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The rupee fell to a fresh low Friday amid concerns over rising crude oil price that stayed above $100 a barrel, its impact on inflation and capital flows.The local currency closed at 92.46 against the dollar after hitting 92.49 intraday-both all-time lows -mirroring the trend across Asian currency markets. The previous record low was 92.36 hit on Thursday.For the week, the rupee closed 0.7% lower. It weakened for the second consecutive week as geopolitical worries weighed.”The rupee will remain under pressure till we see any real sign of de-escalation in the Middle East crisis,” said KN Dey, a currency risk…
India’s foreign exchange reserves fell sharply in the week ended March 6, reflecting increased currency market volatility and valuation changes amid global geopolitical tensions.The country’s total reserves declined by $11.68 billion to $716.8 billion, down from $728.4 billion in the previous week ended February 27. The drop was driven primarily by a fall in foreign currency assets and a decline in gold holdings.The movement in reserves comes at a time when the Indian rupee has been experiencing heightened volatility, with the currency recently touching record lows against the US dollar. The pressure on the rupee has been partly linked to…
US President Donald Trump said on Saturday that the US struck military targets at a strategic Iranian outpost in the Persian Gulf and warned it could hit oil infrastructure next if Tehran keeps disrupting energy flows in the Strait of Hormuz, intensifying the two-week conflict in the region.Trump noted in his post on Truth Social: “Moments ago, at my direction, the United States Central Command executed one of the most powerful bombing raids in the History of the Middle East, and totally obliterated every MILITARY target in Iran’s crown jewel, Kharg Island.” “Our Weapons are the most powerful and sophisticated that…
The Euro finalized the week posting losses of over 1.74% against the Greenback and 0.84% in the day. The EUR/USD posted four bearish days after falling below the 200-day Simple Moving Average (SMA) at 1.1672, turning the pair bearishly biased. At the time of writing, the pair trades at 1.1414.EUR/USD Price Forecast: Technical OutlookWeekly analysisThe EUR/USD weekly chart shows the pair is dipping below 1.1450, opening the door to further downside. Momentum is bearish as the Relative Strength Index (RSI) turned negative three weeks ago, after falling below the 50-neutral level.Hence, the most likely scenario for EUR/USD is to extend…
An article of the Wall Street Journal mentioned that a Federal Judge threw out a pair of subpoenas that the Justice Department issued to the Federal Reserve Chair Jerome Powell.The US District Judge James Boasberg, in a decision unsealed Friday, ruled the subpoenas were improper, a blow to the US Attorney Jeanine Pirro’s criminal investigation versus Powell.Pirro, a longtime Trump ally, began an investigation into whether Powell gave false testimony before the Congress last summer about the Federal Reserve’s renovation project. Powell responded publicly on January 11, saying the probe was a pretext for Trump’s continued pressure on the Fed to…
Gold price loses some 0.70% on Friday. It seems poised to end the week with losses of more than 2% as the Greenback remains the choice for safety amid the Middle East conflict, which has increased investors’ angst over a reacceleration of inflation. Also, a softer-than-expected reading of US growth data increased the chances of a rate cut in 226.Bullion slips below $5,050 as rising yields, Middle East tensions boost demand for the US DollarThe XAU/USD trades at $5032 after reaching a daily high of $5,128. The US Dollar Index (DXY), which tracks the performance of the American currency against…
OCBC strategists Sim Moh Siong and Christopher Wong highlight that USD/KRW has pushed toward 1,495, reflecting KRW’s high-beta nature during geopolitical stress and energy price spikes. With bullish momentum intact and RSI rising, risks are skewed to the upside, with resistance at 1,500 and 1,510 and support at 1,470, though policymakers’ reassurances and any conflict resolution could slow depreciation and eventually trigger a turnaround.Upside skew while policymakers vigilant”The KRW was among the worst performers, with USDKRW pushing toward 1495 at one point overnight, underscoring the KRW’s high-beta characteristics during periods of geopolitical stress and energy price spikes.””Bullish momentum on daily…
The US Dollar (USD) is ending the week on a firmer stance as the US/Israeli war against Iran closes in on two weeks. Iran’s closure of the Strait of Hormuz has spiked Oil prices, boosting inflation risks and prompting investors to hide in safe-haven currencies like the Greenback. The escalating conflict in the Middle East continues to dominate market sentiment after Iran targeted oil tankers near the Strait of Hormuz this week, disrupting supply in one of the world’s most critical energy corridors.The US Dollar Index (DXY) crossed the 100.00 mark and is now trading near 100.30 after four days…
Commerzbank’s Senior Economist Dr. Henry Hao expects upcoming China data to confirm a structural divergence: Industrial Production around 5.5% year-on-year, supported by a 21.8% export surge in green tech, versus modest 3.0% retail sales and subdued Fixed-Asset Investment near 1.5%. He sees infrastructure-led support only materialising from Q2 as record bond issuance is deployed.Exports drive growth as demand lags”The upcoming release is likely to confirm that China’s industrial sector remains the primary driver of the economy. We forecast Industrial Production (IP) to grow by 5.5% yoy.””The disconnect between supply and demand is expected to persist, with retail sales forecast at…
The rupee fell to a fresh closing low Friday amid concerns over rising crude oil price that stayed above $100 a barrel, its impact on inflation and capital flows.The local currency ended at 92.46 against the dollar, after hitting the intra-day low of 92.49, mirroring the trend across Asian currency markets. The previous all-time low was 92.36, recorded on Thursday. For the week, the rupee closed 0.7% lower.The rupee weakened for the second consecutive week, as geopolitical worries weighed on the currency.”The rupee will remain under pressure till we see any real sign of de-escalation in the Middle East crisis,”…