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India’s foreign exchange reserves rose to a near three-month high of $692.9 billion as of July 31, data from the Reserve Bank of India showed on Wednesday.Reserves jumped nearly $10.5 billion compared to the previous week, in their biggest surge since the week ended January 30.A larger pile of foreign exchange reserves gives the central bank greater capacity to defend the rupee, which has been hit by oil price volatility generated by the U.S.-Israeli war with Iran, clouding India’s macroeconomic outlook.Traders said the sharp increase in the size of reserves can be attributed to dollar inflows from a foreign-currency deposit…
The rupee gained 39 paise to 94.89 against the US dollar in early trade on Wednesday supported by falling crude oil prices following progress in US-Iran talks and a pause in planned strikes.Forex traders said investors are closely awaiting the upcoming RBI monetary policy decision for further cues.At the interbank foreign exchange market, the rupee opened at 94.90, then touched 94.89, registering a gain of 39 paise from its previous close.On Tuesday, the rupee closed at 95.28 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.80, down…
The USD/CAD pair trades with a positive bias for the fourth straight day and currently hovers around the 1.4070 region, or a nearly one-week high set the previous day. Spot prices, however, lack bullish conviction amid a combination of diverging forces, which warrants caution before positioning for an extension of the recent bounce from sub-1.4000 levels or the lowest since June 17.Renewed hopes of a potential US-Iran deal to reopen the Strait of Hormuz drag crude oil prices to a nearly four-week low and undermine the commodity-linked Loonie, which, in turn, is seen supporting the USD/CAD pair. Meanwhile, weaker oil…
Currency markets paused for breath on Wednesday as pressure on the Japanese yen eased following recent bouts of intervention and a forceful show of U.S. support, while the dollar held near six-week lows on fresh optimism over the Middle East.The yen was slightly firmer at 157.60 per U.S. dollar, after easing about 0.4% from Monday’s high of 155.20 in the previous session. It remained well above recent 40-year lows of around 164 per dollar.The U.S. will do “whatever it takes” to support Japan’s efforts to stabilize the yen, Treasury Secretary Scott Bessent said on Tuesday, after last week’s joint intervention…
The Reserve Bank of India (RBI) is set to announce its bi-monthly monetary policy decision on Wednesday at 10:00 AM IST (04:30 GMT), another meeting coming at a time when uncertainty remains high over the duration and economic fallout of the ongoing Middle East conflict.RBI seen on hold as inflation remains within target bandAnalysts at Commerzbank expect the Reserve Bank of India to maintain its current policy stance, noting that the RBI is “expected to leave the benchmark repurchase rate unchanged at 5.25% at its next meeting on 5 August.” While they acknowledge that “inflation risks remain tilted to the…
The local currency continued to benefit from positive foreign inflows, a softer dollar and lower crude oil prices The rupee appreciated about 0.5 per cent, or 48 paise, over the past week to close at 95.38 against the dollar on Tuesday. The local currency continued to benefit from positive foreign inflows, a softer dollar and lower crude oil prices. The Reserve Bank of India’s (RBI) recent measures have also lent support. Announced during the previous monetary policy, the steps include incentives for overseas dollar deposits and easier access to government securities for foreign investors. These measures have helped attract capital…
West Texas Intermediate (WTI) US Oil is falling sharply on Tuesday, trading around $75.70 per barrel at the time of writing, down 3.91% on the day and at its lowest level in a week. Oil prices remain under pressure after a series of statements raised hopes of a de-escalation in tensions between the United States (US) and Iran, potentially leading to the reopening of the Strait of Hormuz.US Treasury Secretary Scott Bessent said in an interview with CNBC that talks with Iran are ongoing and that a deal could be reached as soon as Tuesday or Wednesday to reopen the…
BNY’s Geoff Yu notes Copper is surging as tighter availability meets uncertainty over United States (US) tariffs, with shipments to the United States draining inventories elsewhere and constrained mine output leaving the market exposed to squeezes. Yu highlights a two‑month high near $14,000/ton in London, steep LME backwardation signaling short‑term scarcity, and year‑to‑date gains driven by trade policy and energy transition themes.Tariffs collide with scarce metal”Copper is surging as tighter availability collides with uncertainty over U.S. tariffs.””Copper markets were in focus as the metal climbed to a two-month high of almost $14,000/ton in London, with traders watching swelling U.S. inventories…
The rupee ended nearly unchanged on Tuesday as divergent impulses ranging from portfolio inflows and importer hedging demand to caution ahead of the Reserve Bank of India’s monetary policy decision kept the currency in a narrow band.The rupee closed at 95.3775 per dollar, little changed from its close of 95.3375 in the previous session.Traders pointed to foreign banks’ dollar sales – likely related to inflows for equity fundraises – alongside a pick-up in hedging activity from local oil companies and gold importers.Meanwhile, an improvement in banking system rupee liquidity helped cool dollar-rupee forward premiums, with both near and far tenor…
Commerzbank’s Tatha Ghose notes Turkey’s July Consumer Price Index (CPI) slowdown to 31.7% year-on-year masks still-strong underlying price momentum, with smoothed headline and core inflation above 2% month-on-month. He highlights skepticism over Istanbul CPI revisions, continued reliance on FX conversion limits and support schemes, and concludes that July data and policy changes offer no clear relief for the Turkish Lira.High CPI and soft controls persist”Turkey’s latest CPI data showed headline inflation slowing to 31.7%y/y in July from 32.1%y/y in June, with prices up by 1.78%m/m. Core measures also appeared to move in a benign direction in year-on-year terms. But these…