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Kolkata: The rupee closed 30 paise down Wednesday at 93.79/80 a dollar amid rising crude prices and uncertainties over a West Asia peace agreement. This is the third straight daily fall which dealers attributed also to month-end dollar demand and short covering by importers. US President Donald Trump’s threat to bomb Iran also led the global crude price rise above $98 a barrel. The local currency opened lower at 93.69/70 a dollar against the previous close of 93.50, dealers said. Dollar demand from defence companies kept the rupee under pressure initially, people aware said.Agencies “All oil imports are being routed…
The White House said that US President Donald Trump has not set a deadline on Iran submitting a peace proposal, the Guardian reported on Wednesday. On Tuesday, Trump extended the ceasefire and vowed to continue the US blockade on Iranian ports.The speaker of the Iranian parliament and top negotiator, Mohammad Bagher Ghalibaf, stated that reopening the strait of Hormuz would be “impossible” while the US and Israel committed “flagrant” breaches of the ceasefire, including the US naval blockade.Market reactionAt the time of writing, the West Texas Intermediate (WTI) is down 1.83% on the day at $91.35. WTI Oil FAQs WTI…
AUD/USD trades in positive territory on Wednesday, around 0.7160 at the time of writing, up 0.12% on the day. The Australian Dollar (AUD) benefits from a modest improvement in market sentiment after US President Donald Trump announced the extension of the ceasefire with Iran, supporting risk-sensitive assets.The US president stated that Washington is extending the military truce while awaiting a “unified proposal” from Tehran to resume negotiations. Despite the extension, tensions in the region remain elevated as the United States (US) continues to enforce a maritime blockade on Iranian vessels transiting the Strait of Hormuz, a strategic route for global…
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann observe that USD/JPY climbed to 159.37 as the Dollar strengthened. They see scope for a retest of 159.65, with limited follow-through above that level, and expect a broader 157.55–160.50 range. Longer term, a move above 159.45 is possible but unlikely to challenge 162.00.Dollar-Yen holds near upper band”24-HOUR VIEW: Subsequent to Monday’s price action, we highlighted yesterday that “momentum indicators are mostly flat,” and we expected USD to “trade between 158.50 and 159.20.” Our view was incorrect, as after dipping to 158.66, USD rose and reached a high of 159.64…
The Indian rupee fell for the third consecutive session on Wednesday, as optimism about an end to the Iran war remained muted despite the U.S. indefinitely extending a ceasefire.With reports of gunfire attacks on container ships in the Strait of Hormuz, Brent crude oil prices rose above $100 a barrel and pegged back regional stocks, including a 0.9% drop in India’s benchmark Nifty 50 index.The rupee closed at 93.7950, down 0.3% from the previous close and hovering near its weakest level in three weeks.The rupee managed to avoid steeper losses on the day on account of likely intervention by the…
The rupee weakened for the third straight session, losing 39 paise to settle at 93.83 (provisional) against the US dollar on Wednesday as uncertainty on US-Iran peace talks eroded hopes of easing West Asia conflict and set crude oil prices on fire.Intense selling in domestic equity markets and sustained outflow of foreign capital also weighed on the Indian currency, forex traders said.At the interbank foreign exchange market, the rupee opened at 93.69 and touched an intraday low of 93.87 against the greenback during the session, nearing the 94 level it reached for the first time on March 23.The domestic unit…
RBI’s foreign exchange curbs prompted overseas investors to take profits in the South Asian country’s government bond market, sparking a selling cycle that sent borrowing costs to a two-year high, a top fixed-income official at the Nuvama Group said on Tuesday.India tightened rules for forex trading between late March and early April to support a rupee that fell to record lows as the Iran war pushed up oil prices, worsening the growth and inflation outlook for the net oil-importing country.The FX measures, now partially reversed, helped the rupee but led to a surge in the cost of hedging rupee exposure…
AUD/JPY inches higher after remaining flat in the previous session, trading around 114.10 during the Asian hours on Wednesday. The currency cross maintains its gains as the Australian Dollar (AUD) finds support from improving market sentiment after a Bloomberg headline, citing Tasnim News Agency linked with the IRGC, reported that Iran has received “some sign” the United States (US) may be willing to ease its naval blockade.Moreover, US President Donald Trump extended the ceasefire until tangible progress is achieved in negotiations between both sides, according to Bloomberg. The US blockade on Iranian vessels was in place after the second round…
The United Kingdom (UK) Office for National Statistics (ONS) will publish the high-impact Consumer Price Index (CPI) data for March at 06:00 GMT. The report could significantly alter market expectations about a Bank of England (BoE) interest rate hike later this year, ramping up volatility around the Pound Sterling (GBP), as traders brace for the impact of the energy shock from the Middle East war. What to expect from the next UK inflation report?The UK Consumer Price Index is expected to rise 3.3% year-over-year (YoY) in March, following a 3% increase in February. The reading is likely to come in above the…
TOKYO: The dollar steadied in early Asian trade on Wednesday, as skepticism over U.S. President Donald Trump’s announcement of an indefinite extension of a ceasefire with Iran lifted demand for the safe-haven currency, pushing it to a one-week high. On the policy front, Federal Reserve nominee Kevin Warsh’s comments at a Senate confirmation hearing were interpreted as slightly hawkish, while strong retail sales data provided an upbeat view on the strength of the American economy. The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, was steady at 98.415, its highest level since April 13.…