Author: admin

The rupee depreciated 32 paise to an all-time low of 89.85 against the US dollar in early trade on Tuesday, weighed down by the broad strength of the American currency in overseas markets and persistent foreign fund outflows. Forex traders said strong dollar demand from corporates, importers and foreign portfolio investors pressurised the rupee. Moreover, elevated crude oil prices further dented investor sentiments. At the interbank foreign exchange, the rupee opened at 89.70 against the US dollar before dropping to record low level of 89.85 , down 32 paise from its previous close. On Monday, the rupee after sinking to…

The USD/CAD pair clings to Monday’s recovery move to near 1.4010 during the Asian trading session on Tuesday. The Loonie pair bounced back on Monday as the US Dollar (USD) rebounded despite weak United States (US) ISM Manufacturing Purchasing Managers’ Index (PMI) data for November strengthened the case for another interest rate cut by the Federal Reserve (Fed) this year.At the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades calmly near 99.40. The USD Index recovered on Monday after revisiting the monthly low around 99.00.The ISM showed that the Manufacturing PMI…

GBP/USD soured on Monday, starting off the December trading window declining around one-quarter of one percent, pushing back down from a key technical confluence region that will likely inspire further short selling behind the Pound Sterling (GBP) unless global flows into the US Dollar (USD) reverse course.Pound struggles under the weight of political troublesChancellor of the Exchequer Rachel Reeves has come under fresh fire regarding the state of the UK’s government budget. Chancellor Reeves stands accused of grossly misreprenting the true state of the UK’s finances. Chancellor Reeves has continued to advocate for “unavoidable increases” in budgetary taxes, despite the…

The GBP/USD post modest gains rise over 0.20% on Monday as investors grow confidence that the Federal Reserve might cut rates in the next week meeting, and traders prized in a possible nomination of the White House Economic Adviser Kevin Hassett to succeed Powell at the Fed. The pair trades at 1.3250, after hitting a daily low of 1.3205.Sterling advances in thin trading as weak US manufacturing data lifts rate-cut expectationsData from the US showed that business activity contracted for the ninth straight month in November, revealed the Institute for Supply Management (ISM). The ISM Manufacturing PMI dipped from 48.7…

Analysts said the market is positioning for a stronger dollar as the RBI remains heavily short in forwards and is adopting a “soft-touch” intervention strategy. The rupee hit a record low on Monday, weighted down by factors such as the RBI’s maturing positions in the non-deliverable forward (NDF) market, FIIs continuing to sell in the domestic equity markets and the trade deal with the US taking a long time to seal.Opening a tad stronger at 89.44 per US Dollar (USD), the Indian currency (INR) closed at an all-time low of 89.5475 per USD, down nine paise, against the previous close…

The US Dollar (USD) enters December under pressure, with markets heavily pricing in a Fed rate cut next week amid a softer labor market and the scheduled end of quantitative tightening, DBS’ Senior FX Strategist Philip Wee notes.USD eyes year-end weakness ahead of FOMC”The USD is entering the final month of 2025 with heavy expectations that the Fed will cut interest rates at next week’s FOMC meeting on December 10.” “US Labor Secretary Lori Chavez-DeRemer, Fed Presidents John Williams (New York) and Mary Daly (San Francisco) judged that the risks from a softening labor market outweighed the rationale for holding rates…

The Indian Rupee extended its decline in November 2025, falling by 0.8% during the month to close at a record low of 89.46 against the U.S. dollar. The depreciation continued into early December, with the rupee slipping further to 89.73/$—surpassing its previous record low of 89.49/$ registered just two weeks earlier.The move came despite robust domestic economic data, most notably a higher-than-expected GDP growth of 8.2% in the September quarter, well above the 7.3% consensus estimate in a Reuters poll.This contrast between strong economic performance and weak currency trajectory has drawn attention from market analysts.Aditi Gupta, Economist at Bank of…

The USD/JPY forecast edges lower as the BoJ’s Ueda left hawkish remarks. The BoJ hinted at rate hikes to prevent a resurgence in inflationary pressure. With Fed easing, the central bank divergence continues to favor the USD/JPY bears in the near term. The USD/JPY forecast remains slightly lower on Monday as the pair slipped to mid-155.00 following hawkish signals from BoJ’s Ueda. His comments have strengthened the expectations that the central bank could raise interest rates in December or January, narrowing the yield spread that drove the yen weakness throughout the year. –Are you interested to learn more about day…

The Indian Rupee (INR) posts a fresh low against the US Dollar (USD) after a flat opening at the start of the week. The USD/INR pair jumps to near 90.00 as the Indian Rupee struggles to attract bids, with consistent foreign outflows offsetting the impact of robust India’s Q3 Gross Domestic Product (GDP) growth.Foreign Institutional Investors (FIIs) have turned out to be net sellers in the last five months starting July, dumping stakes in the Indian stock market worth Rs. 1,49,718.16 crore.Currencies from developing economies are significantly impacted by diminishing confidence of overseas investors in their economy.On Friday, India’s Ministry…

The Japanese Yen (JPY) jumps to a one-and-a-half-week top against a broadly weaker US Dollar (USD) during the Asian session on Monday. The latest comments from Bank of Japan (BoJ) Governor Kazuo Ueda reaffirmed bets for an imminent interest rate hike, pushing Japanese government bond (JGB) yields to their highest levels in years. The resultant narrowing of the rate differential between Japan and other major economies provides a goodish lift to the JPY at the start of a new week.Apart from this, a softer tone around the equity markets is seen as another factor that benefits the JPY’s safe-haven status.…