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The rupee is expected to open in a narrow range on Monday, though most traders see the weekly bias tilted to the weaker side with year-end outflows and positioning likely to weigh on the currency.The 1-month non-deliverable forward indicated the rupee will open largely flat, having settled at 89.85 per dollar on Friday.Conversations among bankers are focused on two key factors: the magnitude of the Reserve Bank of India’s intervention that reversed the rupee’s slide from 91 per US dollar and how much pent-up dollar demand has resurfaced in both onshore and offshore markets following that move.Last week, the rupee…
The Bank of Japan (BoJ) published the Summary of Opinions from the December monetary policy meeting, with the key findings noted below. Key quotesOne member said although policy rate will remain deeply negative, Bank of Japan must carefully monitor impact of rate hike on economy and markets.One member said BOJ must increase rates steadily to avoid being behind the curve. One member said BOJ should scrutinize economic, price, and financial developments when adjusting degree of monetary policy rather than having a specific set pace in mind.One member said Japan real policy rate is lowest globally so appropriate to hike considering impact on…
The Indian rupee is expected to show more weakness going ahead into 2026, according to a report by MUFG, a global financial group.In a report earlier this month, it forecast more weakness for the Indian rupee. It expects the Indian rupee to appreciate modestly above the 90 level in 2026, targeting 90. 80 by the September 2026 quarter. “We have already been expecting INR to weaken and underperform, although we note FX outflow pressures have been more acute than we have anticipated thus far. Our forecasts also imply continued INR weakness against key FX crosses such as EUR (Euro), JPY…
Foreign currency assets, the largest component of the reserves, rose by USD 1.641 billion to USD 559.428 billion, reflecting valuation changes in non-US currencies as well. | Photo Credit: India’s forex reserves jumped by USD 4.368 billion to USD 693.318 billion during the week ended December 19, the Reserve Bank said on Friday. The overall kitty had increased by USD 1.689 billion to USD 688.949 billion in the previous week. For the week ended December 19, foreign currency assets, a major component of the reserves, increased by USD 1.641 billion to USD 559.428 billion, the data released by the central…
The Indian rupee ended a tad lower on Friday and posted a weekly loss, as steady dollar demand from corporates and in the non-deliverable forwards market chipped away at gains fuelled by aggressive central bank intervention.The rupee closed at 89.85 per dollar, marginally weaker than 89.7850 in the previous session.The currency fell 0.6% on the week, reversing course after rising more than 1% last week when the central bank stepped in to shore it up from record lows.On Friday, the rupee held in a narrow range and avoided deeper losses supported by dollar sales from state-run banks around 89.90, near…
The rupee depreciated 15 paise to close at 89.86 (provisional) against the US dollar on Friday, tracking a negative trend in domestic equities and foreign fund outflows. Forex traders said a recovery in crude oil prices, significant dollar demand from importers, and risk-off sentiment amid trade deal uncertainties further dented investor sentiment. At the interbank foreign exchange, the rupee opened at 89.84 against the US dollar, then touched an intra-day low of 89.94, registering a 23-paise loss from its previous close. At the end of the trading session on Friday, the rupee pared some of its losses and was quoted…
The rupee depreciated 23 paise to 89.94 against the US dollar in early trade on Friday, weighed down by foreign fund outflows and recovery in crude oil prices. Forex traders said a negative trend in domestic equities, dollar demand from importers, and trade deal uncertainty further dented investor sentiment. At the interbank foreign exchange, the local unit opened at 89.84 against the dollar but lost ground to trade at 89.94, down 23 paise from its previous close.On Wednesday, the rupee pared initial gains and settled for the day lower by eight paise at 89.71 against the US dollar. Forex and…
The Canadian Dollar (CAD) holds modest gains against the US Dollar (USD) on Wednesday, even as the Greenback trades firm amid limited movement as markets drift into holiday mode. At the time of writing, USD/CAD is trading around 1.3675, hovering near its lowest level since July 25.Gross Domestic Product (GDP) data released on Tuesday did little to shift sentiment around USD/CAD. Canada’s economy contracted by 0.3% MoM in October, matching forecasts and reversing a 0.2% gain in the prior month. Meanwhile, the preliminary estimate of third-quarter GDP showed the US economy grew at a strong annualised pace of 4.3%, beating…
Gold (XAU/USD) trades on the back foot on Wednesday after surging to a fresh all-time high near $4,526 earlier in the day. Volatility picked up amid thin holiday liquidity ahead of Christmas, encouraging mild profit-taking at elevated levels. At the time of writing, XAU/USD trades around $4,470, up nearly 3% this week.Bullion’s historic rally this year has been nothing short of remarkable, with prices up more than 70% year to date, putting Gold on track for its strongest annual performance since 1979. The rally has been driven by strong safe-haven demand amid persistent geopolitical risks and economic uncertainties, as well…
The British Pound (GBP) softens against the US Dollar (USD) on Wednesday, with the Greenback finding mild support amid reduced liquidity during the shortened US holiday session. At the time of writing, GBP/USD trades around 1.3500, easing slightly after briefly touching an intraday high near 1.3534, its strongest level since September 19.Markets showed a muted response to the latest weekly US labor market data, which offered mixed signals. Initial Jobless Claims fell to 214K from 224K in the previous week, undershooting the 223K market forecast. Meanwhile, Continuing Jobless Claims climbed to 1.923 million from 1.885 million, while the four-week average…