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EUR/GBP recovers its recent losses from the previous session, trading around 0.8780 during the European hours on Wednesday. The currency cross gains ground as the Pound Sterling (GBP) declines following the release of weaker Consumer Price Index (CPI) data from the United Kingdom (UK) for November.The UK headline CPI rose 3.2% year-over-year (YoY) in November, above the Bank of England’s (BoE) 2% inflation target. Markets predicted a 3.5% growth in the reported period against the rise of 3.6% in October. Meanwhile, the monthly UK CPI arrived at -0.2% in November, versus a rise of 0.4% reported in October.The UK core…

A day after crossing 91 to the dollar mark and hitting an all time low, the rupee made a smart recovery on Wednesday aided by RBI intervention in the forex market.The development also comes a day after RBI bolstered its ability to intervene in the market by absorbing $5 billion from market participants via a three-year USD/INR buy-sell swap.The Indian currency is currently trading at 90.3475 per USD against the previous close of 91.0275. Abhishek Goenka, Founder & CEO, IFA Global, said the rupee saw a sharp intraday recovery today, strengthening from levels near ₹91.05 to around ₹90.00, aided by…

Mumbai India’s central bank intervened aggressively in currency markets on Wednesday, selling dollars to prop up the rupee, bankers said, echoing its earlier heavy-handed efforts to stem a one-way decline in the currency.The rupee rallied to an intraday high of 89.75 against the US dollar on the interbank order matching system, from near 91.00 seen prior to the intervention. It was last trading at 90.28.”At about 91, the rupee appears overly depreciated. The central bank had stayed relatively light on FX management in December (until now),” said VRC Reddy, treasury head at Karur Vysya Bank.The intervention on Wednesday matched Reserve…

The rupee witnessed high volatility in early trade on Wednesday, as support from easing crude oil prices was offset by uncertainty over the India-US trade deal and persistent foreign fund outflows. Forex traders said the key driver of rupee weakness in December was continued FPI selling across both equity and debt markets, with foreign investors repeatedly selling several billion dollars’ worth of Indian assets on a daily basis in the last few months, the selling intensifying in the last two months. However, with Brent crude oil prices hovering near recent multi-year lows of $59 per barrel, the local unit was…

Gold price (XAU/USD) extends its upside to near seven-week highs above $4,300 during the Asian trading hours on Wednesday. The precious metal gains momentum as the US labor market remains relatively resilient but shows signs of slowing. The mixed US employment report for November reinforces bets of further rate cuts by the US Federal Reserve (Fed) and weighs on the US Dollar (USD). Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.The US central bank delivered its third 25-basis-point rate cut at the December policy meeting last week. However, Fed policymakers are divided on whether additional…

The rupee descended to a fresh record low, breaching the 91-a-dollar mark for the first time before ending 15 paise weaker at 90.93 against the greenback on Tuesday. Axis Bank chief economist Neelkanth Mishra on Tuesday said the rupee is likely to depreciate further, and there is no need to panic over the movements in the domestic currency, which breached its historic low earlier in the day.Mishra, who is also a part-time member in the Economic Advisory Council to the PM, said it will be wiser for the RBI to not target a particular level in its interventions.”The reason I…

The USD/JPY pair attracts some sellers near 154.80 during the early Asian session on Wednesday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) amid growing speculation that the Bank of Japan (BoJ) will hike rates to 0.75% on Friday. The US Nonfarm Payrolls (NFP)rose by 64,000 in November after declining 105,000 in October, the US Bureau of Labor Statistics (BLS) reported on Tuesday. This reading came in stronger than the market expectation for an increase of 50,000. The report also showed that NFP declined by 105,000 in October. Meanwhile, the Unemployment Rate in the US climbed to 4.6% in November…

The Rupee on Tuesday breached the psychologically crucial 91 to the US Dollar mark to close at an all time low, weighed down by factors such as continuous selling by FPIs in the equity and debt markets, dollars getting sucked out due to the $5 billion USD/INR Buy/Sell swap, a strong greenback and India’s tariff negotiations with the US getting prolonged.The Indian currency weakened about 30 paise to close at 91.0275 per USD against previous close of 90.73. Intraday, it tested a high/low of 90.7625/ 91.08.The Rupee has depreciated 100 paise from 90 to 91/USD in just nine trading sessions.…

The GBP/USD surges 0.42% on Tuesday as the latest US jobs report revealed the labor mark weakness, while Retail Sales were unexpectedly unchanged from September figures, an indication of consumers’ resilience. At the time of writing, the GBP/USD trades at 1.3432 after reaching a daily low of 1.3355.Sterling rallies after softer US NFP figures, flat Retail Sales reinforcing the need for rate cutsUS Nonfarm Payrolls in November came at 64K, but better than the 50K expected, an improvement compared to October’s -105K print. The data pushed the Unemployment Rate from 4.4% to 4.6%, above estimates of 4.5% by Federal Reserve…

Markets extended their downward spiral on Tuesday as the rupee breached the psychologically critical 91-mark against the US dollar for the first time, triggering widespread risk aversion across sectors. The BSE Sensex plunged 533.50 points, or 0.63 per cent, to close at 84,679.86, while the NSE Nifty fell 167.20 points, or 0.64 per cent, to settle at 25,860.10. The currency touched a fresh all-time low of 90.87 during the session, amplifying concerns over persistent foreign institutional investor selling and weak global cues. Foreign investors extended their selling streak to the twelfth consecutive session, offloading equities worth ₹1,468 crore, adding to…