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USD/JPY is climbing to fresh multi-month highs as long-term Japanese government bond yields rise on fiscal concerns and a worsening Japan-China diplomatic spat, BBH FX analysts report. Japanese bonds sell-off fuels Yen weakness”USD/JPY is making fresh multi-month highs, underpinned in part by the sell-off in JGBs. Long-term JGBs yields are breaking higher on concerns over fiscal profligacy and worsening Japan-China diplomatic spat. Japan’s Prime Minister Takaichi is planning a fresh package of economic measures that is likely to exceed last year’s ¥13.9 trillion (2.2% of GDP) supplementary budget.””In parallel, Chinese Foreign Ministry spokeswoman Mao Ning warned that China will take…

The rupee closed 2 paise higher at 88.58 (provisional) against the US dollar on Wednesday, aided by buying momentum in domestic equity markets and lower crude oil prices overseas. Forex traders said a strong American currency and outflow of foreign capital prevented a sharp gain in the rupee even as investors were concerned about the progress on the proposed India-US trade deal. At the interbank foreign exchange market, the rupee opened at 88.57 and hit an intra-day high of 88.41 against the greenback. The domestic unit settled the day at 88.58 (provisional) against the dollar, logging a marginal gain of…

Here is what you need to know on Wednesday, November 19:The action in financial markets remains relatively subdued early Wednesday following Tuesday’s choppy movements as investors adopt a cautious stance while waiting for the Federal Reserve’s (Fed) October meeting minutes and Nvidia’s earnings report. The US Dollar (USD) captured safe-haven demand and held resilient against its rivals on Tuesday as the selloff in risk-sensitive assets continued. Wall Street’s main indexes lost about 1% on the day and the USD Index closed marginally higher. Early Wednesday, US stock index futures trade mixed, while the USD Index moves sideways slightly above 99.50.…

The rupee gained 9 paise to 88.51 against the US dollar in early trade on Wednesday, supported by lower crude oil prices even as volatile equity markets across the globe weighed on investor sentiment. The rupee also faced pressure due to a strong American currency as well as withdrawal of foreign capital from domestic stock markets, forex traders said. At the same time, investors were concerned about the progress on the proposed India-US trade deal and the domestic PMI data to be released later this week. At the interbank foreign exchange market, the rupee opened at 88.57 and gained further…

EUR/USD moves little after three days of losses, trading around 1.1580 during the Asian hours on Wednesday. The pair may further lose ground as the US Dollar (USD) gains amid declining US Federal Reserve (Fed) rate cut bets for December. The highly anticipated September Nonfarm Payrolls data are scheduled to be released on Thursday.The CME FedWatch Tool suggests that financial markets are now pricing in a 49% chance that the Fed will cut its benchmark overnight borrowing rate by 25 basis points (bps) at its December meeting, down from 67% probability that markets priced a week ago.US Initial Jobless Claims…

The USD/JPY pair extends its upside to a fresh nine-and-a-half-month high near 155.50 during the early Asian session on Wednesday. The uptick of the pair is bolstered by worries about Japan’s fiscal stance and awaited US data for signals on the Federal Reserve’s (Fed) next move. The FOMC Minutes will be in the spotlight later on Wednesday. While Bank of Japan (BoJ) Governor Kazuo Ueda hinted at the chance of raising interest rates as soon as next month, Japanese Prime Minister Sanae Takaichi has voiced displeasure over the idea and urged the Japanese central bank to cooperate with government efforts to reflate the…

AUD/USD trades steady on Tuesday, around 0.6490 at the time of writing, virtually unchanged on the day. The Australian Dollar (AUD) maintains a mild upward bias after the Reserve Bank of Australia (RBA) published Minutes showing policymakers see no urgency to cut the Official Cash Rate (OCR) as domestic demand remains robust and inflation pressures persist. However, the central bank also noted that monetary easing could be considered if growth weakens further or if labor-market conditions deteriorate materially.Markets now turn their attention to Australia’s third-quarter Wage Price Index, due Wednesday, with expectations for a 0.8% QoQ and 3.4% YoY increase.…

Despite a decline in the dollar index, which fell from around 100.35 to 99, the rupee’s resilience may be tested if the index rebounds. The Indian rupee has been stuck inside a narrow range for almost two weeks now. The domestic currency has been oscillating between 88.52 and 88.76. Within this range, it has closed at 88.61 against the dollar on Tuesday.Dollar outlookThe rupee has stayed stable despite the recent fall in the dollar index (99.60). The dollar index fell from around 100.35 to 99 in the first half of this month. However, the index has been attempting to bounce…

The Pound Sterling (GBP) trades subdued against its major currency peers on Tuesday as investors turn cautious ahead of the United Kingdom (UK) Consumer Price Index (CPI) data for October, which will be released on Wednesday.Investors will pay close attention to the UK inflation data to get cues about whether the Bank of England (BoE) will resume its monetary-easing campaign in the December policy meeting.The CPI report is expected to show that headline inflation fell to 3.6% year-on-year from 3.8% in September. In the same period, the core CPI – which excludes volatile items such as food, energy, alcohol, and…

In a range-bound trade, the rupee settled 2 paise lower at 88.61 (provisional) against the US dollar on Tuesday in line with negative sentiment in equity markets.The emergence of foreign fund inflows, a weak greenback and lower crude oil prices helped the Indian currency resist downward pressure, traders said.At the interbank foreign exchange market, the rupee opened at 88.67 and moved in a tight range of 88.69 and 88.58 against the dollar. The unit finally settled at 88.61 (provisional), down 2 paise from its previous closing level. Investors were concerned about increasing import bills and the widening trade deficit of…