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The rupee is set to open modestly stronger on Friday, soothed by a retreat in oil prices and expectations of foreign portfolio inflows linked to a large initial public offering, though the currency remains on track for a weekly decline.The rupee is expected to open in a 95.75-95.80 per dollar range, traders said, having settled at 95.93 on Thursday.Oil prices eased on Friday, extending losses into a third session, as hopes of alternate ways for barrels from the Middle East to reach markets outweighed concerns about strikes between Saudi Arabia and Yemen’s Houthis. Brent oil was last down 0.7 per…
The yen got off to a weak start against the dollar and the euro at the start of Asian trading on Friday, with currency markets in a subdued mood ahead of an expected rate hike from the Bank of Japan later in the trading session.The yen fell 0.1% to 156.19 yen per dollar, resuming its decline after snapping a three-day losing streak on Thursday as traders prepare for the Japanese central bank to lift interest rates to the highest level in more than three decades. Against the euro, the yen was 0.2% weaker at 179.3000 yen.The yen’s softness followed data…
Iran’s Islamic Revolutionary Guard Corps (IRGC) said on Thursday that a Togo-flagged oil tanker was struck while attempting to make an “illegal passage” through the Strait of Hormuz, Arab news reported. The IRGC added the tanker came to a halt after catching fire. The Iranian military also stated that it still controls the critical waterway and will not allow the passage of any aggressor. US President Donald Trump said on Thursday that he was approaching a major decision on whether to resume large-scale attacks on Iran, as Washington weighs how to bring the months-long war to an end, according to Axios.The United…
The Dow Jones Industrial Average trades above 51,800, back over the 51,500 area it sold through on Wednesday, when the Federal Reserve raised its rate for the first time in three years and the index fell to its lowest level in three months. Crude Oil is cheaper, the 10-year Treasury yield is back under 5%, and the index has recovered about half of Wednesday’s fall. The buying is concentrated in the stocks this index owns the least of.The Dow pays by the share price, not by the companyThis index weights its 30 members by what a share costs rather than…
Danske Research Team expects the Bank of Japan to raise its policy rate to 1.25%, a move they say is largely priced in as market expectations tightened in recent weeks. They anticipate BoJ will signal a more nimble tightening pace than its cautious cycle so far, warning that any deviation could weigh heavily on the Japanese Yen as core CPI pressures pick up.Nimbler tightening path expected”In Japan, the Bank of Japan will decide overnight on its policy rate.””We expect the Bank of Japan to hike its policy rate to 1.25%. The move has largely been priced in by investors as…
The rupee ended flat on Thursday, bucking declines in most regional peers, as likely central bank intervention and inflows related to an equity index rebalancing helped cushion the impact from a US interest rate hike.The rupee closed at 95.93 against the dollar, barely changed from Wednesday’s close at 95.9550.While the rupee had slipped past the 96-per-dollar mark in early trading, it recouped losses following market intervention and inflows likely linked to the rebalancing of a global equity index.“Price action signals that the central bank is not comfortable with the rupee falling past 96, so that could remain a key support…
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/CHF has staged an overdone rally toward 0.8265 and now expect the pair to consolidate between 0.8225 and 0.8275 in the near term. Over the next 1–3 weeks, momentum remains strong but may not yet be sufficient to break above 0.8300, with 0.8185 flagged as key downside support.Pair seen consolidating below 0.8300″24-HOUR VIEW: Yesterday, we held the view that USD “could rise above the major resistance at 0.8205.” However, we highlighted that “based on the current momentum, it may not be able to maintain a foothold…
The AUD/JPY cross trades in positive territory around 110.90 during the early European session on Thursday. Elevated energy prices due to the ongoing conflict in the Middle East weigh on the Japanese Yen (JPY) against the Australian Dollar (AUD) as Japan is an oil-dependent economy. All eyes will be on the Bank of Japan (BoJ) monetary policy meeting on Friday. The BoJ is likely to raise the interest rate to 1.25% from 1.0% at the September policy meeting on Friday. Traders await the speech from BoJ Governor Kazuo Ueda, which could offer some htins about the timing and pace of further…
US President Donald Trump is expected to meet Gulf leaders on the sidelines of the UN General Assembly in New York next Tuesday to discuss the next steps in the Iran war, Reuters reported on Wednesday.The discussion is likely to focus on US ideas for a postwar strategy as Trump and his administration work on a day-after plan expected to be finalized after the midterms.Market reactionAt the time of writing, the West Texas Intermediate (WTI) is down 0.67% on the day at $96.80. WTI Oil FAQs WTI Oil is a type of Crude Oil sold on international markets. The WTI…
NZD/USD trades around 0.5755 at the time of writing on Wednesday, virtually unchanged on the day after rebounding from an over two-month low at 0.5737. However, the pair lacks a clear direction as investors refrain from taking large positions ahead of the Federal Reserve (Fed) monetary policy decision due later on Wednesday.The US Dollar (USD) also pauses after recently revisiting a two-week high. Some profit-taking on the Greenback allows NZD/USD to remain above its session low, although caution prevails ahead of the US central bank announcement.Markets widely expect the Fed to raise its benchmark interest rate by 25 basis points,…