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United States (US) Treasury Secretary Scott Bessent said on Friday that he thinks the Chinese leadership was slightly alarmed by the global backlash to their export controls and that “everything’s ironed out in terms of the permissions, and we should see a transaction very soon.”Key QuotesChina made a real mistake by firing shots on rare earths.US and Chinese leaders had reached an “equilibrium” but warned that China would not be able to keep using its critical minerals as a coercive tool.I think the Chinese leadership were slightly alarmed by the global backlash to their export controls.There’s an agreement that, ceteris…

The Japanese Yen (JPY) steadies against the US Dollar (USD) on Friday, with USD/JPY pausing its two-day winning streak despite the Greenback’s broader strength, as renewed verbal warnings from Japanese officials revive intervention concerns.Japan’s new Finance Minister Satsuki Katayama said the government is “closely monitoring FX with a high sense of urgency,” a remark that offered the Yen some intraday support after the pair touched fresh multi-month highs on Thursday.At the time of writing, USD/JPY is trading around 154.00, holding firm near an eight-and-a-half-month high and on track for its biggest monthly gain since June.Meanwhile, the US Dollar Index (DXY),…

India’s forex reserves fell by $6.9 billion on-week to $695.53 billion for the week ended October 24, according to Reserve Bank of India (RBI) data. In the preceding week, forex reserves jumped by $4.49 billion week-on-week to $702.28 billion. Foreign currency assets (FCA)–which include investment in securities, deposits with other central banks and the BIS, and deposits with commercial banks overseas—stood at $566.54 billion, down $3.86 billion compared to last week. Expressed in dollar terms, the FCA include effect of appreciation or depreciation of non-US units like the euro, pound and yen.During the week ended October 24, gold reserves fell…

EUR/GBP trades slightly lower on Friday, around 0.8780 at the time of writing, down 0.13% on the day, reverting early daily gains, but maintaining a solid weekly uptrend of about 0.60%. The Euro continues to find support against the British Pound (GBP), which remains under pressure due to mounting concerns over the United Kingdom’s (UK) public finances, while upbeat remarks from the European Central Bank (ECB) bolster investor confidence.On Thursday, the ECB left all three key interest rates unchanged, confirming that monetary policy is now “well-calibrated.” President Christine Lagarde emphasized that the central bank is “in a good place” and…

The Canadian Dollar (CAD) remains under pressure against the US Dollar (USD) on Friday, weighed down by renewed demand for the Greenback after the Federal Reserve’s (Fed) cautious guidance tempered expectations of another rate cut this year.At the time of writing, USD/CAD is trading around 1.4009, near a one-week high after briefly dipping to a one-month low on Wednesday in the aftermath of the Bank of Canada’s (BoC) hawkish rate cut. The central bank lowered its benchmark rate by 25 basis points (bps) to 2.25% but signaled that the move could mark the end of its easing cycle.The Loonie came…

Silver (XAG/USD) trades little changed on Friday, hovering around $49 per ounce as investors digest the cautious message from the US Federal Reserve (Fed) and the recent diplomatic progress between the United States (US) and China.Fed Chair Jerome Powell’s measured tone during Wednesday’s press conference weighed on expectations for further interest rate cuts this year. Powell stated that an additional reduction in December was “not a foregone conclusion,” emphasizing that future policy decisions would depend on incoming economic data. According to the CME FedWatch tool, the chances of a 25-basis-point rate cut in December have fallen to around 67% from…

Gold (XAU/USD) treads water on Friday, struggling to extend Thursday’s advance as investors reassess the Federal Reserve’s (Fed) monetary policy outlook following this week’s interest rate cut. At the time of writing, XAU/USD is trading around $4,010, little changed on the day and poised for a second straight weekly loss.A firmer US Dollar (USD) and steady Treasury yields are capping upside attempts in Gold, as traders scale back expectations of another rate cut this year. In his post-meeting remarks, Fed Chair Jerome Powell downplayed the likelihood of a December rate cut, saying it was “not a foregone conclusion” and emphasizing…

The rupee pared intra-day losses to settle flat at 88.69 (provisional) against the American currency on Friday, as weak domestic equities and a firm US dollar in overseas markets offset the gains from lower crude oil prices.At the interbank foreign exchange market, the rupee opened at 88.60 and touched a high of 88.59 and a low of 88.78 against the greenback during the session. The local unit finally settled at 88.69 (provisional), unchanged from its previous closing level.On Thursday, the rupee crashed 47 paise to settle at 88.69 against the US dollar after the US Federal Reserve Chair Jerome Powell…

The Indian rupee fell on Friday but managed to hold above its all-time low on the back of intermittent dollar sales by state-run banks that also helped the currency end the month on a quiet note.The rupee had rallied to a peak of 87.6250 earlier this month following heavy-handed intervention by the central bank, but has since shed those gains to once again hover close to its record low of 88.80, hit in late-September.The currency ended Friday’s session slightly lower at 88.7650 and was little changed month-on-month.India’s benchmark equity indexes, the BSE Sensex and Nifty 50, were both down 0.4%…

European Central Bank (ECB) policymaker and Governor of Central Bank of Latvia, Martins Kazaks, said during European trading session that risks to inflation and growth in the Eurozone are more balanced.Additional commentsECB will move when needed but shouldn’t be jumpy.Risks to inflation and growth are more balanced.Market reactionEUR/USD trades with caution near the two-week low around 1.1560, posted on Thursday, during European trading hours. Euro FAQs The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it…