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USD/CHF loses ground for the fourth consecutive day, trading around 0.8200 during Asian hours on Tuesday. The pair depreciates as the US Dollar (USD) declines on increased risk-on sentiment due to trade and diplomatic prospects: traders are closely monitoring an upcoming US-China summit for signs of improving relations between the world’s two largest economies.Additionally, hopes for a diplomatic breakthrough in the Middle East have improved investor mood following news that Iranian President Masoud Pezeshkian will lead a delegation at the UN General Assembly, alongside comments from US President Donald Trump indicating he would likely be open to a side meeting.USD/CHF…
US President Donald Trump administration has proposed investing $5 billion in a new fund to help rebuild critical infrastructure across the Middle East damaged in the war with Iran and reduce their reliance on the Strait of Hormuz to transport oil and gas, the Wall Street Journal reported on Monday.The Partnership for Allied Construction & Trust would be led by the US Development Finance Corporation to encourage investment, reconstruction and economic expansion.The document identifies four project categories as priorities for the platform. There are investments to help bypass the Strait of Hormuz, restoration of energy flows and critical material exports,…
The Pound Sterling retreats by some 0.17% on Monday as the Greenback trades in the green following last week’s Fed rate hike, which widened the interest rate differential between the US and the UK, while still-high energy prices put pressure on major central banks to raise rates. The GBP/USD trades at 1.3371, after reaching a high of 1.3400.Sterling retreats as widening rate gap outweighs improving risk sentimentMarket mood is positive, which usually underpins the GBP/USD pair, but hawkish comments by Chicago Fed President Austan Goolsbee dented appetite for Sterling.Goolsbee said that they (Fed) can’t ignore repeated and consistent supply shocks…
The rupee closed stronger at 95.8150 a dollar Monday against the previous close of 95.87 with the Brent crude prices retreating to $101.5 a barrel.This local currency gained for the third day in a row, on softer fuel prices even as geopolitical tensions continued to keep the market edgy.”However, it hasn’t been a one-way street. Sustained dollar outflows and heavy dollar demand from domestic importers kept aggressive gains in check, creating a fascinating tug-of-war in the rupee market,” HDFC Securities senior research analyst Dilip Parmar said.The rupee opened the day at 95.81 a dollar and gained to 97.7175 but weakened…
OCBC’s Christopher Wong notes that the Japanese Yen (JPY) weakened after the BoJ’s 25 bp hike to 1.25% as limited guidance on further normalisation disappointed hawkish expectations. Wong highlights that USD/JPY remains driven by UST–JGB spreads and thin liquidity, with resistance around 158–159 and support near 155–153, while firmer inflation, wages and intervention risks could cap Yen downside.BoJ’s cautious tone tempers Yen support”JPY weakened after the BoJ raised its policy rate by 25bp to 1.25%, its highest in over 3 decades. The hike was widely expected, but the 7–2 vote and relatively limited guidance on the pace of further normalisation…
The rupee ended marginally stronger on Monday after hovering in a narrow band, supported by lower oil prices and portfolio inflows, while sustained importer hedging demand kept its gains in check.The rupee closed at 95.8150 per dollar, up slightly from its close at 95.8725 in the previous session.Asian currencies were mostly range-bound, while regional equities advanced after oil prices fell 2%, as investors hoped for diplomatic progress on the Iran war due to this week’s UN meeting, and eyed a partial recovery in shipments from Saudi Arabia.Inflows related to the National Stock Exchange of India’s IPO also helped the rupee…
Dow Jones futures gain by 0.60% to trade near 52,390 during European hours on Monday. Meanwhile, S&P 500 futures advance by 0.57% to trade around 7,760, while Nasdaq 100 futures rise by 0.86% to trade near 30,170.US stock futures climb as market sentiment improved, driven by a drop in crude oil prices. This decline stemmed from growing hopes that increased diplomatic efforts could help end the Middle East conflict and restore stable energy flows from the region.According to strategists at Deutsche Bank, “last week’s equity market offered a useful illustration of how we believe the remainder of 2026 could unfold,”…
The rupee gained 24 paise to 95.72 against US dollar in early trade on Monday, supported by a slight moderation in crude oil prices and a positive trend in domestic equities.Forex traders said initial gains in domestic equities and improved foreign fund sentiment boosted investor sentiment, but sustained importer demand for greenbacks from oil companies and broader strength in the US dollar Index weighed on the local unit.At the interbank foreign exchange market, the rupee opened at 95.86 against the US dollar, then gained some ground to touch 95.72 against the American currency, registering a gain of 24 paise from…
The EUR/JPY cross holds steady around 180.25 during the early European trading hours on Monday. Japan markets are closed for a three-day holiday, leading to low liquidity. Traders remain on high alert for currency intervention from Japanese authorities to prop up the volatile currency.The Bank of Japan (BoJ) decided to raise its policy rate by 25 basis points (bps) to 1.25%, the highest level since 1995, as widely expected. However, a lack of explicitly hawkish guidance disappointed markets, weighing on the Japanese Yen (JPY) against the Euro (EUR). Swaps markets have priced in less than 20% for the next policy meeting…
Minneapolis Federal Reserve (Fed) President Neel Kashkari said that inflation is too high across all sectors of the US economy, not just in rising oil prices, Reuters reported on Sunday.Key quotes Inflation remains too high. Inflation extends beyond oil prices. Hopefully we’ll get support from other parts of government, the real economy. Growth has been fairly robust. American economy remains very resilient despite wars. Productivity showing some signs of improvement. Hopeful growth can prevail and reduce inflation.Bond market is responsibility of Treasury. Labor market remains robust.Market reaction At the time of writing, the US Dollar Index (DXY) is trading 0.07% higher on the day to trade at 100.30.Kashkari flags stubborn…