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The rupee recovered 55 paise from its all-time low level to close at 90.38 (provisional) against the US dollar after a volatile trade on Wednesday, amid suspected aggressive central bank intervention. Analysts said the rupee’s recent fall against the US dollar was primarily driven by external factors, not domestic economic weakness, and the high volatility in the forex market is expected to persist amid shifting economic and geopolitical cues. The lack of progress in the US–India trade negotiations and extended selling by foreign portfolio investors have weighed on the sentiment, while Brent crude oil prices hovering near USD 60 per…

The Indian rupee soared on Wednesday to post its best one-day gain in two months as heavy-handed intervention by the Reserve Bank of India halted its five-day long slide and blunted budding speculative pressure against the currency.The rupee closed at 90.38 per U.S. dollar, up 0.7% from its close of 91.0275 in the previous session.The currency had dropped to its all-time low of 91.0750 in the previous session. It jumped sharply a little after the spot market opened on Wednesday as the RBI stepped in to shore it up, traders said.The intervention echoed the central bank’s actions in October and…

EUR/GBP recovers its recent losses from the previous session, trading around 0.8780 during the European hours on Wednesday. The currency cross gains ground as the Pound Sterling (GBP) declines following the release of weaker Consumer Price Index (CPI) data from the United Kingdom (UK) for November.The UK headline CPI rose 3.2% year-over-year (YoY) in November, above the Bank of England’s (BoE) 2% inflation target. Markets predicted a 3.5% growth in the reported period against the rise of 3.6% in October. Meanwhile, the monthly UK CPI arrived at -0.2% in November, versus a rise of 0.4% reported in October.The UK core…

A day after crossing 91 to the dollar mark and hitting an all time low, the rupee made a smart recovery on Wednesday aided by RBI intervention in the forex market.The development also comes a day after RBI bolstered its ability to intervene in the market by absorbing $5 billion from market participants via a three-year USD/INR buy-sell swap.The Indian currency is currently trading at 90.3475 per USD against the previous close of 91.0275. Abhishek Goenka, Founder & CEO, IFA Global, said the rupee saw a sharp intraday recovery today, strengthening from levels near ₹91.05 to around ₹90.00, aided by…

Mumbai India’s central bank intervened aggressively in currency markets on Wednesday, selling dollars to prop up the rupee, bankers said, echoing its earlier heavy-handed efforts to stem a one-way decline in the currency.The rupee rallied to an intraday high of 89.75 against the US dollar on the interbank order matching system, from near 91.00 seen prior to the intervention. It was last trading at 90.28.”At about 91, the rupee appears overly depreciated. The central bank had stayed relatively light on FX management in December (until now),” said VRC Reddy, treasury head at Karur Vysya Bank.The intervention on Wednesday matched Reserve…

The rupee witnessed high volatility in early trade on Wednesday, as support from easing crude oil prices was offset by uncertainty over the India-US trade deal and persistent foreign fund outflows. Forex traders said the key driver of rupee weakness in December was continued FPI selling across both equity and debt markets, with foreign investors repeatedly selling several billion dollars’ worth of Indian assets on a daily basis in the last few months, the selling intensifying in the last two months. However, with Brent crude oil prices hovering near recent multi-year lows of $59 per barrel, the local unit was…

Gold price (XAU/USD) extends its upside to near seven-week highs above $4,300 during the Asian trading hours on Wednesday. The precious metal gains momentum as the US labor market remains relatively resilient but shows signs of slowing. The mixed US employment report for November reinforces bets of further rate cuts by the US Federal Reserve (Fed) and weighs on the US Dollar (USD). Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.The US central bank delivered its third 25-basis-point rate cut at the December policy meeting last week. However, Fed policymakers are divided on whether additional…

The rupee descended to a fresh record low, breaching the 91-a-dollar mark for the first time before ending 15 paise weaker at 90.93 against the greenback on Tuesday. Axis Bank chief economist Neelkanth Mishra on Tuesday said the rupee is likely to depreciate further, and there is no need to panic over the movements in the domestic currency, which breached its historic low earlier in the day.Mishra, who is also a part-time member in the Economic Advisory Council to the PM, said it will be wiser for the RBI to not target a particular level in its interventions.”The reason I…

The USD/JPY pair attracts some sellers near 154.80 during the early Asian session on Wednesday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) amid growing speculation that the Bank of Japan (BoJ) will hike rates to 0.75% on Friday. The US Nonfarm Payrolls (NFP)rose by 64,000 in November after declining 105,000 in October, the US Bureau of Labor Statistics (BLS) reported on Tuesday. This reading came in stronger than the market expectation for an increase of 50,000. The report also showed that NFP declined by 105,000 in October. Meanwhile, the Unemployment Rate in the US climbed to 4.6% in November…

The Rupee on Tuesday breached the psychologically crucial 91 to the US Dollar mark to close at an all time low, weighed down by factors such as continuous selling by FPIs in the equity and debt markets, dollars getting sucked out due to the $5 billion USD/INR Buy/Sell swap, a strong greenback and India’s tariff negotiations with the US getting prolonged.The Indian currency weakened about 30 paise to close at 91.0275 per USD against previous close of 90.73. Intraday, it tested a high/low of 90.7625/ 91.08.The Rupee has depreciated 100 paise from 90 to 91/USD in just nine trading sessions.…