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Chief Economic Advisor (CEA) V. Anantha Nageswaran (file photo) | Photo Credit: SUSHIL KUMAR VERMA Chief Economics Adviser V Anantha Nageswaran on Wednesday said the government is not losing sleep over declining rupee, which has breached the 90-level against the greenback. The falling rupee is not affecting inflation or exports, he said on the sidelines of CII event here. However, he expressed hope that it should improve next year. The rupee has depreciated about 5 per cent against the US dollar in 2025. The rupee plummeted to a new low of 90.30 against the greenback in the intra-day session on…
Gold (XAU/USD) hangs near the lower end of the daily range during the first half of the European session on Wednesday, though it manages to hold above the $4,200 mark amid mixed cues. A generally positive tone around the equity markets is seen as a key factor acting as a headwind for the safe-haven precious metal. Furthermore, bulls opt to wait for important US macro releases for more cues about the Federal Reserve’s (Fed) rate-cut path and placing fresh bets around the non-yielding yellow metal.In the meantime, firming expectations that the US central bank will lower borrowing costs at its…
The Indian rupee on Wednesday slipped past the 90 per dollar mark, a level that once felt distant but now reflects a long, uneven slide that has stretched across four decades. Wednesday’s breach came after months of pressure from weak capital flows, persistent importer demand and fresh hedging by companies worried that a softer currency could hurt their costs.The rupee opened near 89.90 and briefly touched 90 in the interbank system, extending an eight-month downturn that has made it one of Asia’s weakest currencies this year.A four-decade slide that saw everythingThe latest drop caps a journey that began in 1983,…
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.1% lower to near 99.20 during the Asian trading session on Wednesday. The US Dollar (USD) is under pressure amid growing expectations that White House Economic Adviser Kevin Hassett could be hired as the successor of Federal Reserve (Fed) Chairman Jerome Powell, when his term ends in May.The odds of White House adviser Hassett being chosen as the Fed’s next Chairman increased on Tuesday after United States (US) President Donald Trump mentioned his name while addressing reporters. “I guess a potential Fed chair is here…
GBP/USD cycled around the 1.3200 level on Tuesday as Cable traders keep their heads down during the long wait for further signs of interest rate cuts from both the Federal Reserve (Fed) and the Bank of England (BoE) heading into the final weeks of 2025.Markets are expecting a tilt toward further interest rate cuts from both the Fed and the BoE in December. The Fed’s next rate call is slated for December 10, with the BoE trailing along on December 18.Fed and BoE expected to deliver further rate cutsThe Fed is now in its statement blackout period ahead of its…
Gold (XAU/USD) edges lower on Tuesday as traders lock in some profits following Monday’s surge to six-week highs. At the time of writing, XAU/USD is trading near $4,190, down over 1% on the day.A modest uptick in the US Dollar (USD) and firmer Treasury yields are also weighing on the precious metal. At the same time, a cautious risk backdrop, with major global stock indices stabilizing after Monday’s sell-off, is tempering safe-haven demand and contributing to the pullback.Despite the mild retreat, downside remains limited as Gold stays broadly supported by expectations that the Federal Reserve (Fed) will lower interest rates…
In the calendar year so far, the rupee has depreciated about 5 per cent (or about 425 paise) against the US dollar The rupee on Tuesday came within a whisker of the psychologically crucial 90-to-a-dollar mark, testing an all-time intraday low of 89.95 and closing at a record low of 89.87.The Indian currency (INR) is being buffeted by FPI selling in the equity market, importer demand, short-covering by speculators, delays in clinching the tariff deal with the US, the possibility of a repo rate cut, and reduced RBI intervention, among others.In the calendar year so far, the rupee has depreciated…
Immediate support lies at 89.65, with recovery possible only if the RBI intervenes near the 90 level. | Photo Credit: Reuters The Indian rupee declined to a new low of 89.95 against the dollar on Tuesday. Last week in this column, we said the rupee could consolidate between 89 and 89.60 for some time, then decline towards 90. But this fall has happened without seeing the consolidation. This indicates the RBI is continuing to stay out of the market without any intervention.The domestic currency has weakened over the past week despite the greenback’s weakness. The dollar index (99.45) has fallen…
EUR/USD remains range-bound near 1.1610, with support at 1.1500 and resistance at the 100-day moving average of 1.1644. Eurozone November CPI data reinforces the ECB’s on-hold stance, with headline inflation at 2.2% y/y and core CPI steady at 2.4% y/y, BBH FX analysts report. Eurozone inflation shows slight rise, ECB bias unchanged”EUR/USD is trading in a tight range around 1.1610. EUR/USD appears to have carved out a bottom at 1.1500, with next key resistance at 1.1644, the 100-day moving average.””The Eurozone preliminary November CPI supports the ECB’s on hold bias. Inflation is running slightly above the ECB’s 2% medium-term target.…
European Central Bank (ECB) policymaker Martin Kocher stated during the European trading session on Tuesday that the central bank should “keep powder dry and be able to react if needed”.Market reactionThe impact of the ECB Kocher’s comments appears to be insignificant on the EUR/USD pair. The major currency pair trades marginally higher around 1.1610 during European trading hours. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation…