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The Indian rupee is set to encounter fresh headwinds on Thursday after hawkish signals from some Federal Reserve policymakers lifted the dollar and US bond yields, compounding pressure from an unabated rise in oil prices.The rupee is expected to open in the 94.90-94.95 range, traders said, after settling at 94.8450 on Wednesday.The currency is on course to log its third consecutive weekly decline, having wiped out nearly all of the gains made earlier in the month following rare central bank measures aimed at curbing excessive speculation.Overnight, the Fed left policy rates unchanged, but the decision was its most divided since…
Mumbai: The rupee ended at a record closing low of 94.85/$ Wednesday, pressured by high oil prices and a persistent dollar demand, despite the central bank’s best efforts to keep public oil companies beyond the spot dollar market. The rupee had previously closed at 94.54/$.”Higher oil prices are significantly increasing India’s import bill and inflation risks, limiting any meaningful recovery in the rupee. The currency is consistently facing selling pressure on rebounds, indicating a lack of support at stronger levels,” said Jateen Trivedi, research analyst – currency at LKP Securities.The Reserve Bank of India (RBI) stepped in the market to…
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $104.90 during the early Asian trading hours on Thursday. The WTI price climbs amid an escalating naval blockade of Iranian ports and the United Arab Emirates’ (UAE) shock withdrawal from the Organization of the Petroleum Exporting Countries (OPEC). US President Donald Trump said on Wednesday that he will continue the naval blockade of Iran until he secures a deal with Tehran to address the country’s nuclear program, per Bloomberg. Trump rejected proposals to reopen the vital waterway, declaring the economic strangulation more effective than military bombardment.Iran warned on Wednesday of “unprecedented military…
Dow Jones Industrial Average futures drifted lower through Wednesday’s session, trading close to 48.8K at the time of writing after rejecting levels above 49.3K during the prior day. The S&P 500 hovered around the flatline alongside the Nasdaq Composite, with traders holding back ahead of the Federal Reserve (Fed) decision later in the session and a heavy slate of mega-cap technology earnings due after the closing bell.Durable Goods beat keeps inflation watch liveMarch Durable Goods Orders rose 0.8% MoM, ahead of the 0.5% consensus and a sharp turnaround from the prior month’s 1.2% contraction. The core reading, Nondefense Capital Goods…
OCBC strategists Sim Moh Siong and Christopher Wong note USD/JPY stayed range-bound after a mildly hawkish Bank of Japan (BoJ) hold, as cautious guidance and high Oil prices erased initial Yen (JPY) gains. They sees sustained high Oil prices limiting downside below 158, while rallies into the 160s risk Ministry of Finance (MoF) intervention, and it maintains an end-2026 USD/JPY target of 155.High oil and MoF risk cap extremes”USD/JPY was choppy but ultimately went nowhere after the Bank of Japan delivered a mildly hawkish hold, keeping the policy rate at 0.75%.””Sustained high oil prices make a move below USD/JPY 158…
The rial began to slide two days ago, hitting the record low Wednesday. | Photo Credit: Raheb Homavandi Iran’s national rial currency hit a record hit Wednesday of 1.8 million to $1 as a shaky ceasefire with the US and Israel still holds.The rial had remained stable for weeks during the war, which began February 28, in part because there was little trading or imports coming into the country.The rial began to slide two days ago, hitting the record low Wednesday.Experts warn the fall of the rial is likely to further fuel inflation in a country where many imported goods,…
Traders expect continued weakness unless oil prices ease, with possible stronger intervention from the central bank if the rupee breaches key levels. The Indian rupee fell to a record closing low on Wednesday, pressured by rising oil prices as efforts to end the Iran conflict remained stalled, while persistent foreign selling of Indian assets added to the strain.The rupee closed at 94.8450 per dollar, down 0.3% on the day.The currency has drifted back toward record lows as the impact of central banks’ rupee supportive measures faded, with concerns over India’s exposure to higher energy prices weighing on sentiment.Dollar sales by…
Silver (XAG/USD) edged up from three-week lows near $72.00 earlier on Wednesday, but it failed to find acceptance above $74.00, and is trading practically flat on the daily chart at $73.10 at the time of writing. The US Dollar (USD) remains moderately bid, with all eyes on the US Federal Reserve’s (Fed) monetary policy meeting, due later on Wednesday.The Fed is widely expected to keep interest rates unchanged, but Chairman Jerome Powell, who will likely be at its last meeting in front of the central bank, has to decide between remaining on the Board of Governors or leaving the bank…
The rupee depreciated 13 paise to 94.81 against the US dollar in early trade on Wednesday, as rising global oil prices kept the currency under pressure.Forex traders said elevated crude oil prices and month-end dollar demand amid a broader shift toward safe-haven assets dented investor sentiment.The focus has now shifted to the upcoming US Federal Reserve policy decision. While rates are expected to remain unchanged, the tone will carry more weight than the action, they said.At the interbank foreign exchange market, the rupee opened at 94.79 against the US dollar, then lost some ground and touched 94.81 against the US…
The EUR/USD pair consolidates around 1.1700, inside Tuesday’s trading range, during the Asian trading session on Wednesday. The major currency pair has remained broadly sideways, with investors awaiting monetary policy announcements by the Federal Reserve (Fed) and the European Central Bank (ECB) on Wednesday and Thursday, respectively.Both the Fed and the ECB are expected to leave interest rates unchanged at their current levels, and warn of upside inflation risks amid elevated energy prices due to the prolonged closure of the Strait of Hormuz.Investors will pay close attention to commentaries from Fed Chair Jerome Powell and ECB President Christine Lagarde to…