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The Japanese government, which pursued reflationary policies for two decades, has just introduced a fiscal package aimed at alleviating the burden of recent – yep, _too high_ inflation. While this may sound paradoxical, it is actually not all that surprising, Commerzbank’s Head of FX and Commodity Research Thu Lan Nguyen notes. BoJ faces tightrope as inflation exceeds 3-year target”Firstly, the tolerance of a society that has experienced nothing but deflation or minimal inflation for such an extended period is understandably low when it comes to a more prononunced rise in prices. The protest from the population during the post-pandemic inflation surge was…

The Indian rupee posted its biggest one-day gain in a month on Monday as central bank intervention helped it rebound from near its all-time low, even as traders expect the currency to tilt more towards depreciation in the near-term.The rupee ended at 89.23 against the U.S. dollar, up 0.3% from its close at 89.48 in the previous session. The currency has declined more than 4% so far in 2025 and hit an all-time low of 89.49 on Friday.While the central bank’s presence blunted the immediate pressure on the currency, market participants anticipate a continuing downward bias for the rupee in…

The government bond market was jolted on Friday after a rare data mishap involving the Reserve Bank of India triggered a sharp, unexpected selloff. The 10 year yield rose 4 basis points from 6.52% to 6.56%, post 3 pm largely due to rupee depreciation, where it broke the psychologically significant 89 per dollar level to close at 89.49 on Friday.Volatility spiked in the second half of trading as the rupee weakened sharply, but shock came when a newswire published the central bank’s Weekly Statistical Supplement ahead of schedule, showing the RBI had sold more than Rs 14,000 crore of government…

At the interbank foreign exchange, the rupee opened strong at 89.46 and moved in the range of 89.05 and 89.50 during the day. It eventually settled at 89.20 (provisional), up 46 paise from its previous close. | Photo Credit: istock.com The rupee rebounded sharply by 46 paise to settle at 89.20 (provisional) against the greenback on Monday, due to US dollar selling by banks and importers amid a dip in global crude oil prices.At the interbank foreign exchange, the rupee opened strong at 89.46 and moved in the range of 89.05 and 89.50 during the day. It eventually settled at…

Gold price analysis suggests a consolidation near $4,050 amid dollar strength and geopolitics. Markets await delayed US data releases as the Fed remains uncertain on rate cut policy. Technically, the price stays within trendlines, awaiting a catalyst for a breakout. Gold price extended its downside on Monday, marking a pullback over the past three sessions as market participants reassessed shifting Fed expectations and a stronger dollar. The precious metal is hovering under $4,050 at the time of writing, as the Dollar Index remains close to 6-month highs. A firmer dollar remains a dominant headwind, making bullion expensive for international buyers.…

Gold (XAU/USD) maintains its offered tone through the early European session on Monday, though it lacks follow-through and currently trades just above the $4,050 level, down 0.35% for the day. The recent mixed signals from US Federal Reserve (Fed) officials keep the door open for another interest rate cut in December, which, in turn, fail to assist the US Dollar (USD) to build on its recent gains. Apart from this, persistent geopolitical uncertainties  stemming from the intensifying Russia-Ukraine war and fresh conflicts in the Middle East turn out to be key factors underpinning the safe-haven commodity.Traders also seem reluctant and…

The rupee rebounded on Monday from record lows, rising 49 paise to 89.17 against the greenback in early trade on US dollar selling by banks and a dip in global crude oil prices. A positive opening in the domestic equity markets and intervention by the Reserve Bank of India (RBI) lent support to the domestic unit, according to forex traders. The rupee opened at 89.46 against the greenback before rising to 89.17, up 49 paise from its previous close.The rupee plunged 98 paise to close at its lifetime low of 89.66 against the US dollar on Friday, due to a…

The EUR/JPY cross gains traction near 180.40 during the Asian trading hours on Monday. The Japanese Yen (JPY) softens against the Euro (EUR) amid fiscal concerns and the Bank of Japan (BoJ) rate hike uncertainty. Nonetheless, intervention fears might cap the downside for the JPY. Japan’s Tokyo Consumer Price Index (CPI) report for November will be published later on Friday. Reuters reported on Friday that Japan’s Prime Minister Sanae Takaichi approved a 21.3 trillion yen ($135.4 billion) economic stimulus package. The package contains 17.7 trillion yen in general account outlays, which exceeds the previous year’s 13.9 trillion yen and represents the largest stimulus…

Swiss National Bank (SNB) President Martin Schlegel said that consumer-price growth in Switzerland is expected to accelerate a bit, Bloomberg reported on Saturday.Key quotesInflation in our country is within the range of price stability — so between 0 and 2%. It is currently at the lower end of this range.Our monetary policy is currently expansionary, which means it supports inflation.And if necessary, we’ll adapt our policy, because price stability is our priority.Uncertainty is poison for the economy.Market reactionAt the time of writing, the USD/CHF pair is trading 0.16% higher on the day to trade at 0.8090. SNB FAQs The Swiss National Bank (SNB)…

EUR/USD posts moderate losses during the North American session on Friday as the US Dollar (USD) holds firm after the release of mixed economic data and dovish comments by Federal Reserve (Fed) officials. The pair trades at 1.1504, down 0.20%, after hitting a two-week low of 1.1491.Euro retreats 0.20% as weak US sentiment contrasts with firmer PMIs, markets rise December cut oddsData in the US was mixed, yet the economy shows signs of resilience. The S&P Global Manufacturing and Services PMIs were mixed in November but revealed that business confidence had improved.Other data showed that American households turned pessimistic about…