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Gold (XAU/USDS) kicks off the week under pressure, hovering near one-month lows as hawkish interest rate expectations continue to weigh on the non-yielding metal amid ongoing tensions in the Middle East. At the time of writing, XAU/USD is trading around $4,560, down nearly 1.10% on the day.Strait of Hormuz tensions keep markets on edgeMarket sentiment remains fragile amid uncertainty over the future of US-Iran peace talks, with tensions escalating. Iran’s Fars news agency reported that two missiles struck a US naval vessel near the island of Jask after it allegedly ignored warnings from the Islamic Revolutionary Guard Corps (IRGC) to…
With the Indian rupee slipping to fresh record lows and crude oil staying above $100 a barrel, the Reserve Bank of India is weighing a rare set of measures last seen during the 2013 currency crisis to shore up dollar reserves and slow the currency’s slide.According to Reuters, the RBI is studying ways to attract fresh dollar inflows, including reviving a special deposit window for non-resident Indians and easing tax rules for foreign investors in government bonds, as pressure builds on the rupee amid the Iran conflict, rising oil prices and persistent capital outflows.The rupee on Monday closed at a…
Rupee fell 39 paise to close at an all-time low of 95.23 (provisional) against the US dollar on Monday, as the ongoing West Asia tensions cause volatility in global markets, keeping oil prices high and raising fears of inflation and economic slowdown.Forex traders said Brent oil, hovering near $110 per barrel, is maintaining pressure on oil-importing economies such as India. Moreover, factors such as unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiments further.At the interbank foreign exchange market, the rupee opened at 94.95 against the US dollar, then lost ground and finally settled for the day at…
Commerzbank’s Michael Pfister argues the Swiss National Bank (SNB) has few sustainable tools to weaken the Swiss Franc (CHF) against major currencies such as the US Dollar (USD). Large-scale FX interventions like those before 2024 are seen as unlikely due to balance-sheet risks and political constraints, leaving the long-run bias toward a structurally stronger Swiss Franc despite near-term relief.SNB constrained on lasting CHF weakness”The SNB’s verbal interventions and its apparently swifter response do nothing to address a fundamental problem: the central bank has limited options for weakening the franc in the long term.””In order to influence the franc’s long-term direction,…
The rupee depreciated 11 paise to 94.95 against the US dollar in early trade on Monday as the ongoing tensions in the Middle East continue to keep markets on edge.Forex traders said Brent oil is hovering near $108, maintaining pressure on oil-importing economies like India.Moreover, factors such as unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiments further.At the interbank foreign exchange market, the rupee touched 94.95 against the US dollar in initial trade, registering a fall of 11 paise over its previous close.On Thursday, the rupee had settled at 94.84 against the American currency.Stock exchanges and currency…
Gold (XAU/USD) attracts some sellers during the Asian session on Monday, though it lacks bearish conviction and shows some resilience below the $4,600 mark. Major central banks, including the US Federal Reserve (Fed), have turned hawkish in the wake of concerns that energy shocks stemming from geopolitical tensions in the Middle East would revive inflationary pressures. This, in turn, is seen as a key factor undermining demand for the non-yielding yellow metal.US President Donald Trump announced a plan to guide ships stranded in the Gulf through the Strait of Hormuz under a project called “Project Freedom” and also warned that…
Efforts to mediate an end to the Iran war persisted as the war in Iran entered its third month, and US President Donald Trump hinted that Tehran’s latest peace proposal might not be enough to satisfy him, Bloomberg reported on Sunday.Iran’s suggestions include setting a one-month deadline on talks for a deal to reopen the Strait of Hormuz and end both the US naval blockade and the conflict in Iran and Lebanon, according to Axios, which cited two sources familiar with the matter.The source said that if such a pact is reached, another month of discussions would then begin in…
The dollar was headed for its biggest weekly loss against the yen since February on Friday after Japan was reported to have intervened to support its currency.Markets remained on edge after Japan’s top currency diplomat, Atsushi Mimura, said speculative positions were still evident, underscoring authorities’ unease over rapid yen moves.The dollar briefly slid from around 157.1 to 155.49 against the yen before recouping some losses after Mimura’s remarks. It was last up 0.26% to 157.04.”The durability of intervention remains uncertain,” said Uto Shinohara, senior investment strategist at Mesirow Currency Management in Chicago.”Historically, its effects tend to fade without accompanying policy…
AUD/USD holds to minimal gains of 0.10% late in the North American session, yet poised to finish the week up 0.84%. At the time of writing, the pair trades above 0.7200 as the ‘bullish engulfing’ chart pattern caps the Aussie on the downside.AUD/USD Price Forecast: Technical outlookFrom a technical perspective, the AUD/USD trades near the top of a 100-pip consolidation range between 0.7100 and 0.7200, with traders awaiting fresh catalysts. Momentum is bullish as depicted by the Relative Strength Index (RSI) sitting above its neutral level.On the upside, the first resistance for AUD/USD is the psychological 0.7250 level. If cleared,…
The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, turns higher on Friday, recovering from earlier weakness, though it remains on track to close the week in negative territory.It has been a volatile week for the US Dollar, with price action driven by suspected intervention by Japanese authorities, ongoing Middle East tensions, and renewed trade concerns. At the time of writing, the DXY is trading around 98.21, rebounding from a two-week low of 97.72 reached earlier in the day.Trade tensions resurfaced after US President Donald Trump threatened to raise tariffs on European…