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The Indian rupee fell to a record low on Monday as Indian assets dropped on worries that the Middle East conflict could keep energy supplies disrupted for longer, raising risks for Asia’s third-largest economy.The rupee fell to 93.98 against the U.S. dollar, eclipsing its previous low of 93.7350 hit on Friday.It dipped past the 94-per-dollar mark on the interbank order matching system after the local spot trading session ended at 3:30 p.m. IST. The South Asian currency has declined about 3% since the Iran war began on February 28, hurt by an over 50% surge in oil prices and severe…
Highlights Dollar climbs as stocks tumble on Iran war IEA’s Birol warns crisis worse than 1970s oil shocks Japan says ready to counter forex volatility The dollar rose on Monday as escalating retaliatory threats in the West Asia conflict sent stocks tumbling and lifted demand for safe-haven assets.Hopes for an off-ramp to hostilities dimmed over the weekend, with US President Donald Trump threatening to strike Iran’s electricity grid and Tehran vowing to hit back at its neighbours’ infrastructure.The head of the International Energy Agency, meanwhile, said the crisis is worse than the two oil shocks of the 1970s put together.“The…
DBS Group Research economist Philip Weeargues that although risk aversion from the Iran conflict usually supports the Dollar, this time the USD’s haven appeal may prove short-lived. He points to a Fed pause versus G10 rate hikes and pressure on US Treasuries from rising fiscal concerns. The backdrop recalls last year’s credibility hit from Liberation Day tariffs.Risk-off support offset by policy headwinds”While risk aversion typically leads to a flight to the USD, this haven appeal may be short-lived.””The USD faces a hawkish wall following last week’s central meetings, which pitted a series of G10 rate hikes against a Fed pause.””Furthermore,…
Opening about 14 paise weaker at 93.8475, the Indian currency has tested a high/low of 93.81/93.95 per USD in intraday trades so far. It is currently trading at 93.9175 so far. | Photo Credit: istock.com The intensifying West Asian war, with the US-Israel alliance pounding Iran and the latter retaliating with drone/missile strikes is having a telling effect on the Rupee, which is fast depreciating towards the 94 to the US Dollar mark.Soaring energy prices, re-routing of trade routes and FPIs pulling out of the domestic equity markets is weakening the Rupee.Opening about 14 paise weaker at 93.8475, the Indian…
Gold (XAU/USD) adds to its recent heavy losses registered over the past three weeks or so and attracts some follow-through selling for the fourth consecutive day on Monday. The commodity dives to its lowest level since early January during the Asian session, though it finds some support ahead of the $4,300 mark. Any meaningful recovery, however, seems elusive in the wake of hawkish stances from major central banks, which tend to undermine the non-yielding yellow metal.The Bank of Japan (BoJ) maintained its bias toward monetary policy normalization and warned that surging Crude Oil prices driven by the Middle East conflict…
The Indian rupee fell to a record low on Monday, as an escalating Middle East conflict stoked worries over sustained disruption of energy supplies, threatening the outlook for Asia’s third-largest economy.The rupee fell to 93.95 against the U.S. dollar, eclipsing its previous low of 93.7350 hit on Friday.Asian currencies were down between 0.1% to 0.8% as hopes for an off-ramp to hostilities dimmed over the weekend with Washington and Tehran trading threats as the war entered its fourth week.The conflict has boosted oil prices by over 50% this month. The International Energy Agency has said the crisis is worse than…
Gold price (XAU/USD) tumbles to around $4,460 during the early Asian trading hours on Monday. The precious metal remains under selling pressure amid a stronger US Dollar (USD), rising bond yields and concerns about inflation linked to energy prices. Ongoing conflicts in the Middle East push energy prices higher and reduce expectations of US interest rate cuts. This, in turn, could weigh on the non-yielding Gold in the near term. The Federal Reserve (Fed) held interest rates steady at a target range of 3.50% to 3.75% following its March meeting last week. The median “dot plot” projection still suggested one 25-basis-point (bps) rate cut later…
Here is a rundown of latest headlines surrounding the crisis in the Middle East as the United States (US) and Israel’s war against Iran enters the fourth week:US President Donald Trump said on Saturday that they will “obliterate” Iran’s power plants, starting with the biggest one, if they refuse to open the Strait of Hormuz within 48 hours.Iran warned that it will retaliate and target all US-linked energy infrastructure in the Middle East if the US attacks its power plants. In a statement published on Sunday, Iran’s Revolutionary Guards said that the Strait of Hormuz will be completely closed if…
The Indian rupee plunged as much as 110 paise on Friday, recording its steepest single-day rout since late 2022, after oil surged amid an unrelenting barrage of attacks by either side on respective energy installations in West Asia. It slumped to a historic low of 93.73 amid a report that New Delhi paid a significant price premium for its Thursday oil supplies before the unit closed at 93.71/$.The pace of decline was rather quick, seemingly compensating for the Thursday trading holiday in Mumbai, with traders saying that market estimates of the central bank’s short dollar positions and sustained sales of…
Silver price (XAG/USD) retreats late in the North American session, down by over 6.80% in the day, poised to finish the week with losses of more than 15.70%, posting its second-largest weekly loss since the one that ended down 17.39% on January 30. At the time of writing, XAG/USD trades at $67.89.XAG/USD Price Forecast: Technical OutlookAlthough turned bearish this week, Silver remains upward biased as long as the bulls keep spot prices above the February 6 swing low of $64.10. In the short term, XAG/USD turned negative after falling below the 100-day SMA at $72.55, which exacerbated a drop below…