Author: admin
The rupee appreciated by 29 paise to settle at 92.85 (provisional) against the US dollar on Friday, buoyed by a weakening American currency and retreating crude oil prices amid increasing hopes of easing geopolitical tensions.Renewed buying in domestic equity markets and fresh inflow of foreign funds also supported the local currency, forex traders said.At the interbank foreign exchange market, the rupee opened at 92.93 and touched an intraday high of 92.65 against the greenback. The unit also touched the day’s low of 92.98 before ending the session at 92.85 (provisional) against the American currency, up 29 paise from the previous…
Commerzbank economists Jörg Krämer and Bernd Weidensteiner argue that despite a sharper fall in global oil production than during the 1970s crises, advanced economies should suffer less this time. They highlight smaller price increases, lower oil intensity, and strategic reserves as key buffers, but warn that supply chain disruptions and prolonged damage to Gulf energy infrastructure could still significantly hurt growth.Historic supply hit but softer macro blow”In fact, oil production has fallen more sharply due to the blockade of the Strait of Hormuz and attacks on oil production and loading facilities in the Persian Gulf region than during any other…
The Indian rupee led gains in Asia after a report that the central bank has asked state-owned oil refiners to route their dollar purchases through a special credit facility.The currency gained as much as 0.5 per cent to 92.7738 per dollar on Friday.Refiners have been asked to tap a special credit line for their foreign exchange requirements through the State Bank of India, the country’s largest lender, Reuters reported, citing people it didn’t identify. They are also being encouraged to route dollar purchases via SBI instead of multiple banks, the report said, citing one of the people.“The news of the…
The rupee jumped 28 paise to 92.86 against the US dollar in early trade on Friday amid hopes of easing geopolitical tensions and positive sentiment in domestic equity markets.Buying of Indian equities by foreign investors also supported the local currency even though it stayed under pressure due to a firm dollar, forex traders said.At the interbank foreign exchange market, the rupee opened at 92.93 and gained further to trade at 92.86 against the greenback in early deals, up 28 paise from the previous closing level.On Thursday, the rupee strengthened 19 paise to settle at 93.14 against the US dollar.Meanwhile, the…
The EUR/USD pair trades subduedly near 1.1777 during the Asian trading session on Friday. The major currency pair has turned sideways after a two-week-long rally to near 1.1825 as investors await the announcement of another round of talks between the United States (US) and Iran.S&P 500 futures are flat in the Asian trade after rising 0.26% to 7,041 on Thursday, reflecting a quiet but broadly upbeat market mood. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally higher around 98.25, but looks set for a second weekly loss.While neither the US nor Iran…
Finance ministers from the Group of Seven (G7) on Friday emphasized the urgent need to limit the economic repercussions of an ongoing Middle East conflict, highlighting a commitment to pursuing enduring peace.Key quotesG7 finance ministers concluded unanimously it was urgent to limit cost for global economy of an enduring Middle East conflict statement.G7 members are particularly vigilant regarding the direct and indirect effects on the most vulnerable states: statement.G7 finance ministers and governors reaffirm their support for Ukraine. G7 finance ministers discussed the imperative to maintain pressure on Russia so that the Middle East crisis does not benefit its war effort. G7…
The GBP/USD dropped by 0.17% on Thursday as US jobs data outshone UK Gross Domestic Product (GDP) data revealed during the European session. expectations for a peace deal between the US and Iran, keep the market mood upbeat. The pair trades at 1.3534 after reaching a high shy of the 1.36 handle.Sterling eases despite solid UK GDP and fresh ceasefire hopesInitial Jobless Claims in the US dipped from 219K to 207K in the week ending April 11, below forecasts for a 215K print. Although the print is good, the latest employment report and JOLTS data hint that the economy is…
Danske Bank analysts discuss US political risk around Federal Reserve (Fed) leadership, noting Kevin Warsh’s Senate hearing is scheduled for 21 April as part of his confirmation process as Fed chair. They highlight Senator Tillis’ opposition linked to an investigation into Powell, Polymarket’s roughly 60% confirmation probability, and the contingency that Miran could become acting chair if Warsh is not confirmed before May.Warsh hearing and succession scenarios”In the US, Kevin Warsh’s hearing in the Senate has been set for 21 April.””While the hearing is an important step in the process to be confirmed as Fed chair, the sticking point remains…
Pakistan’s foreign ministry stated during the European trading session on Thursday that dates for another round of talks between the United States (US) and Iran regarding the permanent ceasefire have not been finalized yet. However, it confirmed that channels for negotiations between both nations are open.Additional remarksWe are keeping channels open between Washington and Tehran.No dates decided for next round of talks between US, Iran.Have no information on the venue of the second round of US-Iran talks.FX ImplicationsNo immediate reaction by the US Dollar (USD) after comments from Pakistan’s foreign ministry. However, the US Dollar Index (DXY) has recovered its…
Optimism about peace talks between the U.S. and Iran is complementing recent central bank measures to shore up the Indian rupee, with a fall in hedging costs and volatility expectations signalling reduced anxiety over its trajectory. U.S. and Iranian officials are weighing a return to Pakistan for further talks as early as the coming weekend while the central bank’s measures have diminished pressure on the currency by taking chunky arbitrage positions out of the equation. Reflecting the impact, 1-month dollar-rupee NDF points – which bake in the cost of hedging against rupee weakness – have eased to about 37 paisa,…