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Brown Brothers Harriman’s (BBH) Elias Haddad notes AUD/USD slid toward 0.7136 and is expected to settle closer to 0.7000, consistent with Australia–US 2‑year yield spreads. Mixed April Consumer Price Index (CPI), with softer headline but firm trimmed mean, saw Reserve Bank of Australia (RBA) hike pricing pared back and leaves risks skewed toward a longer pause in the tightening cycle.Yield spreads point to lower Aussie”AUD/USD dropped to intra-day lows near 0.7136. We expect AUD/USD to stabilize lower around 0.7000, the level implied by Australia-US 2-year bond yield spreads.””Australia April inflation was mixed. Headline CPI dipped more than expected to 4.2%…
The rupee settled on a flat note, higher by 2 paise at 95.68 (provisional) against the US dollar on Wednesday, as renewed tensions between the US and Iran and delays in negotiations kept investors cautious.Forex traders said a strong American currency and weak domestic markets also pressured the rupee. Attention has shifted toward the upcoming RBI Monetary Policy Committee meeting scheduled between June 3 and 5, they said.At the interbank foreign exchange market, the rupee opened at 95.60 against the US dollar, and touched an intra-day low of 95.79 against the American currency.At the end of Wednesday’s close, the rupee…
The Indian rupee had a muted Wednesday, with traders keeping an eye on gyrations in oil prices alongside signs of the central bank’s presence in the spot and forward market to support the beleaguered currency. The rupee closed at 95.69 per dollar, barely changed from its close at 95.68 in the previous session. While the currency threatened to fall past 95.80 earlier in the session, dollar sales from state-run banks averted the move, four traders said. Concurrently, state-run banks were spotted conducting dollar-rupee buy/sell swaps, which cooled forward premiums, they added. India’s central bank has likely been rolling over maturities…
The Indian rupee dipped on Wednesday and appeared prone to steeper losses on elevated oil prices, with dollar sales from state-run banks capping some decline, a familiar pattern over recent trading sessions as the South Asian unit remains under pressure.Ebbing hopes of an imminent resolution to the U.S.-Israeli war on Iran have lifted oil prices to the vicinity of $100 per barrel, keeping alive investor worries over the risks confronting energy importers like India.On the day, the rupee was down 0.1 per cent at 95.7675 per dollar, with trading in Asia thinned out by a clutch of regional holidays.The dollar…
The Euro (EUR) extends its rally against the Japanese Yen (JPY) for the fourth consecutive day on Wednesday, reaching above 185.46 for the first time since an alleged intervention on April 30. The JPY has failed to draw support from Bank of Japan Governor (BoJ) Ueda’s hawkish comments and is dropping against its main peers, raising concerns of another intervention. Ueda warned about second-round effects from inflation on Wednesday and stated that central banks should not look at Oil prices in isolation, because a temporary energy shock “may turn lasting if it alters wages, expectations and price-setting behaviour.”These comments feed expectations…
Reserve Bank of New Zealand’s (RBNZ) Governor Anna Breman presents the prepared remarks on the Monetary Policy Review (MPR) and responds to media questions at the press conference after the May monetary policy announcement.Earlier on, Breman and her colleagues announced no change to the Official Cash Rate (OCR) decision, holding it at 2.25% as widely anticipated.RBNZ press conference key quotesAll members agreed on path for rates, difference was on timing.Members who voted to raise rates more concerned with second-round effects on inflation.Members who voted to hold emphasized low core inflation, subdued wage growth, anchored expectations.Longer term inflation expectations remain anchored.Inflation…
Mumbai: The Reserve Bank of India’s 3-year dollar-rupee buy-sell swap saw strong demand, with participants bidding nearly double the notified amount. The $5 billion swap attracted bids worth $9.8 billion, with its cutoff premium at 910 paise, an increase of 182 paise from the last time the central bank conducted a 3-year swap. The settlement of the initial leg of the FX swap will take place on Friday, through which the RBI will inject rupee liquidity into the banking system. The liquidity stood at a low surplus of Rs 67,285 crores as of May 25 Source
The Islamic Revolutionary Guard Corps (IRGC) threatened to retaliate after the United States (US) carried out strikes on southern Iran in “self-defence,” CNN reported on Tuesday. The IRGC also claimed that 25 vessels, including oil tankers, transited Hormuz during the “last day and night.”Iran’s Foreign Ministry condemned the US attacks as a violation of a ceasefire that’s been in place since early April. Meanwhile, Iranian Supreme Leader Mojtaba Khamenei said that “nations and lands of the region will no longer be a shield for American bases.”The US and Iran are working toward a memorandum of understanding, but disputes over language…
The Euro (EUR) loses ground during the North American session on Tuesday amid rising tensions in the Middle East, as the US and Iran exchanged fire near the Strait of Hormuz, while negotiations continue. At the time of writing, the EUR/USD pair trades at 1.1622, down 0.15%.Euro weakens as Iran tensions offset softer Oil pricesIran reported that the US violated the ceasefire as the United States conducted defensive strikes in southern Iran, after President Donald Trump said that negotiations with Tehran would extend. Meanwhile, US Secretary of State Marco Rubio stated that reaching a deal could “take a few days,”…
Gold (XAU/USD) loses ground on Tuesday as the US Dollar (USD) and Oil prices rebound after renewed US military strikes in southern Iran dampen hopes for a quick end to the Middle East war. At the time of writing, XAU/USD is trading around $4,511, easing from an intraday high of $4,580.The US Central Command said on Monday that US forces carried out “defensive strikes” in southern Iran targeting missile sites and Iranian boats allegedly attempting to place naval mines near the Strait of Hormuz. Meanwhile, Iran’s Islamic Revolutionary Guard Corps (IRGC) said it had downed a US MQ-9 Reaper drone…