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Mumbai: The rupee dived to a fresh lifetime low Wednesday for the third straight session of successive plunges, as rising crude oil prices fuelled hedging and boosted the demand for dollars. This outweighed the limited support from New Delhi’s latest move to raise import taxes on gold and silver to discourage private bullion buying. The rupee traded at a record intraday low of 95.80/$ and later closed at 95.70/$. It had previously closed at 95.62/$. It opened at 95.61/$ and traded in the range of 95.80/$ and 95.51/$ on Wednesday. The rupee has weakened 2.7% in FY27 so far. The…
US President Donald Trump arrived in Beijing for a state visit to China, where he will meet with Chinese President Xi Jinping to discuss topics including trade and the Iran war, Bloomberg reported on Wednesday. This is the first state visit to China by a US leader in nine years.Ahead of his arrival, Trump and other administration officials indicated that he intended to use the meeting as an opportunity to press the Chinese leader on many subjects, such as Beijing’s role in the unresolved Middle East conflict to rolling back trade barriers for US businesses.Market reactionAt the time of writing, the AUD/USD pair is…
The Government’s move on Wednesday to hike import duty on preious metals such as gold and silver to curb demand and curtail Dollar outflows did not bring respite for the Rupee, which closed at an all time low.The Indian currency closed eight paise weaker at 95.71 per US Dollar as pricey crude oil prices, FPI sales in the domestic equity market and importer demand continued to pile pressure on it.In a sign that the Indian currency (INR) may test the 96 mark in the next couple of trading session, going by the current rate of depreciation, intraday it tested a…
Dow Jones Industrial Average (DJIA) futures slipped onto the back foot through European and early US hours on Wednesday, struggling to hold above 49,500 after fading from overnight highs near 49,800. The S&P 500 and Nasdaq Composite are also nursing losses, with risk sentiment souring on a blistering wholesale inflation print and a hawkish chorus from Federal Reserve (Fed) officials. Add in a high-profile Senate vote to install Kevin Warsh atop the Fed and President Trump’s arrival in Beijing for a high-stakes summit, and traders have plenty of reasons to keep risk dialled down.Hot PPI deepens the pipeline inflation storyThe…
ING economists Gerben Hieminga and Rico Luman argue that the Middle East conflict and closure of the Strait of Hormuz have sharply lifted oil-based bunker costs, improving LNG’s relative appeal. Their modelling shows LNG price increases lag Marine Gas Oil, making LNG the most attractive near-term hedge and a commercially compelling transitional decarbonisation fuel for shipping.Oil shock favours LNG in shipping”Our analysis translates the current geopolitical risk into a simple message for shipowners and cargo owners: when oil products spike and gas rises less, the relative economics of LNG and (to a lesser degree) methanol and even ammonia improve quickly,…
The Indian rupee weakened to an all-time low on Wednesday, extending its losing streak, as overseas debt repayments and importer-hedging demand outweighed limited support from New Delhi raising taxes on gold and silver shipments.The rupee weakened to 95.7950 per dollar, edging past its previous low of 95.7375 hit just a day earlier.The energy shock from the prolonged U.S.-Iran war that has effectively shut the Strait of Hormuz has hurt India’s macroeconomic outlook and strained its current account balance. Economists have lowered their growth forecasts, raised inflation projections and warned of sustained pressure on the rupee.The currency, which ended down 0.1%…
Gold (XAU/USD) sticks to modest intraday losses through the early European session on Wednesday, albeit it lacks bearish conviction and remains confined within the previous day’s broader trading range. Hotter-than-expected US consumer inflation figures released on Tuesday reaffirmed market expectations for a more hawkish US Federal Reserve (Fed). This, along with geopolitical uncertainties, helps the US Dollar (USD) to preserve Tuesday’s gains to its highest level in over one week and keeps the precious metal depressed for the second straight day.The US Bureau of Labor Statistics (BLS) reported on Tuesday that the headline US Consumer Price Index (CPI) rose from…
The rupee rebounded by 16 paise from its all-time low to 95.52 against the American currency in early trade on Wednesday amid hopes of lower demand for the US dollar due to import curbs.Forex traders said market participants are expecting some resilience in the dollar-rupee pair as gold importers curb their demand.The Indian government raised import tariffs on Gold and Silver to 15 per cent from 6 per cent to curb overseas purchases of the metals and ease pressure on the Country’s FX reserves.However, elevated crude oil prices and the strength of the American currency in the overseas market weighed…
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining steady after two days of gains and trading around 98.30 during the Asian hours on Wednesday.The Greenback gains ground on the volatile geopolitical climate in the Middle East following recent comments from US President Donald Trump. While claiming that Iran is “under control,” the President warned of a binary outcome: a new deal or total “decimation.” In response, Iranian Deputy Foreign Minister Kazem Gharibabadi maintained a firm stance, asserting that any viable peace agreement must include reparations, recognized sovereignty over…
US President Donald Trump said that “we have Iran very much under control.” But also reiterated that “we’re either going to make a deal, or they’re going to be decimated,” the New York Times reported on Tuesday.Meanwhile, Iran’s deputy foreign minister Kazem Gharibabadi stated that Iran’s position was that any peace deal must include reparations for Iran, Iranian sovereignty over the Strait of Hormuz and an end to US sanctions.Market reactionAt the time of writing, the West Texas Intermediate (WTI) is down 0.31% on the day at $98.35. WTI Oil FAQs WTI Oil is a type of Crude Oil sold…