
ABN AMRO economists Bill Diviney and Rose Heaulme note that Eurozone headline inflation rose to 3.2% in May, with core inflation surprising at 2.5%. Energy remains the main driver, while food inflation eased. A sharp jump in services inflation, likely linked to transportation and airfares, is seen as narrowly focused but warrants monitoring. They still expect two ECB rate hikes by July.Services-led upside surprise in May inflation”Eurozone inflation picked up in line with expectations to 3.2% in May, from 3% in April, while core inflation surprised to the upside, rising to 2.5% (ABN/consensus: 2.4%) from 2.2%.””The big upward surprise this…
TD Securities strategists have cut their Gold forecasts for the next two quarters as higher inflation expectations from supply shocks lift yields and keep the Dollar firm, with markets even pricing a potential Fed hike in late 2026. They see downside risk toward $4,000–4,200/oz if Oil surges, but materially upgrade long-term projections, targeting an average of $5,350/oz by Q2 2027.Short-term downgrades, long-term upgrades”Our gold price projections for the next two quarters have been downgraded materially, as higher inflation expectations associated with the negative supply shocks have pushed yields across the curve higher, kept the USD firm, and prompted markets to…
The Indian rupee and dollar-rupee forward premiums fell on Tuesday, driven by opposing forces of importer hedging, foreign portfolio outflows and likely central bank intervention across FX market segments.The rupee ended at 95.2650 per dollar, down 0.3% from its close in the previous session.Traders said that the losses would have been steeper had it not been for the Reserve Bank of India’s dollar-selling interventions, which have continued in almost every session since the rupee hit a record low of 96.96 per dollar in mid-May.The central bank has conducted these interventions alongside dollar-rupee buy/sell swaps to manage rupee liquidity and the…
The Indian rupee and dollar-rupee forward premiums fell on Tuesday, driven by opposing forces of importer hedging, foreign portfolio outflows and likely central bank intervention across FX market segments.The rupee ended at 95.2650 per dollar, down 0.3% from its close in the previous session.Traders said that the losses would have been steeper had it not been for the Reserve Bank of India’s dollar-selling interventions, which have continued in almost every session since the rupee hit a record low of 96.96 per dollar in mid-May.The central bank has conducted these interventions alongside dollar-rupee buy/sell swaps to manage rupee liquidity and the…
Deutsche Bank’s Jim Reid and colleagues outline a baseline scenario in which a US-Iran agreement this month reopens the Strait of Hormuz, allowing Brent Oil to retreat toward $86 per barrel in Q4 2026. They warn that a prolonged closure could push Brent towards $150, with stagflationary risks and recession in Europe, though global GDP is only slightly trimmed.Hormuz scenarios drive crude outlook”In the outlook, our baseline expectation is that a US-Iran deal is reached this month that allows shipping through the Strait of Hormuz to resume, with Brent crude falling back to $86/bbl in Q4.””However, if the Strait of…
The rupee appreciated 16 paise to 95.03 against US dollar in early trade on Tuesday, as the market weighed India’s strong domestic fundamentals against ongoing geopolitical uncertainty.Forex traders said the USD/INR pair opened on a positive note this morning on a slight risk off sentiment. However, the uncertainty surrounding West Asia continues to cast a shadow over financial markets and energy prices.At the interbank foreign exchange market, the rupee opened at 95.16 against the US dollar, then touched 95.03 in early trade, up 16 paise from its previous close.On Monday, the rupee depreciated 34 paise to close at 95.19 against…
USD/CHF moves little after registering modest gains in the previous day, trading around 0.7870 during the Asian hours on Tuesday. The pair steadies as the US Dollar (USD) remains firm on increased safe-haven demand after Tasnim news agency indicated that Tehran has halted indirect negotiations with the United States. Traders await the Swiss Trade Balance data release due later in the day.According to the report, Iran and its “Resistance Front” allies, spanning Yemen, Lebanon, and Iraq, have established an agenda to completely block the critical Strait of Hormuz and activate additional fronts, including the Bab el-Mandeb Strait, as a means…
Mumbai: The Indian rupee was nearly unchanged on Monday and closed at 94.99%, from its previous close of 95.00. Dollar sales from state run banks, likely on behalf of the central bank, and dollar demand for hedging kept the rupee in a tight range.The currency traded from 95.03 per dollar and 94.72 on Monday. The one month forward premium stood at 4.10%, from 3.77% on Friday.The one year forward premium was at 3.21%, from 3.15% on Friday.The rupee depreciated nearly 11% in FY26. It has depreciated 0.17% in FY27 so far. However, at current levels, the rupee has appreciated 2.06%…
US President Donald Trump said that he will have an agreement with Iran to extend the ceasefire and reopen the Strait of Hormuz “over the next week,” ABC News reported on Monday.His comments came following his direct intervention to halt a flare-up between Israeli forces and Hezbollah in Lebanon. Trump expressed optimism about the negotiations while acknowledging unresolved details remain on the table. “Looking good, looking good,” he said, adding that he had quickly resolved a diplomatic “glitch” that threatened to derail progress.Trump stated that he called Israeli Prime Minister Benjamin Netanyahu and asked him not to proceed with a…