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Forex traders say factors such as unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiment. The rupee depreciated 28 paise to 94.77 against the US dollar in early trade on Thursday as market sentiment took a dramatic turn after reports emerged that the US and Iran are discussing a 14-point Memorandum of Understanding (MOU) aimed at reducing tensions and reopening negotiations.Forex traders said Brent oil prices, which had fallen to $98 on the US-Iran peace deal, edged slightly higher to $101 per barrel after investors weighed the prospects for a Middle East peace deal.Moreover, factors such as unabated…
The AUD/JPY cross gathers strength near 113.30 during the early European session on Thursday. The Australian Dollar (AUD) edges higher against the Japanese Yen (JPY) on improved risk sentiment following reports that the United States (US) and Iran are close to a deal to end the war.An Iranian official said on Wednesday that it was reviewing a US peace proposal that sources said would formally end the war while leaving unresolved the critical US demands that Iran suspend its nuclear program and reopen the Strait of Hormuz. CNN reported that Iran is expected to hand over its reply on Thursday to mediators about…
India’s efforts to draw more dollar investments, likely from non-residents, would probably need central bank support to cover exchange risks while ensuring yields that exceed those currently offered by the global markets, particularly the US, economists said.”We are pencilling in a large balance of payment (BOP) deficit of around $68 billion in FY27. Unless the global backdrop changes to lower oil prices, this is the gap that will likely need to be plugged via the forex deposit scheme being considered,” Nomura’s Sonal Varma said in a report.After a 6% retreat in the currency in 2026 and the worst fiscal-year fall…
Mumbai: The rupee joined continental peers on Wednesday to log its steepest single-day gains in more than a month, climbing 67 paise through a session marked by a $8/barrel retreat in crude oil prices, after Iran and the US indicated they would redouble diplomatic efforts to break the deadlock in peace talks. Stocks climbed while bond yields slipped below 7%.From Tuesday’s life-time closing low of 95.28 to a dollar, the rupee advanced to 94.61/$ at close Wednesday, climbing to reflect the broader relief expected from lower automotive fuel prices in a country that is import-dependent for four-fifths of its energy…
The Bank of Japan (BoJ) board members shared their views on the monetary policy outlook on Thursday, per the BoJ Minutes of the March meeting. Key quotesSeveral members believe it was suitable to keep policy rate at 0.75%. Members express concern over inflation rebound driven by rising oil prices. Some members say amid heightened uncertainties in Middle East, maintaining policy rate steady was appropriate. Member says central bank should soon modify deeply negative real interest rate. One member noted no evidence past rate increases have reduced stimulus impact on economy.Members agreed central bank should continue raising rates as economy and prices improve. One member said from next policy meeting…
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…