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The Reserve Bank has put in place revised norms for entities dealing in foreign exchange, whereby fresh licences will not be issued to money changers. The Foreign Exchange Management (Authorised Persons) Regulations, 2026 is aimed at rationalising the authorisation and renewal framework for authorised persons and extend the principal-agent model for delivery of foreign exchange facility while maintaining appropriate checks and balances, the central bank said on Wednesday. “The Reserve Bank has reviewed the existing framework for authorisation of any person as an Authorised Person under the Foreign Exchange Management Act, 1999, with the objective to rationalise the framework to…
BNY’s Geoff Yu argues Latin American FX and equities now represent a single crowded ‘total return’ trade, with all regional currencies still overheld while bond holdings begin to reverse unevenly. In Mexico, expectations for lower rates are driving more FX hedging ahead of a likely 25 bp Banxico cut, even as sovereign bond demand stays firm.Carry trade meets growing hedging pressures”iFlow signaled throughout this year that Latin American equities and Latin American currencies are now essentially the same position: every Latin American currency remains net overheld. Until recently, every single sovereign bond market in the region was also comfortably overheld.…
Brown Brothers Harriman’s (BBH) Elias Haddad reports NZD/USD has rebounded toward 0.6000 on broad US Dollar (USD) weakness, nearly erasing war-related losses. New Zealand’s Q1 labour data were mixed, with softer employment but firm wage growth. Swaps now discount a full 25 bps Reserve Bank of New Zealand (RBNZ) hike in July and 125 bps over 12 months, though Haddad warns the RBNZ may ultimately deliver fewer hikes, posing a headwind to NZD.Mixed data versus hawkish market pricing”New Zealand Q1 labor market data was mixed.””The RBNZ sectoral factor inflation model dipped to 2.7% y/y in Q1 vs. 2.8% in Q4…
The Indian rupee posted its best single day gain in a month on Wednesday, joining a global relief rally on rising hopes of a cessation of hostilities between the U.S. and Iran, which sparked sharp gains across Asian currencies.The White House believes it is getting close to an agreement with Iran on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations, Axios reported on Wednesday.Brent crude futures were last down 7% at $102 per barrel, taking a fresh leg lower after the report. Oil prices had retreated earlier in the day…
The Indian rupee posted its best single day gain in a month on Wednesday, joining a global relief rally on rising hopes of a cessation of hostilities between the U.S. and Iran, which sparked sharp gains across Asian currencies.The White House believes it is getting close to an agreement with Iran on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations, Axios reported on Wednesday.Brent crude futures were last down 7% at $102 per barrel, taking a fresh leg lower after the report. Oil prices had retreated earlier in the day…
Here is what you need to know on Wednesday, May 6:Volatility in financial markets heighten midweek as investors react to latest headlines surrounding the conflict in the Middle East and keep a close eye on the Japanese Yen’s action following another suspected foreign exchange intervention. Later in the day, the US economic calendar will feature private sector employment data for April. US Dollar Price Today The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Japanese Yen. USDEURGBPJPYCADAUDNZDCHFUSD-0.35%-0.41%-1.06%-0.18%-0.75%-1.05%-0.34%EUR0.35%-0.06%-0.70%0.18%-0.39%-0.73%0.03%GBP0.41%0.06%-0.64%0.25%-0.33%-0.64%0.11%JPY1.06%0.70%0.64%0.88%0.30%-0.02%0.77%CAD0.18%-0.18%-0.25%-0.88%-0.57%-0.89%-0.13%AUD0.75%0.39%0.33%-0.30%0.57%-0.31%0.44%NZD1.05%0.73%0.64%0.02%0.89%0.31%0.76%CHF0.34%-0.03%-0.11%-0.77%0.13%-0.44%-0.76% The heat map shows percentage changes of major currencies…
The Indian rupee rose on Wednesday, tracking a rally in Asian peers after the U.S. signalled it may be nearing a deal with Iran, which drove oil prices lower and lifted regional equities as investor sentiment improved. The rupee rose 0.2% to 95.0725 per dollar after hitting a record low of 95.4325 in the previous session. Dollar-rupee forward premiums, which reflect the cost of hedging currency exposure, fell, with the 1-year forward implied yield down 9 bps at 3.10%. The rupee has faced persistent strain since the Iran war began, with analysts viewing oil prices as the key driver of…
The rupee appreciated by 23 paise to 94.95 against the US dollar in early trade on Wednesday as Brent crude prices retreated from their elevated level after US President Donald Trump hinted at a possible deal with Iran.Forex traders said oil prices fell to USD 108 per barrel, as signs of easing geopolitical tensions in the Middle East offset the lingering supply concerns.At the interbank foreign exchange market, the rupee opened at 95, then gained some ground and touched an early high of 94.95, registering a gain of 23 paise from its previous low.The rupee was later trading at 95.10…
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 98.30 during the Asian trading hours on Wednesday. The DXY attracts some sellers due to easing tensions in the Middle East. The US April ADP Employment Change report will be the highlight later on Wednesday. US President Trump announced on Tuesday that he was pausing the US operation to escort commercial ships through the Strait of Hormuz “for a short period of time,” citing what he said was “great progress” toward an agreement with Iran. His statement came…
The rupee closed at 95.28 against the US dollar Tuesday. Its slide past the psychologically significant level of 95/$ has already prompted the central bank to impose curbs on banks’ net open foreign exchange positions late March. Renewed pressure in May has fuelled market expectations Mint Road may take more steps to stem the slide, with measures targeted at NRIs to draw in dollar deposits – the most durable and readily accessible route to replenish a fast-depleting cash stash. AgenciesHere’s a quick wrap of RBI measures through the decades to cushion INR2008–09: Lehman Brothers collapse Raised FCNR(B) deposit rate ceilings…