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EUR/USD comes under renewed selling pressure on Monday as initial optimism surrounding a potential US-Iran peace deal fades amid escalating tensions in the Middle East. At the time of writing, the pair trades around 1.1626, down nearly 0.30% on the day.Iran’s semi-official Tasnim News Agency reported on Monday that Tehran has suspended message exchanges with Washington over Israel’s continued military operations in Lebanon against Hezbollah.Meanwhile, Iran also accused the United States of violating the ceasefire after US Central Command (CENTCOM) said it carried out “self-defense strikes” on Iranian radar and drone facilities over the weekend. Iran’s Revolutionary Guard said on…
Iranian Foreign Minister Seyed Abbas Araghchi warns of serious consequences, in a post on X, formerly known as Twitter, that the United States (US) and Israel would face serious consequences if there were any military action across all fronts, including Lebanon.“A ceasefire between Iran and the United States constitutes, without any ambiguity, a comprehensive ceasefire across all fronts, including Lebanon. Any violation of this ceasefire on one front shall be considered a violation of it across all fronts. The United States and Israel bear responsibility for the consequences of any breach of the truce,” Araghchi wrote.Market ReactionThere seems to be…
Rupee ended nearly flat on Monday as modest gains spurred by flows connected toMSCI’s equity index rebalancing were eroded by persistent hedging demand from corporates, while traders kept their focus firmly on the upcoming monetary policy decision.The rupee closed at 94.99 per dollar, almost unchanged from its close at 95.00 on Friday.The currency gained in early trading on the back of concurrent dollar sales from foreign and state-run banks, but activity faded in the latter half of the session, a private sector bank trader said.In the near-term, the rupee is likely to be rangebound between 94.50-96 with intra-day flows dictating…
Crude prices are trading higher on Monday, with the barrel of the US benchmark West Texas Intermediate (WTI) changing hands at $89.40 at the time of writing, nearly $3 higher than last week’s closing price. Recent skirmishes between the US and Iran and the extension of the Israeli occupation in Lebanon are triggering fears of further escalation of the war.The peace process between Washington and Tehran remains stalled, with the memorandum of understanding still awaiting US President Donald Trump’s signature since Friday, and tensions in the Gulf region escalatingThe US announced a new wave of strikes on Iran’s Military sites,…
USD/CHF gains ground after two days of losses, trading around 0.7830 during the Asian hours on Monday. The pair gains ground as the Swiss Franc (CHF) weakens ahead of the release of key economic data including, Swiss Real Retail Sales for April, Q1 Gross Domestic Product, and May’s SVME – Purchasing Managers’ Index (PMI). Traders will shift their focus on the Institute for Supply Management’s (ISM) Manufacturing PMI, which provides a reliable outlook on the state of the US manufacturing sector.The USD/CHF pair appreciates as the US Dollar (USD) maintains its strength on increased safe-haven demand, driven by market participants…
The U.S. dollar held steady on Monday after a weekly loss as markets awaited the results of peace talks in the Middle East and signals on the timing of central bank rate hikes. The dollar index edged lower last week on hopes for a deal between the United States and Iran to open the Strait of Hormuz shipping lane for oil. Oil jumped in early trade after Israel ordered troops to move further into Lebanon in the battle with Iranian-backed Hezbollah.U.S. President Donald Trump said on Friday he would soon decide on a proposed deal to extend the Iran ceasefire.…
The AUD/USD pair holds steady around 0.7185 during the early Asian trading hours on Monday. Traders continue to assess the developments surrounding the US-Iran peace negotiations. Also, China’s RatingDog Manufacturing Purchasing Managers Index (PMI) report for May will be released later on Monday. Iranian Foreign Minister Abbas Araghchi said on Sunday that talks and message exchanges with the US were ongoing, but highlighted that no assessment of negotiations could be made until a clear outcome was reached. “Talks and message exchanges are ongoing, and until a definite result is reached, it is not possible to judge,” said Araghchi. “Everything being said…
The rupee has witnessed significant depreciation in 2026, briefly nearing the Rs. 97 per US dollar mark before recovering modestly towards Rs. 95.30 this week. This sharp movement reflects a confluence of global and domestic factors and has meaningful implications for India’s commodity markets, inflation trajectory, and broader economy.Why the INR has weakened sharplyThe recent weakness in the rupee is driven by a mix of structural and cyclical factors. India’s heavy reliance on imports, especially crude oil, which accounts for over 85% of consumption, has sharply increased dollar demand, particularly as global oil prices surged. At the same time, widening…
Mumbai: The rupee strengthened on Friday, helped by central bank intervention in the market, news of a peace deal and ceasefire between Iran and the US, and easing oil price.The rupee strengthened to 94.95 to the dollar before closing at 95.00, its best day since April 2, according to LSEG data.Brent futures dropped and were last hovering around $91 per barrel, aiding the local currency.Agenciesboost from RBI Support, W Asia peace hopesThe rupee is expected to strengthen further if there are no further escalations in the ceasefire. Dealers expect the rupee to trade in a range of 94.75-95.75 Monday.”Lower crude…
Mumbai: The rupee’s use for invoicing and settlement of international trade saw only modest growth in the last two fiscal years, the central bank’s annual report showed, reflecting the ground India needs to further cover to internationalise its currency in a global trading order still dominated by the US dollar.Former RBI Deputy Governor, T Rabi Sankar, had said in October 2025 that invoicing and settling trade in rupees was a key step towards India’s ambition of becoming a developed economy.AgenciesTo encourage greater use of the rupee in cross-border trade, the RBI has introduced measures such as permitting correspondent banks in…