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Mumbai: Hardening overseas rates, tough competition and strong client demand is forcing banks to tweak their FCNR (B) offerings to attract maximum dollars as banks get into the busy season of the special scheme.ICICI Bank and HDFC Bank, two of the largest private sector banks have both hiked a section of their FCNR (B) rates noting the changed scenario. With overseas rates also higher more banks could join in hiking rates in this scheme, people familiar with banks’ plans said.While ICICI has hiked the rate on its FCNR (B) deposits for $5 million or above to 6.25% from 6%, HDFC…
Capital inflows and proactive measures by the Reserve Bank of India (RBI) helped limit the Indian rupee’s decline in July, even as global crude oil prices surged more than 20 per cent amid escalating geopolitical tensions in West Asia, according to a Bank of Baroda (BoB) research report.The report noted that the rupee depreciated by only 0.8 per cent in July, despite a sharp rise in oil prices, supported by a weaker US dollar, strong foreign capital inflows and RBI intervention in the foreign exchange market.“INR traded cautiously in Jul’26 amidst an escalation in geo-political conflict. It depreciated by only…
Japanese Finance Minister Satsuki Katayama will announce on Monday that Tokyo and Washington took joint action in the currency market to arrest the yen’s slide to 40-year lows, two Japanese government officials told Reuters.Katayama is likely to stress the two countries’ determination to combat what they consider excessive yen declines, said the sources familiar with the matter, on condition of anonymity due to the sensitivity of the matter.One source, asked if Katayama would announce “joint action”, said yes, adding, “The operation is still ongoing.”The Ministry of Finance could not immediately be reached for comment on Sunday. U.S. Treasury officials did…
Mumbai: India’s foreign exchange reserves increased by $6.1 billion to $682.3 billion in the week ended July 24, as inflows from the Reserve Bank of India’s FCNR(B) deposit scheme started to trickle in.Foreign currency assets increased by $4.8 billion to $555.9 billion in the previous week. This increase is despite the central bank heavily selling dollars in the foreign exchange market last week to contain the rupee’s fall. The currency had closed at 96.56 on July 24, very close to its record low of 96.96 as oil prices traded above $100 per barrel.”The pick-up in reserves is likely due to…
CBS News reported that the United States and Israel may engage in a large campaign against Iran, targeting Iran’s energy infrastructure, said multiple sources.The duration would be over the weekend ahead of next week’s Asian open in the financial markets. The article mentions that US sources revealed that Israel has been notified and “are coordinating with the United States.” The US “president has yet to give the final go orders for the strikes, the sources said.”Meanwhile, an Israeli official told CBS News, “Israel is unaware of a decision to restart full military operations, nor has been requested of Israel to…
The Kiwi Dollar extends its three-day rally, climbing above 0.5850 and is poised to challenge 0.5900 amid improving risk appetite and broad US Dollar weakness. The clearance of the 200-day Simple Moving Average (SMA) supports the bullish trend, as traders eye the May monthly high at 0.5995.NZD/USD Price Forecast: Technical outlookThe daily chart shows that market structure is becoming more constructive, indicating further upside in the NZD/USD pair. After surpassing the confluence of the 100- and 200-day Simple Moving Averages (SMAs) at around 0.5821/23, the pair is poised to hurdle the 0.5900 figure.Momentum has clearly shifted bullish. The Relative Strength…
The first full week of August will test whether the US Dollar can recover from its sell-off during the last week of July as investors shift their attention from central bank decisions to a fresh round of economic data. The spotlight will be on July’s Nonfarm Payrolls (NFP) report, while ISM surveys, ADP Employment figures and JOLTS Job Openings will offer additional clues on the strength of the US economy. In Europe, investors will assess whether inflationary pressure is beginning to ease through Producer Price Index (PPI), Retail Sales and Factory Orders data. Meanwhile, China will release key PMI and…
The USD/CHF bounces off weekly lows and meanders around 0.8080 after hitting a daily high of 0.8127, amid presumed intervention, with Nikkei reporting that the US Treasury Department has told currency market participants to prepare for additional intervention, following Thursday’s action by Japanese authorities to boost the Yen.USD/CHF Price Forecast: Technical outlookThe USD/CHF rebounded, reaffirming its upward bias. The market structure suggests the uptrend will continue as long as spot prices remain above the 50-day SMA and the July 10 cycle low of 0.8010.The Relative Strength Index (RSI) is turning bearish, aiming upwards, an indication that a recovery may be…
Gold price tumbles nearly 1.50% on Friday as the US Dollar recovers some ground after Japanese authorities intervened in the foreign exchange markets a day ago, driving the Greenback to a 30-day low before recovering, according to the US Dollar Index (DXY). The XAU/USD trades at $4,045.XAU/USD drops as Treasury yields, Fed dissents and inflation risks pressure BullionThe yellow metal is poised to finish the week with losses of over 0.11%, unable to decisively crack the $4,100 milestone. At the same time, the DXY, which tracks the performance of the buck’s value against six currencies, is down 0.05%, at 99.91,…
Dubai: The UAE could account for more than half of the total Foreign Currency Non-Resident (Bank), or FCNR (B), deposits under the Reserve Bank of India’s special mobilisation window, driven by the Gulf country’s large Indian diaspora, bankers said.Attractive dollar deposit rates and leverage facilities, along with tax-free interest income, triggered the strong response despite representative office restrictions preventing many banks from servicing all prospective customers in the UAE, senior bankers in the region said.Also Read: Dollar inflows through special window to ease banks’ liquidity pressureWhile official, country-wise data is unavailable, bankers estimate that the UAE so far may have…