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The rupee opened on a flat note and gained 3 paise to 95.34 against the US dollar in early trade on Tuesday, as support from the broad-based weakness in the US Dollar Index amid improving global risk sentiment was negated by dollar demand from importers.Forex traders said lower oil prices and a softer US dollar outweighed importer demand for dollars, with market participants now turning their attention to the upcoming RBI MPC decision and key US economic data later this week for further direction.At the interbank foreign exchange market the rupee opened at 95.35, then touched 95.34, registering a gain…
The AUD/JPY cross trades in positive territory near 110.70, snapping the six-day losing streak, during the early European trading hours on Tuesday. However, the potential upside for the cross might be limited due to the coordinated intervention between the United States (US) and Japan, which could provide some support to the Japanese Yen (JPY) against the Australian Dollar (AUD). “The view that FX intervention cannot have a lasting impact and merely alters short-term market flows seems right in many cases. However, depending on the circumstances and broader context, intervention can exert a significant influence on the market and trigger an inflection,”…
Federal Reserve (Fed) Chair Kevin Warsh is reportedly weighing whether the US central bank should hold fewer policy meetings each year, according to the New York Times, citing four people familiar with the matter.Bloomberg later reported that Warsh floated a schedule of six rate-setting meetings a year, plus two additional meetings focused on broader economic issues.The eight regular FOMC meetings a year to set interest rates have been standard since the 1980s, and next year’s tentative meeting dates have already been posted on the Fed’s website. Any reduction would mark a major change to a monetary policy framework that has…
The Japanese yen held gains above recent 40-year lows on Monday after Japan and the United States launched a rare joint yen-buying intervention and vowed to take further action if needed to shore up the currency. The intervention on Friday underscored both countries’ resolve to prevent a selloff in the yen and Japanese government bonds from causing global spillovers, such as adding upward pressure on already rising U.S. Treasury yields, analysts said. The joint intervention, announced by Japan’s finance ministry and U.S. Treasury Secretary Scott Bessent, was the first since 2011’s coordinated action to weaken the yen following a devastating…
West Texas Intermediate (WTI) US Oil trades around $78.45 at the time of writing on Monday, down 7.76% on the day, as investors unwind the geopolitical risk premium following announcements of a potential agreement between the United States (US) and Iran.US President Donald Trump said that a large-scale military strike against Iran had been suspended after Tehran agreed to the framework of a deal covering its nuclear program and the reopening of the Strait of Hormuz. The US President also said that talks between the two countries are scheduled to begin on Monday afternoon, fueling expectations of a de-escalation that…
The RBI made a net sale of $14.9 billion in the foreign exchange market during January-May 2026 to contain excessive volatility in the rupee, the government informed Parliament. The RBI’s foreign exchange intervention during January-May 2026 amounted to a net sale of USD 14.9 billion to check excess volatility of the rupee, Parliament was informed on Monday.The value of the Indian Rupee (INR) is market-determined, with no target or specific level or band, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha.“The Reserve Bank of India (RBI) regularly monitors the foreign exchange market…
Nordea economists Kjetil Olsen and Sara Midtgaard expect Norges Bank to leave the policy rate at 4.25% at next week’s meeting. They highlight that June core inflation was well below the Bank’s projection and see July data remaining subdued. With unemployment and the Norwegian krone broadly in line with forecasts, they anticipate no immediate move while awaiting more inflation evidence.Rate decision preview and inflation”We expect Norges Bank to leave the policy rate unchanged at 4.25% next week.””With inflation clearly below Norges Bank’s forecast, and with both unemployment and the Norwegian krone broadly in line with the June projections, a revised…
Chris Turner at ING argues EUR/USD should be performing better given solid Eurozone data, lower Oil prices and Japanese US Dollar (USD) selling, but notes possible US activity in EUR/JPY as a short-term drag. He stresses that the Federal Reserve’s (Fed) September decision and this week’s US data will determine whether EUR/USD tests 1.1615/20 resistance or falls back below 1.15.Fed decision to steer trend”EUR/USD should probably be doing better, buoyed by decent eurozone hard data last week, lower oil prices and lots of dollar selling from Japan. The fact that it is not may partially be owed to the news…
Silver price (XAG/USD) rises after registering modest gains in the previous day, trading around $58.20 per troy ounce during the Asian hours on Monday. Silver prices climb as market sentiment shifted following statements from US President Donald Trump, who announced that peace talks with Iran are set to resume on Monday. The prospect of diplomacy helped send oil prices lower, offering relief to investors concerned about rising inflation and the broader outlook for interest rates.President Trump noted that key Middle Eastern allies, including Saudi Arabia, had urged him to halt planned military strikes in favor of a diplomatic solution, while…
The USD/JPY pair recovers some lost ground to near 157.65, snapping the three-day losing streak during the early Asian trading hours on Monday. Traders remain on high alert for further intervention from the US and Japan after coordinated operations in Tokyo and New York last week triggered a dramatic rebound in the currency.Bloomberg reported that Japan’s Finance Ministry and US Treasury Secretary Scott Bessent are now working together to a degree unseen in decades to shore up the currency. Bessent said that the US wouldn’t hesitate to step into the market again. Meanwhile, Japan confirmed the first joint intervention with…