Author: admin
Gold (XAU/USD) edges lower on Friday, heading for a second straight weekly decline as higher-for-longer interest rate expectations continue to dominate price action amid rising inflation concerns driven by elevated Oil prices. At the time of writing, XAU/USD is trading around $4,577, hovering just above the one-month low of $4,510 reached earlier this week.Higher energy costs have already pushed inflation higher across major economies since the US-Iran war began, prompting central banks to reassess the monetary policy path. Major central banks, including the Federal Reserve (Fed), European Central Bank (ECB), Bank of England (BoE) and Bank of Japan (BoJ), kept…
The US Dollar (USD) remains practically flat against the Swiss Franc (CHF) on Friday, wavering within a few pips above 0.7800, on track for a 0.35% weekly loss after dropping from highs above 0.7900 the previous day. The softer-than-expected Swiss Retail Sales data have failed to impact the pair, while an alleged intervention by Japanese authorities to stem Yen weakness has hit the Greenback across the board.The Swiss Federal Statistics Office revealed on Friday that retail consumption year-on-year rose 0.5% in March, slightly above the 0.4% growth seen in February, but well short of the 1% increase forecasted by market…
The Indian rupee closed at a record low of 94.90 against the dollar on Thursday after touching an all-time intraday low of 95.33/$. The currency pared some of its losses in the final half-hour of trade, likely aided by intervention from the Reserve Bank of India, as the central bank is seen keen to prevent the rupee from closing beyond the psychologically important 95/$ mark, traders said. The rupee had previously closed at 94.85/$The currency, in what was a very volatile session, traded in a range of nearly 50 paise, between 95.35/$ and 94.86/$, very different from its usual 20-25…
The AUD/JPY cross holds positive ground near 113.10 during the early European session on Friday. The cross remains firm after pulling back from a multi-decade high of 114.72. However, the potential upside for AUD/JPY might be limited amid intervention fears. Atsushi Mimura, Japan’s Vice Finance Minister for International Affairs and top foreign exchange official, on Friday declined to confirm the Japanese Yen (JPY) intervention directly but delivered a pointed warning to speculators, noting that Japan’s Golden Week holidays have just started and that there is no change to his view that market moves remain speculative in nature. On the other hand, a…
How soon will the Reserve Bank of India raise rates and how high will it have to take them? Those have become urgent questions for bankers in Mumbai after elevated energy-import costs pushed the rupee to a record low Thursday.India’s challenge is similar to Japan’s, where the yen slid past the 160 mark against the dollar to its weakest level since 2024. Just as the Bank of Japan under Governor Kazuo Ueda is reluctant to commit to a rate increase, his RBI counterpart Sanjay Malhotra, too, has signaled a preference to stay on pause. The central bank would step in,…
The EUR/USD pair attracts some buyers to around 1.1730 during the early Asian session on Friday. The Euro (EUR) strengthens against the US Dollar (USD) after the European Central Bank (ECB) kept interest rates on hold at its April meeting. The ECB governing council opted to hold its benchmark deposit facility rate at 2% on Thursday despite a surge in inflation in the Eurozone since the war in Iran began. According to the statement, the central bank said the inflation outlook was largely unchanged: “The upside risks to inflation and the downside risks to growth have intensified.”The ECB stated that it…
USD/CAD trades on the back foot on Thursday as renewed weakness in the US Dollar (USD) supports the Canadian Dollar (CAD), while the latest US economic data fails to provide support to the Greenback. At the time of writing, the pair is trading around 1.3612, down nearly 0.53% on the day.The US Dollar is under pressure amid possible FX intervention by Japanese authorities to curb sustained weakness in the Japanese Yen (JPY). Reuters, citing Nikkei which quoted a government source, said Japan may have intervened by buying Yen and selling Dollars. However, there has been no official confirmation so far.The…
TD Securities reports the Bank of Canada (BoC) left rates at 2.25% with a cautious tone, highlighting trade uncertainty and a soft labour market while modestly upgrading 2026 growth. The team expects no policy changes through 2026 and two hikes in 2027. They see front-end Canadian rates as too cheap and forecast USD/CAD trading choppily around current levels in Q2.BoC on hold with conditional guidance”The Bank of Canada held rates unchanged at 2.25% in April.””The communique had a cautious tone, with the Bank downplaying positive growth impacts from higher energy prices and paying special attention to trade uncertainty and a…
The Indian rupee fell to a record low on Thursday, as investors fretted over the economic risks confronting India from a resurgence in crude oil prices to 2022 highs, threatening the inflation-economic growth balance for the net energy importer and sapping capital flows.The currency fell to 95.3250, down 0.5% on the day, eclipsing its previous all-time low of 95.21 hit in late March.Oil-sensitive Asian peers such as the Indonesian rupiah, Phillippine peso and Thai baht also weakened on Thursday, after Brent crude oil futures climbed to $126 per barrel, the highest in four years.The rupee’s fall has wiped out gains…
The Indian rupee fell to a record low on Thursday, as investors fretted over the economic risks confronting India from a resurgence in crude oil prices to 2022 highs, threatening the inflation-economic growth balance for the net energy importer and sapping capital flows.The currency fell to 95.33 per dollar, down as much as 0.5% on the day, eclipsing its previous all-time low of 95.21 hit in late March. It subsequently pared losses to end at 94.91, only marginally weaker compared to the previous session.Oil-sensitive Asian peers such as the Indonesian rupiah also weakened on Thursday, after Brent crude futures climbed…