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Gold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data. The US delayed the Personal Consumption Expenditures (PCE) Price Index report for September, which will be published later on Friday. Higher yields and stronger US jobs data could provide some support to the US Dollar (USD) broadly and weigh on the USD-denominated commodity price. Data released by the US Department of Labour (DOL)…

The Australian Dollar extends gains against the US Dollar on Thursday as markets scale back expectations of additional rate cuts by the Reserve Bank of Australia (RBA). At the time of writing, AUD/USD is trading around 0.6622, its strongest level since October 7.The shift in sentiment comes ahead of the RBA’s interest rate decision on December 9, with investors increasingly convinced that the central bank will maintain its wait-and-see stance. The RBA kept the cash rate unchanged at 3.60% in November and recent domestic indicators have done little to justify further easing.In fact, Speculation is building that the Reserve Bank…

Gold (XAU/USD) holds steady on Thursday, moving quietly within the $4,160-$4,260 range as investors adopt a wait-and-see approach ahead of the Federal Reserve’s (Fed) monetary policy meeting next week.At the time of writing, XAU/USD is trading around $4,200, with the cautious market backdrop keeping the metal in a consolidative phase after it climbed to a six-week high earlier this week.Markets largely expect the Fed to lower interest rates at the December 9-10 meeting. That conviction firmed after Tuesday’s US economic data showed a surprise decline in ADP Employment Change, underscoring weakening labour conditions.The ISM Services PMI also offered a mixed…

The rupee recovered on Thursday, closing at 89.96 per US dollar, up 19 paise, after briefly plunging to a new all-time low of 90.43 amid FII outflows, high crude prices and uncertainty over the India-US trade deal. The rupee rebounded from its all-time low levels and appreciated by 19 paise to close at 89.96 against the US dollar on Thursday, on softness in the US dollar index and on reports of the Reserve Bank of India’s supposed intervention. Forex traders said the greenback fell after ADP non-farm payroll data came in sharply below forecast, and the softness in the US…

USD/JPY outlook remains weak as the dollar tumbles after weaker ADP data. The increasing odds of BoJ rate hikes provide moderate support to the yen. Rising JGB yields and FX intervention warnings weigh on the USD/JPY. The USD/JPY price is attempting to stabilize on Thursday after a sharp fall in the previous session. The pair is trading near 154.90 at the time of writing. Japanese yen found moderate support from the Bank of Japan’s rate hike. The Dollar Index (DXY) briefly broke below the 99.00 level on Wednesday after disappointing U.S. data intensified bets on a Fed rate cut. Earlier…

The Indian Rupee (INR) slumps for the seventh trading day in a row against the US Dollar (USD) on Thursday. The USD/INR pair posts a fresh all-time high around 90.70 at open as the Indian Rupee continues to face backlash due to the consistent outflow of foreign funds from the Indian equity market.Foreign Institutional Investors (FIIs) have not stopped paring their stake in the Indian stock market despite remaining net sellers in the July-November period. In the first trading days of December, FIIs have sold shares worth Rs. 8,020.53 crore cumulatively.The major reason behind weak sentiment towards the Indian stock…

The rupee hit a fresh record low in early trading Thursday, extending its break below the closely watched 90-per-dollar level, as uncertainty over a crucial US trade deal continued to erode sentiment. India’s rupee is undervalued at current levels after sliding to record lows, and this could draw foreign investors back to the nation’s equities, according to Elara Capital and Yes Securities Ltd.Elara analysts led by Garima Kapoor said the nation’s 40-currency real effective exchange rate, or REER, was 97.47 in October — just under one standard deviation below its historical average — and added that equity inflows typically pick…

Mumbai – Uncertainty over the timing of the US.–India trade deal is fuelling rupee volatility and the absence of a quick agreement could push the currency to as low as 92 per dollar, the head of treasury at HDFC Bank said.The rupee fell to an all-time low of 90.42 on Thursday, extending an eight-month-long slide that has made it Asia’s worst-performing currency. Multiple headwinds, from a wider trade gap to weak investment flows, have sapped dollar inflows into the world’s fifth-largest economy.”The current account deficit is increasing, there are outflows from local equities so in the genuine supply side (of…

Mumbai India’s central bank will tolerate a weaker rupee as the country’s external sector confronts multiple headwinds including a wider trade gap and stalling of dollar inflows into the world’s fifth-largest economy, three sources familiar with the central bank’s thinking told Reuters.The Reserve Bank of India (RBI), which had supported the rupee through aggressive interventions via dollar sales until last month, has allowed the rupee to fall 1.3% in the last seven trading sessions to a record low of 90.42.The rupee, down 5.5% on year, is Asia’s worst performing currency.By signaling tolerance for a weaker rupee, the central bank is…

The rupee opened weaker at 90.3650 per USD against previous close of 90.19. The rupee on Thursday opened weaker, above 90 to the dollar level for the first time, and hit an intraday low of 90.43 in trading so far.Factors such as continued FPI outflows from the equity markets, importer demand, lack of visibility on a trade deal with the US, widening trade deficit, and restrained RBI intervention continue to affect the Indian currency.The rupee opened weaker at 90.3650 per USD against previous close of 90.19. Its last trade price was 90.3050 and the intraday high so far was 90.2525,…