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SINGAPORE: The dollar firmed on Wednesday as investors awaited a closely watched Federal Reserve rate decision in what was likely to be Chair Jerome Powell’s swan song, with war in the Middle East raging and hopes for an imminent resolution dimming. Currencies held tight ranges in thinned Asia trade, with markets in Japan closed for a holiday and a slew of major central bank decisions still on deck. Against the dollar, the euro last bought $1.1716 while sterling was little changed at $1.3523, as both currencies edged further away from their highs hit earlier this month.The Fed’s policy outcome due…
US President Donald Trump said Iran has asked the US to lift a naval blockade of the Strait of Hormuz while the two sides negotiate an end to the two-month conflict, Bloomberg reported on Tuesday.Trump said on Truth Social on Tuesday that Iran wants the critical waterway for oil and gas shipments open “as soon as possible, as they try to figure out their leadership situation.Mediators in Pakistan expect Iran will submit a revised proposal to end the war in the next few days, CNN reported on Tuesday, citing sources close to the mediation process.Market reactionAt the time of writing,…
The Dow Jones Industrial Average (DJIA) sees marginal gains on Tuesday’s session, with futures holding near 49,200 and the underlying cash index adding roughly 0.1%, propped up by a 5% jump in Coca-Cola (KO) after a stronger-than-expected earnings print. The S&P 500 drops 0.7% and the Nasdaq Composite sheds 1.3%, with both indexes giving back ground after Monday’s record highs. A Wall Street Journal report flagging slowing growth at OpenAI hit chip and AI-exposed names hard, but the bigger story sat in the geopolitical lane: Iran ceasefire talks stalled and Crude Oil ripped higher.Iran talks stall as Trump cancels envoy…
The Rupee on Tuesday closed at a one-month low against the US Dollar, weighed down by hardening crude oil prices and outflow of greenbacks due to continued FPI sales from the Indian equity markets.The Indian currency closed 35 paise down at 94.54 per US Dollar against the previous close of 94.19. Intraday, the Rupee hit a low of 94.5750.Crude oil prices topped the $110 per barrel mark amid reports the US President Donald Trump is unhappy with Iran’s offer to end the war. FPI related outflows from the Indian equity markets amounted to about $223 million on Tuesday.Amit Pabari, MD,…
Gold (XAU/USD) slips to a near one-month low, pressured by a firmer US Dollar (USD) and mounting Oil-driven inflation concerns, as investors await clearer signals on stalled diplomatic efforts between the United States (US) and Iran to end the war. At the time of writing, XAU/USD is trading around $4,571, down roughly 2.37% on the day.This Tuesday marks two months since the US and Israel launched attacks on Iran. While a ceasefire appears to be holding, there has been no meaningful progress toward a second round of peace talks. The United States is reviewing Iran’s latest proposal. Still, early signals…
The rupee depreciated 41 paise to close at 94.56 (provisional) against the US dollar on Tuesday, as elevated crude oil prices and unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiments.Forex traders said the rupee has already weakened quite sharply, factoring in the likely widening of the Current Account Deficit (CAD) and volatile capital flows.Moreover, persistent foreign fund outflows weighed on the rupee, as so far this year, FIIs have pulled out over $19 billion from Indian equities.At the interbank foreign exchange market, the rupee opened at 94.35 against the US dollar, then lost ground and touched an…
The Indian rupee weakened to a near one-month low on Tuesday, pressed by a stubborn rise in oil prices and sustained hedging by local importers against further weakness, underscoring anxiety over the currency’s outlook as it nears the 95 per dollar mark.The rupee touched a low of 94.54 per dollar during the trading session, its weakest level since March 30, before closing at 94.19, down 0.4% on the day.The currency’s losses were contained by dollar sales from state-run banks, most likely on behalf of the Reserve Bank of India, four traders said.Asian currencies were under pressure across the board on…
The Indian Rupee (INR) weakens further after a brief pause against the US Dollar (USD) in the opening session on Tuesday. The USD/INR pair jumps to near 94.50 as elevated oil prices continue to hurt the Indian Rupee.As of writing, the WTI Oil price trades 0.6% higher to near $95.60 and is close to its two-week high of $97 posted on Thursday.Currencies from economies, such as India, which rely heavily on oil imports to meet their energy needs, tend to underperform in a high oil price environment.Oil prices have remained higher due to uncertainty over the reopening of the Strait…
The rupee depreciated 24 paise to 94.39 against the US dollar in early trade on Tuesday, weighed down by elevated crude oil prices and month-end dollar demand amid a broader shift toward safe-haven assets.Forex traders said Brent oil continued to move higher at $109 per barrel, keeping India’s position vulnerable.Moreover, factors such as unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiments further.At the interbank foreign exchange market, the rupee opened at 94.35 against the US dollar, then lost some ground and touched 94.39 against the US dollar in initial trade, registering a fall of 24 paise over…
Gold (XAU/USD) trades with a negative bias below the $4,700 mark for the second consecutive day and slides back closer to last week’s swing low during the Asian session on Tuesday. The uncertainty over the second round of US-Iran peace talks assists the US Dollar (USD) in attracting some buyers, which, in turn, is seen weighing on the commodity. However, expectations for a less hawkish US Federal Reserve (Fed) could limit losses for the non-yielding bullion ahead of the key central bank event risk.Hopes for diplomatic efforts to end the Iran war receded after US President Donald Trump canceled his…