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India’s central bank conducted foreign-exchange swaps on Tuesday, according to people familiar with the matter, a move that cooled a sharp rise in hedging costs.The Reserve Bank of India conducted buy-sell swaps in maturities of up to one year, with some of these in the one-month segment, the people said, asking not to be named while discussing private matters. In such swaps, the central bank buys dollars from lenders and pledges to sell them at a later date.Following the step, one-month dollar-rupee onshore forward yields fell to a low of 5.80%, down sharply from a four-and-a-half-year high of 6.99% hit…
The rupee rose 3 paise to settle at 89.65 (provisional) against the US dollar on Tuesday on the back of a weaker greenback. However, a rise in global crude oil prices, coupled with foreign capital outflows, prevented sharper gains in the local unit, according to forex traders. At the interbank foreign exchange, the rupee opened at 89.67 and traded in the range of 89.59-89.85 before settling at 89.65 (provisional) against the greenback, up 3 paise from its previous close. The rupee on Monday pared initial gains to settle slightly down by 1 paisa at 89.68 against the US dollar. Anuj…
The rupee ended flat on Tuesday, hemmed in by persistent dollar demand from local corporates and the non-deliverable forwards market, which outweighed positive cues from gains in most regional currencies.The rupee closed at 89.65 against the dollar, unchanged from its closing level in the previous session.Traders pointed to dollar bids from local oil companies, among other importers, alongside lingering downward pressure on the currency from the NDF market, which at least partially reflects speculative pressure on the unit.The rupee has eased off its record lows and onshore traders “remain hesitant to build longs (on USD/INR),” a trader at a state-run…
Bankers are urging the Reserve Bank of India to intervene as a surge in dollar liquidity heading into year-end and pressure in the non-deliverable forward market have pushed rupee forward premiums to multi-year highs. Outsized moves in the forward market intensified over the last week as the dollar glut collided with regulatory and balance-sheet constraints, leading to a spike in premiums. Half a dozen bankers said central bank intervention will be necessary to ease the pressure.The one-month dollar/rupee forward premium rose to 55 paisa on Tuesday, its highest level in more than six years and over three times the level…
The Pound Sterling (GBP) trades broadly higher against its major peers, and revisits the almost 12-week high to near 1.3500 against the US Dollar (USD) during European trading hours on Tuesday. The British currency gains amid expectations that the Bank of England (BoE) will follow a gradual monetary easing path in 2026.Last week, the BoE reduced interest rates by 25 basis points (bps) to 3.75%, with a narrow majority vote and guided that “rates are on a gradual path downward”. Four of nine members-led Monetary Policy Committee (MPC) dissented on the interest rate cut amid upbeat wage growth outlook, a scenario…
Global central banks are gradually diversifying their foreign exchange reserves away from the US dollar and the euro, increasing exposure to other currencies and gold, highlighted a report by CareEdge Ratings.The report showed that the share of the US dollar in global central bank reserves has steadily declined over the years.It stated “Share of the US Dollar and the Euro in the global central bank reserves has been steadily declining. However, the shares of GBP, Yen, and CNY have increased”During the period 2000-09, the US dollar accounted for 66.1 per cent of total global central banks reserves. This share fell…
The rupee fell 5 paise to 89.73 against the US dollar in early trade on Tuesday amid FII outflows and a weak opening in the domestic equity markets. However, a weaker greenback and a drop in global crude oil prices prevented sharper losses in the local unit, according to forex traders. At the interbank foreign exchange, the local unit opened at 89.67 against the dollar but lost ground to trade at 89.73, down 5 paise from its previous close. The rupee on Monday pared initial gains to settle slightly down by 1 paisa at 89.68 against the US dollar, as…
The Australian Dollar (AUD) gains ground against the US Dollar (USD) on Tuesday, following the release of the Reserve Bank of Australia (RBA) Minutes of its December monetary policy meeting. Additionally, the AUD/USD pair appreciated as the US Dollar (USD) faced challenges amid growing expectations that the Federal Reserve will continue easing policy, reinforced by President Donald Trump’s calls for lower borrowing costs.The RBA Meeting Minutes showed that board members signalled growing less confident that monetary policy remains restrictive, as evidence mounts that inflation pressures may prove more persistent than previously expected.Policymakers also indicated that they would assess policy at future meetings, noting that…
US President Donald Trump said on Monday the United States (US) would maybe keep and maybe sell the oil it had seized off the coast of Venezuela in recent weeks, Reuters reported on Monday.Trump added that the US would also keep the seized ships.”Maybe we will sell it, maybe we will keep it,” Trump said, adding it might also be used to replenish the United States’ strategic reserves.Market reactionAt the time of writing, the West Texas Intermediate (WTI) is trading 2.51% higher on the day to trade at $57.95. WTI Oil FAQs WTI Oil is a type of Crude Oil sold…
West Texas Intermediate (WTI) Crude Oil edges higher on Monday as escalating tensions between the United States (US) and Venezuela add a modest geopolitical risk premium to Oil markets. At the time of writing, the US benchmark trades around $57.70, up nearly 2% on the day, extending its rebound after sliding to year-to-date lows late last week.From a technical standpoint, the near-term outlook for WTI has turned slightly constructive, though the broader trend remains tilted to the downside, with prices down nearly 27% year-to-date.On the daily chart, WTI is currently testing the $58.00-$59.00 zone, a former support zone now acting…