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Rupee has seen a V-shaped kind of a move in the last month or so. There was tremendous dollar buying around 88.80, and the RBI seemed committed to defending that level.RBI perhaps got a sense of the extent to which interbank was looking to position long when a major IPO-related outflow went through. Until then, the RBI was merely supplying dollars to ensure that 88.80 did not break.Seeing the market’s skewed positioning, the RBI may have decided to whack down USDINR to crush the speculative longs. On a day when there was positive news overnight regarding the India-US trade deal…

The Indian rupee was little changed on Wednesday, wedged between persistent importer dollar bids and the positive cue from an uptick in wagers on a rate cut by the U.S. Federal Reserve next month, that also boosted dollar-rupee forward premiums. The rupee was at 88.60 against the U.S. dollar as of 11:30 a.m. IST, down marginally from its close at 88.5675 in the previous session Weakness in U.S. private payrolls data for October released on Tuesday prompted traders to add to wagers that the Fed will deliver a 25 basis point rate cut next month, driving down near-tenor U.S. Treasury…

Highlights Importer hedging up over 30% on average in 2025, outpacing 11% rise in exporter activity Exporters face uncertainty in US shipment volumes and payment timing RBI has been intervening routinely to support rupee over last two months Months of uncertainty over a US-India trade deal have distorted India’s FX hedging landscape as expectations that the rupee may weaken further have amplified importer hedging while exporters hesitate, leaving the central bank to shoulder the resulting pressure on the currency.Hefty US tariffs on Indian goods went into effect in August and despite multiple rounds of talks, a deal has proven elusive.…

The rupee depreciated 15 paise to 88.65 against the dollar in early trade on Wednesday, weighed down by elevated crude oil prices and foreign fund outflows. Forex traders said renewed optimism over the India-US trade deal supported the domestic unit at lower levels. At the interbank foreign exchange, the rupee opened at 88.61 against the US dollar before dropping to 88.65, down 15 paise from its previous close. On Tuesday, the rupee had settled at 88.50 against the US dollar. Forex traders said the MSCI Review may result in positive foreign fund inflows. Global index provider MSCI announced the inclusion…

Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said on Wednesday, “Our best guess is the monetary policy is still restrictive, the committee is debating this.”Additional quotesIf it turns out we are no longer mildly restrictive, that has important implications for future policy.We probably had an erratic reading from Westpac Consumer Sentiment Survey, would see if it persists.Some ups, some downs in consumption readings, central case is for gradual, modest recovery.There are no levels of unemployment that will make central bank happyNew board structure well-suited for Australia, votes are unnamed to encourage debate.Some public engagement of board members has taken…

GBP/USD hit a fresh bearish challenge on Tuesday, hitting a snag and snapping a four-day winning streak. The pair remains hamstrung just south of the 1.3200 handle, and Cable traders will need a fresh shock to push Pound Sterling (GBP) bids back onto the high side.UK employment figures broadly missed the mark on early Tuesday, with the ILO Unemployment Rate rising faster than expected, and more consumers seeking unemployment benefits than markets anticipated.  Baseline wages info came in more or less as expected, but wages plus bonuses eased back more than expected, highlighting consumers’ difficulties in negotiating for higher employment…

The Euro (EUR) trades on the front foot against the British Pound (GBP) on Tuesday as the Pound comes under pressure following weak UK labor market data. At the time of writing, EUR/GBP is trading around 0.8800, up nearly 0.30% on the day.From a technical perspective, the daily chart shows that the pair remains comfortably above its key moving averages, keeping the broader outlook bullish.On the upside, immediate resistance lies near 0.8830, the November 5 high, which also marks the year-to-date peak and the highest level since April 2023. A decisive close above this zone would open the door for…

Gold (XAU/USD) is trading higher for the third consecutive day on Tuesday, with bulls pushing against the $4,150 resistance area at the time of writing.. A somewhat softer US Dollar in moderate risk-on markets is underpinning precious metals as investors await developments on US government funding.reactedThe US Dollar Index, which measures the value of the Greenback against a basket of currencies, reacted negatively to news reporting that the US Senate had reached a deal to end the largest government shutdown in history on Monday. The bill will be sent to the House, where it is expected to pass smoothly before…

The Indian rupee inched up on Tuesday, helped by modest inflows and dollar sales from state-run banks, but progress in U.S.-India trade negotiations remained the focal point for future direction, traders said.The rupee closed at 88.5675 against the U.S. dollar, up 0.1% on the day.The currency lingered near the 88.70 mark for most of the session, with dollar sales from a few foreign banks prompting an uptick in the latter half, traders said.The market took note of the optimistic remarks on U.S.-India negotiations but the reaction was muted as investors wait for concrete developments. On Monday, U.S. President Donald Trump…

Elevated crude oil prices and foreign fund outflows expected to rein in rupee’s uptrend | Photo Credit: Andrii Yalanskyi The rupee appreciated 23 paise to settle at 88.50 against the US dollar on Tuesday, amid progress on the US shutdown bill and optimism over the US-India trade deal.Forex traders said a rebound in domestic equities and optimism over a nearing US trade deal supported the local unit.However, elevated crude oil prices and foreign fund outflows weighed on investor sentiment.At the interbank foreign exchange market, the rupee opened at 88.69 against the American currency, touched an intraday high of 88.52 and…