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The Pound Sterling (GBP) advances over 0.70% on Wednesday as risk appetite improved amid speculation of an end to the Middle East conflict, following US President Donald Trump’s statement, “We’re going to be out of Iran pretty quickly.” GBP/USD trades above 1.3300 after bouncing off daily lows of 1.3216.Sterling advances as risk-on mood dents US Dollar despite hot pricesOn Tuesday, rumors surfaced that Trump was considering withdrawing from the conflict, even though the Strait of Hormuz would remain shut. Nevertheless, a Daily Mail columnist reported that sources at the White House said Trump is “considering taking Kharg Island.”Risk appetite improved…
The Reserve Bank of India on Wednesday barred authorized dealers from offering rupee non-deliverable forwards to resident and non-resident clients, further tightening foreign exchange rules as the South Asian currency faces persistent pressure.The central bank said that while lenders could offer deliverable foreign exchange derivative contracts to users to meet their hedging requirements, they need to ensure the clients have not taken an offsetting position in the non-deliverable forwards (NDF) market.The changes follow the regulator’s decision last week to impose a $100 million cap on authorised dealers’ net open positions on the rupee in the foreign exchange market, applicable by…
HSBC’s global CIO team keeps an Overweight six‑month view on global equities, supported by AI‑related opportunities and resilient earnings. They favour the United States, Japan and Asia ex‑Japan, while staying Underweight Europe ex‑UK and Neutral on Emerging Markets overall. Sector-wise, they highlight Industrials, Communications, Materials and Utilities, and downgrade Consumer Discretionary on weaker sentiment and higher energy costs.Overweight global, US, Japan and Asia ex-Japan”While market uncertainty persists, the fundamental backdrop for global equities remains supportive. With AI broadening opportunities across sectors and regions, we continue to diversify beyond the US and technology to reduce concentration risk.””[Japan] Wage growth and fiscal…
The US Dollar (USD) is trading lower against its main peers on Wednesday, as Trump’s comments hinting at a swift end to the war in Iran have boosted investors’ appetite for risk. The Dollar Index (DXY), which measures the value of the US Dollar against a basket of six currencies, has lost about 1% in the last two days, returning to levels near 99.50 from weekly highs at the 100.60 area.US President Trump rattled markets on Tuesday, affirming that the US army would exit Iran in the next two or three weeks, whether there is a deal or not. He…
At the interbank foreign exchange, the rupee opened stronger at 93.62. The rupee gained 15 paise to 94.70 against US dollar in early trade on Wednesday, tracking positive cues from domestic equity markets and retreating American currency overseas.The local currency, however, remained under pressure due to higher crude oil prices and sustained withdrawal of foreign funds even as banks moved to cut their net open position in the currency following the RBI mandate, forex traders said.Through its circular dated March 27, 2026, RBI capped the Net Open Position (NOP-INR) for banks at $100 million, with compliance required by April 10.At…
The NZD/USD pair attracts some sellers following a modest Asian session rise to the 0.5760 area, or the weekly top, and stalls the previous day’s recovery move from over a four-month low. Spot prices slide to the 0.730 region in the last hour and seem vulnerable to prolonging the downtrend witnessed over the past two months or so.The optimism led by US President Donald Trump’s signal that the US would wind down current hostilities with Iran within two to three weeks remains limited amid reports that the UAE is pushing for military action to reopen the Strait of Hormuz. Adding…
India’s rupee may weaken to a record 100 per dollar or beyond if the Iran war drags on, with strategists warning that authorities’ efforts to slow its roughly 10% drop over the past year may only provide temporary relief.Analysts at Wells Fargo and Van Eck Associates Corp. say elevated oil prices will accelerate the rupee’s decline by worsening inflation and the current-account deficit. Options markets echo that view, with pricing suggesting further losses and signaling expectations of a move toward 100.Already one of Asia’s worst performers against the dollar this year, the rupee’s slide has spurred the Reserve Bank of…
TD Securities’ Global Strategy Team reports that China’s March PMIs moved back into expansion, with Manufacturing and Non-manufacturing both beating expectations. They attribute the rebound partly to firms front-loading orders due to the US-Iran war and caution that a sustained recovery is unlikely without significant policy support, especially with construction still in contraction.Expansionary PMIs tempered by policy doubts”China PMIs rebounded into expansion (>50) in March, with both indices surpassing expectations.””Manufacturing PMI came in at 50.4 (cons: 50.1, prior: 49), led by big jumps in output and new orders.””This tracks closely to the rebound in these categories from global PMIs as…
The Pound Sterling registers modest gains after Iran’s IRGC threatened to attack US companies as of April 1, turning market mood sour, while the US Dollar trimmed some of its earlier losses. Nevertheless, the move was short-lived as the GBP/USD traded at 1.3190, up 0.04%.Sterling gains as soft JOLTS counters Iran threat and DollarIran’s state media reported that Iran’s Islamic Revolutionary Guard Corps (IRGC) would target US companies within the region in retaliation for attacks on Iran. Some of the names targeted are Microsoft, Apple, Google, Intel and Boeing among the 18 companies warned by the IRGC.In the headline, the…
BNY’s Head of Markets Macro Strategy Bob Savage notes that the Indian Rupee (INR) faces continued pressure, recording the highest level of realized selling among Asia-Pacific (APAC) currencies in March. Despite the significant sell-off, BNY’s tracking indicates that actual positioning remains largely flat, as the currency was previously heavily overheld for carry strategies. Savage highlights that a true value opportunity will only materialize if the currency transitions into underheld territory.Assessing the risk reward payoff”On a monthly average basis within APAC (and measured against other currencies in iFlow), INR was the most-sold currency on a realized basis.””On a holdings basis, monthly…