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Gold (XAU/USD) extends its rebound on Friday as traders assess the prospects of a potential US-Iran deal. At the time of writing, XAU/USD trades around $4,583 after recovering from a two-month low of $4,366 touched on Thursday.Risk sentiment improved after US President Donald Trump said on Friday that “the naval blockade will now be lifted” and added that he would be meeting in the Situation Room “to make a final determination” on Iran. This comes after Axios reported on Thursday that the US and Iran reached a 60-day memorandum of understanding (MOU).The deal would extend the current ceasefire and reopen…
USD/CAD reverses its intraday gains on Friday as a softer US Dollar (USD) helps the Canadian Dollar (CAD) recover from weakness driven by softer-than-expected Gross Domestic Product (GDP) figures. At the time of writing, the pair trades around 1.3780 after rising to 1.3829 earlier in the American session.On the geopolitical front, hopes for a potential US-Iran deal are reducing safe-haven demand for the US Dollar. The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, trims earlier gains on Friday and slips below the 99.00 mark.Traders are awaiting final approval from US President Donald…
India’s foreign exchange reserves declined by USD 7.51 billion to USD 681.38 billion during the week ended May 22, according to RBI data. | Photo Credit: FRANCIS MASCARENHAS India’s forex reserves dropped USD 7.511 billion to USD 681.384 billion during the week ended May 22, the RBI said on Friday.In the previous reporting week, the kitty had dropped USD 8.094 billion to USD 688.894 billion.The kitty had expanded to an all-time high of USD 728.494 billion during the week ended February 27 this year before the onset of the Middle East conflict that led to several weeks of a drop…
Gold price (XAU/USD) is up 0.7% to near $4,530 during the European trading session on Friday. The precious metal extends its Thursday’s recovery move, as Oil prices decline due to renewed hopes of a permanent peace deal between the United States (US) and Iran.As of writing, the WTI Oil price trades 1.6% lower, hitting a fresh five-week low near $86.30.On Thursday, a report from Axios showed that the US and Iran had reached an agreement over a 60-day Memorandum of Understanding (MoU), which includes “unrestricted” energy flow through the Strait of Hormuz, a critical passage to almost 20% of global…
The rupee jumped sharply on Friday to log its best single-day gain in nearly two months as likely intervention by the central bank converged with a drop in oil prices, which also briefly lifted the local currency above the 95/USD mark. The rupee ended the session at 95 per dollar, up 0.7% from the previous session, its best day since April 2. It gained by a similar amount week-on-week, but was flat for the month. While the rupee appeared set to endure a weaker day, likely dollar selling intervention reversed the trajectory, with a drop in crude prices adding to…
The Reserve Bank of India said the use of the Indian rupee for trade invoicing and settlement has risen steadily in recent years, driven by measures to internationalise the currency. | Photo Credit: iStockphoto Rupee is being increasingly used for import and export invoicing over the years, showed the data compiled by the Reserve Bank of India, which said the INR internationalisation process has been mutually beneficial to all trading partners.Over the past few years, several measures have been undertaken by the RBI to enhance the role of INR as an international currency through its increased usage for both current…
The Indian rupee jumped sharply on Friday to log its best single-day gain in nearly two months as likely intervention by the central bank converged with a drop in oil prices, which also briefly lifted the local currency above the 95/USD mark.The rupee ended the session at 95 per dollar, up 0.7 per cent from the previous session, its best day since April 2. It gained by a similar amount week-on-week, but was flat for the month.While the rupee appeared set to endure a weaker day, likely dollar selling intervention reversed the trajectory, with a drop in crude prices adding…
Japan’s Chief Cabinet Secretary Minoru Kihara said during the European trading session on Friday that the government is extremely concerned about speculative Forex (FX) moves and will be ready for appropriate action if needed.Additional remarksGovernment’s stance is always to take appropriate action on forex.Won’t comment on forex levels, intervention.The statement from Japan’s Chief Cabinet Secretary Kihara increases hopes of an intervention against excessive forex moves. Earlier in the day, Japan’s Finance Minister (FM) Satsuki Katayama warned that authorities could intervene in the foreign exchange (Forex) market to counter excessive volatility against the Japanese Yen (JPY).Market reactionNo immediate response was seen…
The rupee rose 5 paise to 95.53 against the US dollar in early trade on Friday, after the US and Iran reached an understanding to extend the ceasefire for another 60 days.Forex traders said the agreement is expected to keep trade flowing through the strategic Strait of Hormuz while both countries continue negotiations around Iran’s nuclear program.At the interbank foreign exchange market, the rupee opened at 95.77 against the US dollar, then gained ground and touched 95.53 in early trade, up 5 paise from its previous close. In initial trade the rupee also touched 95.78 against the American currency.On Wednesday,…
USD/CHF edges higher after registering modest losses in the previous day, trading around 0.7840 during the Asian hours on Friday. The pair caught in a tug-of-war between lingering geopolitical risks in the Middle East and stronger-than-expected economic data from Switzerland.Analysts at MUFG Bank have warned that the US Dollar (USD) could appreciate if Washington and Tehran fail to finalize a ceasefire extension. An unresolved conflict threatens to build global inflationary pressures, a scenario that could push US Treasury yields higher and shift the Federal Reserve’s (Fed) internal consensus toward a more hawkish monetary policy stance to combat rising prices.While the…