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The rupee recovered from 100 per US dollar in forward market and was trading at 96.43 on Thursday after US President Donald Trump indicated that negotiations with Iran were entering the final stages.The one-year forward market rate for the rupee touched the crucial 100/USD mark on Wednesday, indicating that currency markets are pricing in a weakening bias for the USD/INR pair over the next 12 months, forex traders said.Investors are still gauging the geopolitical risk and oil price sensitivity in the background, with any flare-up in the West Asia tensions or spikes in crude, they added.At the interbank foreign exchange…
Standard Chartered’s Nicholas Chia argues that softer Australian labour data and activity indicators support the view that the Reserve Bank of Australia has likely peaked its cash rate at 4.35%. The bank highlights rising unemployment, weaker PMI and moderating wage growth, and sees a high bar for further hikes, with potential easing only if activity deteriorates sharply.Softer labour data ease RBA pressure”Australia’s unemployment rate rose 0.21ppt to 4.49% in April, the highest since late-2021. This follows the May decline of the flash services PMI (47.7) into contractionary territory, and Q1 wage growth easing to 3.3% y/y, in line with the…
The USD/JPY pair trades calmly around 159.00 during the Asian trading session on Thursday. The pair turns sideways as investors await fresh developments regarding negotiations between the United States (US) and Iran, after President Donald Trump stated on Wednesday that talks are in “final stages”.As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally higher to near 99.20. The DXY’s rally hit pause on Wednesday after posting a fresh six-week high at 99.47, following US President Trump expressing confidence that a deal with Iran would be finalized soon.We’re in the final…
The U.S. dollar hovered below a six-week peak on Thursday after pulling back on rising hopes that Washington is nearing a deal with Tehran to end the war in the Middle East. U.S. President Donald Trump said negotiations were in the final stages, while also warning of further attacks if Iran does not agree to a deal. The dollar, a traditional safe haven, fell for the first time in eight sessions against the yen on Wednesday, and was down slightly at 158.905 yen in early Thursday trading – taking it back from the 160 level that traders and analysts view…
US President Donald Trump said that negotiations with Iran were in the final stages, Bloomberg reported on Wednesday. However, Trump also reiterated a pledge to restart attacks in the coming days if Iran doesn’t agree to his terms.“We’re in the final stages of Iran. We’ll see what happens. Either have a deal or we’re going to do some things that are a little bit nasty, but hopefully that won’t happen,” Trump said.Iranian President Masoud Pezeshkian stated that Tehran was not on the brink of giving in. “Forcing Iran to surrender through coercion is nothing but an illusion,” Pezeshkian posted on…
Currency bears have begun whispering about the psychologically crucial Rs 100 per US dollar mark, with the one-year forward rate for the Indian rupee breaching the threshold Wednesday that coincided with yet another historic low in the spot market for the battered local currency.As spot price for the rupee touched Rs 96.96 per dollar and one-year forward premium near Rs 3.40, the one-year forward rupee breached the 100 mark to the greenback for the first time ever, market participants said. This fiscal, the unit has failed to reverse the unflattering trend of FY26, when the rupee had lost the most…
Silver (XAG/USD) rises on Wednesday and trades around $76.00 at the time of writing, up 3.11% on the day, as investors return to precious metals following a pullback in US Treasury yields. The white metal rebounds after the sharp decline seen in the previous day, benefiting from a pause in the global Bond market sell-off.The benchmark US 10-year Treasury yield is easing after recently reaching its highest levels in several months, reducing some of the pressure on non-yielding assets such as Silver. Lower yields typically reduce the opportunity cost of holding precious metals.However, the macroeconomic backdrop continues to limit the…
The Indian rupee fell to a record low on Wednesday as stalled U.S.-Iran peace talks kept oil prices elevated, driving global bond yields higher and hurting equities amid fears of further central bank rate hikes.The rupee slid to 96.96 per dollar, breaching its previous record low of 96.6150 hit in the prior session, and ended the day at 96.82. The currency has fallen over 6 per cent since the Iran war began in late February. Global bond markets extended their selloff as investors increased bets that the Federal Reserve may need to raise interest rates further in 2026.Oil prices eased…
The Indian Rupee (INR) continues to underperform against the US Dollar (USD) on Wednesday, trading close to its fresh all-time lows.The USD/INR pair holds onto gains near 97.00 as elevated oil prices due to fears of a prolonged closure of the Strait of Hormuz remain a key drag on the Indian Rupee.At press time, the WTI Oil price is down to near $101.80, but is up over 50% since the onset of the war in the Middle East.Currencies from economies, such as India, which rely heavily on oil imports to meet their energy needs, tend to underperform in a high-oil…
USD/CHF extends its gains for the second successive day, trading around 0.7890 during the Asian hours on Wednesday. The pair remains stronger as safe-haven demand supports the US Dollar (USD). Traders adopt caution after a Bloomberg report on Tuesday, stating that the US President Donald Trump recently threatened to resume attacks on Iran in two or three days as part of a push for a deal to end the war. This came after a brief pause in planned hostilities following a new proposal by Tehran to end the US-Israeli conflict.United States (US) inflation risks increase due to war-driven energy price…