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After skidding to record lows and flirting with Rs 91 to the dollar this week, the Indian rupee may be closer to the end of its pain than the beginning. An analysis by SBI Research argued that the currency is deep into a depreciation phase driven by geopolitics, tariffs and capital outflows, but one that is statistically closer to exhaustion, setting the stage for a potential rebound in the second half of the next fiscal year, even as near-term volatility remains elevated.The rupee’s sharp turnaround on Wednesday, following decisive intervention by the Reserve Bank of India, has refocused attention on…
The United States (US) Bureau of Labor Statistics (BLS) will publish the all-important Consumer Price Index (CPI) data for November on Thursday at 13:30 GMT.The inflation report will not include CPI figures for October and will not offer monthly CPI prints for November due to a lack of data collection during the government shutdown. Hence, investors will scrutinize the annual CPI and core CPI prints to assess how inflation dynamics could influence the Federal Reserve’s (Fed) policy outlook.What to expect in the next CPI data report?As measured by the change in the CPI, inflation in the US is expected to…
The USD/JPY pair rises to around 155.60 during the early Asian session on Thursday. The US Dollar (USD) edges higher against the Japanese Yen (JPY) on the cautious comments from Federal Reserve (Fed) Governor Christopher Waller. Traders will keep an eye on the US Consumer Price Index (CPI) inflation data for November, which will be released later on Thursday.The Fed’s Waller said on Wednesday the US central bank is not in a rush to cut the interest rates. His remarks could provide some support to the Greenback in the near term. Markets anticipate two rate cuts next year. Fed funds futures are…
GBP/USD drops below 1.3400 on Wednesday as the latest inflation report in the UK dipped sharply ahead of the Bank of England’s (BoE) monetary policy decision. At the same time, the Greenback recovers some ground a headwind for Sterling. At the time of writing, the pair hovers around 1.3350 down 0.48%.Sterling tumbles as November CPI undershoots forecastsThe US economic docket remains scarce, with Fed officials crossing the wires. Governor Christopher Waller —who would be interviewed by the US President Donald Trump, for the top Fed Chair job —, said that rate cuts have positively impacted the employment sector. He added…
The rupee depreciation also reinforces the role of crypto as a global, borderless asset class with growing relevance for Indian investors | Photo Credit: Getty Images/iStockphoto A weakening rupee is once again putting crypto in focus for Indian investors, as dollar-priced assets such as Bitcoin appear more attractive in rupee terms, even as heightened currency volatility prompts selective buying and caution among retail traders.Edul Patel, CEO of Mudrex, attributed this momentum to crypto assets such as Bitcoin being priced in US dollars, while Indian investors track returns in rupees. This creates a dual impact: when the rupee weakens, even flat…
The rupee closed at 90.38 per US dollar against the previous close of 91.0275. | Photo Credit: bluebay2014 The rupee on Wednesday reversed a five-day losing streak, rebounding sharply, apparently aided by RBI’s aggressive intervention in the forex market. The Indian unit strengthened about 65 paise to close at 90.38 per US dollar against the previous close of 91.0275.The $5 billion that the RBI sucked out from the market via the three-year buy-sell swap auction, which was conducted on Tuesday, seems to have come in handy to intervene in the market and pull back the rupee.RBI operationsAmit Pabari, MD, CR…
The Euro (EUR) has benefited from Germany’s fiscal loosening and diversification flows, but stronger US growth projections and resilient consumer spending suggest EUR/USD may remain range-bound in 2026 rather than extending a major rally, Rabobank’s FX analyst Jane Foley reports. Fed upgrades US growth, limiting further USD weakness”While German fiscal spending is expected to finally shake Europe’s largest economy out of stagnation next year, the EUR has been preparing for this for months. Following the loosening of Germany’s debt brake at the start of this year, the EUR took the position of second best performing G10 currency in Q2 after…
The Indian rupee, which had slipped perilously close to 91.1 to the dollar after five consecutive sessions of losses, staged a sharp turnaround on Wednesday after decisive intervention by the Reserve Bank of India, halting a one-way slide and delivering the currency its strongest daily gain in two months.The rupee closed at 90.38 per U.S. dollar, up 0.7% from Tuesday’s close of 91.0275, after having sunk to a fresh all-time low near 91.08 in the previous session. Traders said the rebound began shortly after the spot market opened, when the central bank stepped in forcefully to support the currency, according…
The rupee recovered 55 paise from its all-time low level to close at 90.38 (provisional) against the US dollar after a volatile trade on Wednesday, amid suspected aggressive central bank intervention. Analysts said the rupee’s recent fall against the US dollar was primarily driven by external factors, not domestic economic weakness, and the high volatility in the forex market is expected to persist amid shifting economic and geopolitical cues. The lack of progress in the US–India trade negotiations and extended selling by foreign portfolio investors have weighed on the sentiment, while Brent crude oil prices hovering near USD 60 per…
The Indian rupee soared on Wednesday to post its best one-day gain in two months as heavy-handed intervention by the Reserve Bank of India halted its five-day long slide and blunted budding speculative pressure against the currency.The rupee closed at 90.38 per U.S. dollar, up 0.7% from its close of 91.0275 in the previous session.The currency had dropped to its all-time low of 91.0750 in the previous session. It jumped sharply a little after the spot market opened on Wednesday as the RBI stepped in to shore it up, traders said.The intervention echoed the central bank’s actions in October and…