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The Indian rupee slipped on Friday, pressured by dollar demand linked to maturing non-deliverable forward positions and corporate hedging as global markets awaited a key U.S. Supreme Court ruling on trade tariffs. The currency closed at 90.1625 against the U.S. dollar, down 0.1% on the day but little changed week-on-week. Weakness in local stocks also weighed, with the BSE Sensex and Nifty 50 logging their steepest weekly falls since late September. (link)Traders pointed to heightened dollar demand at the central bank’s daily reference rate and hedging activity from companies, which weighed on the local unit on Friday.State-run banks were intermittently…
The Euro is trading flat in the area of 0.8675 on Friday’s early European session, halfway through the weekly range, following mixed macroeconomic data from Germany. From a wider perspective, the pair is on track for a 0.3% weekly loss and a 1.5% sell-off from mid-November highs above 0.8800.German data released earlier on Friday revealed that Industrial Production grew 0.8% in November, following a 2.0% increase in the previous month, against market expectations of a 0.4% decline.The trade surplus, on the other hand, narrowed to €13.1 billion in November, from €16.9 billion in October, below the €16.5 surplus anticipated by…
The Indian rupee was little changed in early trade on Friday, caught between strong dollar demand at the daily reference rate and caution over betting against the currency following the central bank’s recent interventions. The rupee was at 90.04 against the U.S. dollar as of 10:15 a.m. IST, down marginally from its close at 90.0175 in the previous session. Multiple interventions by the Reserve Bank of India this month have blunted appetite for wagers against the currency even as several factors – including the risk of fresh U.S. tariffs, weak portfolio flows and a persistent skew in hedging activity -…
he apprehension of further tariffs by the US and weak sentiments at the domestic equity markets fuelled selling of equities by foreign investors, putting more pressure on the local unit, forex traders said. | Photo Credit: bluebay2014 The rupee fell 7 paise to 89.97 against the US dollar in early trade on Friday amid sustained FII outflows and a rise in global crude oil prices. The apprehension of further tariffs by the US and weak sentiments at the domestic equity markets fuelled selling of equities by foreign investors, putting more pressure on the local unit, forex traders said. At the…
The Australian Dollar (AUD) declines against the US Dollar (USD) on Friday, remaining subdued for the third successive session. The AUD/USD pair remains subdued following the release of key economic data from China, a key trading partner of Australia.China’s Consumer Price Index (CPI) rose 0.8% year-over-year (YoY) in December, up from 0.7% in November but below the 0.9% forecast. On a monthly basis, CPI increased 0.2%, reversing November’s -0.1% reading. Meanwhile, China’s Producer Price Index (PPI) fell 1.9% YoY in December, improving from a 2.2% decline previously and slightly beating expectations of a -2.0% print.The Australian Bureau of Statistics (ABS)…
The Indian rupee is poised inch higher on Friday on expectations of central bank support, which are likely to counter tepid Asian cues and continued portfolio outflows, traders said.The 1-month non-deliverable forward indicated the rupee will open in the 89.90-89.94 range versus the U.S. dollar, having dropped 0.15 per cent to 90.0175 on Thursday.The currency slipped in the last session despite another bout of intervention by the Reserve Bank of India.While it climbed to near 89.75 following RBI’s dollar sales, the rally quickly fizzled, echoing a similar lack of follow-through after Wednesday’s intervention.”Importers are hedging pretty aggressively when the dips…
The Mexican central bank also known as Banxico, revealed the December meeting minutes on Thursday, and cautioned that they will adopt a gradual approach on future monetary policy decisions.In December, Banxico cut interest rates by 25 basis points to 7% on a 4 to 1 vote split as the Deputy Governor Jonathan Heath voted to hold rates unchanged at 7.25%, arguing that inflation convergence towards the 3% plus or minus 1% remains uncertain, and noted that core inflation trend is still rising.The board’s majority justified its decision based on a strong Peso, a weak economy and the recent progress on…
The Pound Sterling falls for the third straight day, down some 0.10% as US jobs data has revealed that the labor market is healthier than expected, weighing on expectations of Fed rate cuts ahead in the year. At the time of writing, the GBP/USD trades at 1.3444 after reaching a daily high of 1.3465.Sterling weakens as resilient US labor indicators dampen Fed cut speculationEconomic data in the US capped the US Dollar losses yet weighed on G10 FX currencies. US jobless claims data for the week ending January 3 was below estimates of 210K, came at 208K, above the previous…
West Texas Intermediate (WTI) US Oil trades around $56.70 on Thursday at the time of writing, up 0.90% on the day. WTI prices rebound, supported by the release of inventory data showing a sharp decline in US Crude Oil stockpiles.According to weekly data published by the US Energy Information Administration (EIA), Crude Oil inventories fell by 3.831 million barrels in the week ended January 2. This drop is significantly larger than the previous week’s decline and stands in sharp contrast with market expectations, which had pointed to a build in stocks. A larger-than-expected drawdown in inventories is generally seen as…
Rupee, which opened at 89.95 rebounded to 89.75 after RBI intervened for a second straight day, bankers said. The Indian rupee ended lower on Thursday after a choppy session as fresh, surprise intervention by the Reserve Bank of India was outweighed by tariff worries and equity outflows.The currency, which opened at 89.95 rebounded to 89.75 after RBI intervened for a second straight day, bankers said. It finally ended at 90.0175 after closing at 89.88 on Wednesday.“Market moves have again started to be dominated by one large player, and the currency changes direction based on the presence or absence of RBI,”…