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The Japanese Yen (JPY) remains offered against the US Dollar (USD) on Friday, and the USD/JPY pair stands comfortably around 161.30, its highest level since 2024, way beyond the level that triggered an alleged intervention on April 30.Markets have remained oblivious to the Bank of Japan’s (BoJ) decision to hike rates to 31-year highs earlier this week. Speculative traders have kept selling the Japanese currency, lured by rising bets that the US Federal Reserve will be forced to hike interest rates in the second half of the year.On Thursday, Japan’s Chief Cabinet Secretary, Minoru Kihara, reiterated that the authorities are…
On Tuesday, the rupee settled 10 paise higher at 94.40 against the US dollar. The rupee appreciated 20 paise to 94.20 against the US dollar in early trade on Friday on optimism that trade negotiations between India and the United States are set to gain momentum.Forex traders said the rupee opened on a positive note with oil prices remaining supportive and foreign inflows improving. The overall bias remains positive for the rupee, they said.Moreover, Indian Foreign Secretary Vikram Misri on Thursday said trade was a major subject of discussion between Prime Minister Narendra Modi and US President Donald Trump, with…
Silver price (XAG/USD) extends its losses for the third successive day, trading around $64.40 per troy ounce during the Asian hours on Friday. Silver prices fall as the traders price in the hawkish sentiment surrounding the Federal Reserve (Fed) policy outlook. Higher borrowing costs increase the opportunity cost of holding non-yielding assets like Silver, reducing their appeal.In his debut press conference, newly appointed Federal Reserve (Fed) Chairman Kevin Warsh emphasized that “price stability” remains the Fed’s ultimate guiding principle. The Federal Open Market Committee (FOMC) voted unanimously on Wednesday to hold its benchmark overnight borrowing rate steady at a range…
The yen was pinned near four-decade lows on Friday, with markets on heightened intervention watch as neither a U.S.-Iran peace deal nor a rate hike in Japan managed to arrest its prolonged slide. The yen was 0.1% stronger against the U.S. dollar at 161.205 yen, steadying after dropping to a two-year low on Thursday, though holidays in the U.S. and much of Asia kept liquidity thin. Most other currencies were little changed as shipping in the Strait of Hormuz returned to normal after the signing of the U.S.-Iran peace deal earlier this week, though question marks remain over whether the…
The dollar staged its biggest two-day rally in nearly three months, driving it back toward the late-March peak, as traders piled into bets that the Federal Reserve will start raising interest rates as soon as late next month.The advance has driven the Bloomberg Dollar Spot Index up some 1% as Wednesday’s Fed meeting, the first under Chairman Kevin Warsh, buttressed speculation that the central bank will start tightening monetary policy to rein in the recent surge of inflation.As bond traders positioned for the shift, driving short-term Treasury yields up sharply, global investors were given a renewed incentive to shift money…
Mumbai: The rupee strengthened for the fifth consecutive session to end at 94.33 on Thursday, versus its previous close of 94.52 per dollar. The rupee opened at 94.66, and later strengthened to an intraday high of 94.16, which prompted the Reserve Bank of India to intervene and absorb dollars. Its weakest level on Thursday was at 94.70 per dollar.Brent crude oil prices below $78 per barrel and unwinding of long dollar positions helped the currency gain to a six week high, traders said. Source
Japan’s National Consumer Price Index (CPI) rose by 1.5% YoY in May, compared to the previous reading of 1.4%, according to the latest data released by the Japan Statistics Bureau on Friday.Further details unveil that the National CPI ex Fresh food arrived at 1.4% YoY in May versus 1.4% prior. The figure came in line with the market consensus. CPI ex Fresh Food, Energy climbed 1.8% YoY in May compared to the previous reading of 1.9%.Market reaction to Japan’s National CPI dataFollowing Japan’s CPI inflation data, the USD/JPY pair is up 0.42% on the day at 161.32. Inflation FAQs Inflation measures the rise in the price of…
The rupee closed higher for the fifth consecutive trading session, buoyed by the US and Iran signing an initial agreement to end the West Asia conflict. This softened crude oil prices, which will reduce India’s import bill.The rupee closed 20 paise stronger at 94.33 per US dollar against the previous close of 94.53. Intra-day, it touched a high of 94.21, the strongest level in over six weeks.Amit Pabari, MD, CR Forex Advisors, said: “For now, markets are focused on the possibility of peace. As a result, Brent crude slipped below $79 per barrel on Thursday, returning to levels last seen…
EUR/USD trades around 1.1470 on Thursday at the time of writing, down 0.22% on the day and hovering near its lowest level in two months. The pair extends its decline from the area above 1.1600 reached earlier this week, as the US Dollar (USD) continues to benefit from the Federal Reserve’s (Fed) hawkish policy outlook.The Fed left its benchmark interest rate unchanged within the 3.5%-3.75% range on Wednesday, in line with market expectations. However, updated economic projections showed that roughly half of the Federal Open Market Committee (FOMC) members still expect at least one additional rate hike before the end…
The Reserve Bank of India (RBI) on Thursday said it will conduct a three-day variable rate repo (VRR) auction of Rs 1 lakh crore on June 19, according to a notification.The auction will take place between 9.30 am and 10 am on June 19, and the reversal of these funds will take place on June 22, the release said.”On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo (VRR) auction on Friday, June 19,” the RBI said in a release.Currently, the liquidity in the banking system is estimated to be in…