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So far in 2025, the forex kitty has cumulatively increased by about $48 billion, data showed. | Photo Credit: ANINDITO MUKHERJEE India’s foreign exchange reserves declined by $1.877 billion in the week that ended November 28 to $686.227 billion, according to the latest weekly data released by the Reserve Bank of India (RBI).In the last reporting week (November 21), forex reserves declined by $4.472 billion to $688.104 billion, driven by a slump in both foreign currency assets and gold reserves.Over the past many weeks, the forex kitty has been largely in a downtrend.RBI’s ‘Weekly Statistical Supplement’ data showed that India’s…

On Friday, the EUR/USD remained steady, poised to finish the week with gains of 0.39%, trade subsided capped by the 1.1650 figure as traders eyed the Federal Reserve’s decision next week.Euro holds gains; US inflation and sentiment data shape market outlookEconomic data boosted the US Dollar, which trimmed some of its previous losses against the Euro. Inflation data in the US was mostly aligned with estimates, while Consumer Sentiment revealed by the University of Michigan (UoM) showed signs of improvement.In the Eurozone, growth figures for the bloc showed the economy’s resilience with monthly data exceeding forecast. European Central Bank (ECB)…

The Canadian Dollar (CAD) found room on the high side on Friday, climbing nearly 0.9% and locking in a second straight week of firm gains for the Loonie. The CAD has gained nearly 2.2% bottom-to-top against the US Dollar (USD) since hitting seven-month lows in early November.Canadian labor data came in broadly stronger than expected in November, with the Canadian economy adding far more jobs than expected. The Canadian Unemployment Rate tumbled to its lowest level since August 2024. US Personal Consumption Expenditures Price Index (PCE) inflation data from September also came in slightly better than expected, helping to keep broad-market…

The Dow Jones Industrial Average (DJIA) made slim gains on Friday, climbing another 150 points and ending a moderately bullish week near the 48,000 handle. US Personal Consumption Expenditures Price Index (PCE) data, despite being from September, helped bolster market confidence that the Federal Reserve (Fed) will be delivering a third straight interest rate cut on December 10.The Standard & Poor’s 500 (SP500) also climbed around 0.3% on Friday, putting the broad-market index on pace to challenge all-time highs.PCE inflation cools slightly, bolsters Fed rate cut hopesCore PCE inflation ticked down to 2.8% YoY in September, while the monthly figure…

Gold (XAU/USD) advances during the North American session on Friday, poised to finish the week almost flat above the $4,200 figure as market participants brace for the Federal Reserve (Fed) monetary policy meeting next week. At the time of writing, XAU/USD trades at $4,216 after bouncing off daily highs of $4,259.XAU/USD trades flat; markets eye Federal Reserve’s expected rate cutThe week ends with the release of the Fed’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index for September, which remained virtually unchanged, slightly closer to the 3% threshold than the Fed’s 2% goal. Although the print would…

The Australian Dollar (AUD) extends its advance against the US Dollar (USD) on Friday, with AUD/USD climbing to its highest level since September 18 as traders are almost certain the Reserve Bank of Australia (RBA) will leave interest rates unchanged on December 9.At the time of writing, AUD/USD is trading around 0.6637, on track for a second straight weekly gain.The fundamental backdrop remains supportive for the Aussie, with markets also beginning to factor in the possibility that the RBA could revisit tightening next year if domestic conditions stay firm.This stands in sharp contrast to the Federal Reserve’s (Fed) dovish outlook,…

Gold (XAU/USD) erases earlier gains on Friday as a firmer US Dollar (USD) tempers bullish momentum, with the metal oscillating within the familiar range that has defined price action this week. At the time of writing, XAU/USD is trading near $4,215, with dovish Federal Reserve (Fed) expectations continuing to offer a supportive backdrop, helping limit downside despite the intraday pullback.The US Dollar bounced off earlier lows after the delayed US Personal Consumption Expenditures (PCE) report for September offered no surprises. Core PCE, the Fed’s preferred gauge, rose 0.2% MoM, matching expectations, while the annual rate eased to 2.8% from 2.9%.Headline…

Dual central bank interest rate decisions from the U.S. Federal Reserve and the Bank of Canada on Wednesday top the week’s calendar, with the BoC expected to hold rates, while a third consecutive 25 basis point cut from the Fed looks highly likely, RBC’s economists Nathan Janzen and Claire Fan report. Trade data key for Canada ahead of rate decision”Our base case forecast a month ago did not assume a December cut from the Fed, given inflation in the U.S. remains above the central bank’s 2% target, and Chair Jerome Powell’s comments at the last meeting about cautiously proceeding in…

The Euro (EUR) trims earlier gains against the US Dollar (USD) on Friday as the Greenback firms following the latest set of US economic releases. At the time of writing, EUR/USD is trading around 1.1635, easing from the daily high of 1.1628, though the pair remains on track for a second straight weekly gain as markets grow increasingly confident that the Federal Reserve (Fed) will cut interest rates next week.The delayed US Personal Consumption Expenditures (PCE) report for September kept the overall inflation picture steady. Core PCE, the Fed’s preferred gauge, rose 0.2% MoM, matching expectations, while the annual rate…

The US Dollar’s (USD) sharp H1 2025 drop could push investors toward broader portfolios, though geopolitics and Fed risks may keep the currency unsettled. Analysts now expect EUR/USD to swing widely in 2026, trimming the 12-month target to 1.18 while keeping a modestly bullish bias, Rabobank’s FX analyst Jane Foley reports. Geopolitics to drive EUR/USD volatility”The sharpness of the USD’s plunge in H1 2025 could itself encourage investors to favour a more diversified portfolio going forward into 2026. That said, issues related to trade tensions, geopolitics, Fed independence and US growth and inflation risks can all be expected to impact…