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NZD/USD declines on Monday, trading around 0.5770 at the time of writing, down 0.10% on the day. After briefly touching 0.5790, the pair erased its earlier gains as market sentiment turned more cautious.China’s trade surplus largely exceeded expectations in November, reaching $111.68 billion. This result, driven by a 5.9% YoY increase in exports, highlights the resilience of Chinese external demand. However, the improvement was not enough to sustain the New Zealand Dollar’s (NZD) upward momentum, as markets trimmed risk exposure in the absence of additional catalysts.The US Dollar (USD) remains indecisive ahead of Wednesday’s Federal Reserve (Fed) meeting. Markets are…

India’s weakening currency is triggering a broad, five-channel macroeconomic shock that could reshape everything from corporate sentiment to fiscal accounts, Bank of America Global Research said in a report Monday, arguing that the rupee’s slide “can and will impact various macroeconomic variables in India, if it persists.”The warning lands as the rupee closed at 90.07 per U.S. dollar, slipping 0.1% on the day and cementing a roughly 5% drop this year, the steepest decline among major Asian currencies.5 channels of impactBofA said the rupee’s weakness, nearly 7% over the past year and even larger in real effective terms, is among…

European Central Bank (ECB) policymaker Peter Kazimir said in the European session on Monday that he doesn’t see any reason of monetary policy adjustment in the policy meeting this month.Additional remarksI see no reason to change rates in the coming months, definitely not in December.FX pass through to prices may not be as strong as expected.Remaining vigilant to upside risks has become more important.Overengineering policy around small inflation deviations would introduce unnecessary policy uncertainty.Market reactionEUR/USD trades flat around 1.1660 as of writing. The impact of ECB Kazimir’s comments appears to be insignificant on the Euro (EUR). ECB FAQs The European…

The rupee depreciated 14 paise to close at 90.09 (provisional) against the US dollar on Monday, as elevated crude oil prices and persistent foreign fund outflows dented investor sentiments. Forex traders said multiple pressures, such as sustained importer demand for the American currency, foreign fund outflows from equities, and lingering uncertainty over the India-US trade deal, are keeping investor sentiment fragile. At the interbank foreign exchange market, the rupee opened at 90.07, then gave up ground and fell to an intra-day low of 90.26 against the US dollar, down 31 paise from its previous close. At the end of the…

The Indian rupee ended weaker on Monday as a fall in local equities and marginal slip in Asian currencies weighed on the currency, while traders remained cautious on speculative positions as the rupee settles into a fresh trading range.The local currency closed at 90.07 per U.S. dollar, down 0.1% on the day.Likely portfolio outflows from local stocks troubled the rupee on the day, traders said, while a pick up in exporter hedging and intermittent dollar sales from state-run banks helped keep a lid on its decline.India’s benchmark equity indexes, the BSE Sensex and Nifty 50 fell about 0.7% and 0.9%,…

Japan’s Keidenren Chair Tsutsui said during the European trading session on Monday that negotiators are expected to visit China in January to discuss over trade.Additional remarksIt’s important for Japan and China’s governments to keep up dialogue.Concerned about the impact of China spat on businesses.Hopeful business delegation can visit China in January.2% yield on 10-year JGBs is a key milestone.Market reactionThe impact of Japan Tsutsui’s comments on the Japanese Yen (JPY) appears to be insignificant. As of writing, the USD/JPY pair trades flat around 155.20. Japanese Yen Price Today The table below shows the percentage change of Japanese Yen (JPY) against…

The rupee depreciated 16 paise to 90.11 against the US dollar in early trade on Monday, weighed down by elevated crude oil prices and persistent foreign fund outflows. Forex traders said strong dollar demand from corporates, importers and foreign portfolio investors pressurised the rupee. At the interbank foreign exchange, the rupee opened at 90.07 against the US dollar then dropped to 90.11, down 16 paise from its previous close.On Friday, the rupee settled at 89.95 against the US dollar, after the Reserve Bank of India cut the key policy interest rate for the first time in six months. Forex traders…

RBI delivers the secret instructions to dedicated rupee traders in soundproof rooms.Some days the orders focus on size: sell $100 million every minute. Other times, it’s about market levels: sell everything until the target is hit. And on certain days, the instruction is simply to step aside.The hard-to-predict intervention strategy is part of the Reserve Bank of India’s increasingly high-stakes attempt to manage the rupee as it weakens to all-time lows.Interviews with bankers, traders and former central bank officials — some of whom described on condition of anonymity how the RBI’s closely guarded interventions work — suggest volatility is likely…

The USD/CAD pair trades weakly near its 11-week low around 1.3800 during the Asian trading session on Monday. The Loonie pair fell drastically on Friday after the release of the Canadian labor market report for November, which showed that the Unemployment Rate dropped significantly to 6.5% from 6.9% in October due to a significant increase in part-time workers.Full-time jobs created by the Canadian economy in November were 53.6K, slightly lower than 66.6K in October, while economists anticipated that employers would have shed 5K jobs.Strong Canadian employment data has diminished hopes of an interest rate cut by the Bank of Canada…

The USD/JPY pair loses ground to near 155.25 during the early Asian session on Monday. The US Dollar (USD) weakens against the Japanese Yen (JPY) as traders brace for the Federal Reserve (Fed) meeting this week, where policymakers are widely expected to cut interest rates. The final reading of Japan’s Gross Domestic Product (GDP) report for the third quarter will be released later on Monday. Traders increased their expectation that the US central bank will deliver a 25 basis points (bps) rate reduction at its December meeting. According to the CME FedWatch tool, financial markets are currently pricing in nearly a 90% chance…