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,The Reserve Bank of India has conducted more than $2 billion in FX swaps over the last two days to offset the drain in liquidity caused by spot dollar sales, four bankers said, suggesting a focus on containing currency pressures without exacerbating banking liquidity tightness.The central bank has stepped up spot market intervention amid equity outflows, higher demand linked to bullion imports and increased hedging pile up pressure on the rupee. The currency plunged 0.8% on Wednesday to an all-time low of 91.7425.Spot intervention drains rupee liquidity, an effect the RBI can counter through dollar/rupee buy-sell FX swaps, in which…
The Japanese Yen (JPY) touches a fresh weekly low against its American counterpart during the Asian session on Thursday amid a combination of negative factors. The global risk sentiment gets a strong lift in reaction to US President Donald Trump’s U-turn on Greenland and undermines demand for traditional safe-haven assets, including the JPY. Apart from this, the recent chaotic selloff in Japan’s bond markets, led by concerns about expansionary fiscal policy under Prime Minister Sanae Takaichi, keeps the JPY bulls on the sidelines.However, expectations that Japanese authorities would step in to stem further weakness in the domestic currency could act…
Gold price ( XAU/USD) trimmed gains to near $4,790 during the early Asian session on Thursday. The precious metal retreats from a record high of $4,888 after US President Donald Trump backs off the European tariff threat and announces a framework Greenland deal. Bloomberg reported on Wednesday that Trump said he would step back from imposing tariffs on goods from European nations opposing his effort to take possession of Greenland. He added that the United States and the North Atlantic Treaty Organization (NATO) had “formed the framework of a future deal with respect to Greenland.” Hopes for a solution in…
GBP/USD turns negative on the day following remarks by the US President Donald Trump in Davos who said that he would not use excessive force to get Greenland. At the time of writing, the pair traded at 1.3433, down 0.03%.Sterling edges lower as improving risk sentiment offsets hotter UK inflation and pressures the Dollar lessMarket sentiment improved following comments of Trump in Davos. Despite insisting on negotiating with Denmark, he refrained from using the tariffs word, used over the weekend when he imposed 10% duties over eight countries including Denmark.Economic data has taken the backseat over geopolitical issues, which so…
The last time the rupee saw a steep single-day fall was on November 21, 2025, when it plummeted 93 paise. The rupee crashed on Wednesday to close at an all-time low of 91.6950, weighed down by a host of factors including outflows due to FPI selling in the Indian equity markets, corporate demand, ripple impact of the EU’s push back against aggressive US stance to acquire Greenland, and continuing uncertainty on India’s tariff agreement with the US.The Indian currency slumped about 73 paise vs previous close of 90.97. Opening weaker at 91.10 per USD, the rupee tested an all- intraday…
The Indian rupee closed at its weakest level on record on Wednesday, amid risk aversion due to the US-Greenland dispute, unwinding of yen carry trades in the emerging markets, and a broad selloff from local stocks and bonds.The currency, which was Asia’s worst performing in 2025, weakened to an all-time intraday low of 91.74/$1, and later closed at an all-time low of 91.695/$1 on Wednesday.The rupee had closed at 90.97/$1 on the previous day. The central bank, which usually sells dollars to curb excess weakness in the rupee, stayed away and did not intervene, traders said.AgenciesThe rupee has already lost…
Since both the New Zealand Dollar (NZD) and the Australian Dollar (AUD) have links to commodities, historically they have been viewed as ‘risky’ currencies which tend to rally when growth prospects are strong and vice-versa, Rabobank’s FX analyst Jane Foley reports. Commodity exports cushion downside risk for AUD and NZD”The evolving and complex geopolitical backdrop has the potential to skew that relationship. In addition to its gold exports, Australia is a growing source for rare earths and both countries benefitted from solid food exports in 2025 – the latter potentially being subject to more inelastic demand than other commodities (dependent…
The rupee plunged to a record low and suffered its biggest single-session fall in two months on Wednesday, as a global bond rout and U.S. threats to acquire Greenland kept investors on edge and amplified concerns over outflows.The rupee fell for the sixth straight session, slipping to an all-time low of 91.7425 against the dollar. It closed down 0.8% at 91.6950 against 90.9750 previous close.The fall was exacerbated as the Reserve Bank of India stayed away from the market, and did not provide dollar supply, traders said.The rupee, the worst performing Asian on the day, is down 2% so far…
The Indian Rupee (INR) plunges to record lows against the US Dollar (USD) on Wednesday. The USD/INR rallies to near 92.00 as the Indian Rupee faces intense selling pressure due to consistent outflow of foreign funds from the Indian stock market and the risk-off market mood amid tensions between the United States (US) and the European Union (EU) over Greenland.Foreign Institutional Investors (FIIs) are consistently dumping their stake in the Indian stock market due to the absence of a trade deal announcement between the US and India, keeping demand for US Dollars sustained among Indian importers. So far in January,…
2025 was the year of the worst underperformance for the Rupee relative to the Asia Dollar index since 2013. The 40 currency trade-weighted REER is now at 97.5 and threatening to move towards levels not seen since 2014.Therefore, there are 2 aspects to consider here: Expectations for overall Dollar movement and idiosyncratic considerations for the RupeeThere are complex geopolitical and macroeconomic considerations at play in 2026, which will determine the way the overall Dollar behaves.1) The US labour market is weakening, but inflation is still high. The market is pricing 2 cuts of 25bps each by the Fed till the…