Author: admin

The Indian rupee slipped to a record low on Thursday, deepening its slide past the 90 per dollar mark as the absence of a trade deal with the U.S. continued to weigh and corporate dollar outflows added to the pressure.The rupee weakened to 90.4675 against the U.S. dollar, eclipsing its previous all-time low of 90.42 hit on December 4.On Thursday, the central bank likely intervened to help the rupee avert steeper losses, five traders told Reuters.One of the traders characterised the central bank’s intervention as mild and likely intend to slow the rupee’s fall instead of holding it at a…

Investors watching the rupee weaken past 90 to the dollar have a new marker to assess: Goldman Sachs believes the currency’s worst phase of underperformance is largely behind it, even as India’s external balances remain under strain and tariff uncertainty clouds the outlook. The brokerage argued that while flows have deteriorated meaningfully, India’s underlying external metrics still compare favourably with past stress episodes, offering a more tempered reading of the rupee’s slide than market sentiment suggests.Goldman Sachs attributed the rupee’s slide, including last week’s breach of 90 and its roughly 5% year-to-date depreciation, to weakening balance-of-payments dynamics and “reduced RBI…

The Japanese Yen (JPY) stalls its intraday pullback against the rebounding US Dollar (USD) and trades with a mild positive bias during the first half of the European session on Thursday. This marks the second straight day of the uptick and is sponsored by the growing acceptance of an imminent interest rate hike by the Bank of Japan (BoJ). This marks a significant divergence compared to dovish US Federal Reserve (Fed) expectations, which caps the attempted USD recovery and acts as a headwind for the USD/JPY pair.Meanwhile, expanded fiscal spending under Prime Minister Sanae Takaichi’s administration has exacerbated concerns about…

The Indian rupee weakened on Thursday, weighed down by outflows tied to near-term dollar payments by local corporates, which offset the positive impulse from the Federal Reserve’s rate cut and less-hawkish-than-anticipated commentary. The rupee weakened nearly 0.3% to 90.21 against the U.S. dollar, as of 10:30 a.m. IST. A sharply divided U.S. Fed cut interest rates on Wednesday but signalled borrowing costs are unlikely to drop further in the near term.Asian currencies were trading mixed on Thursday, while the dollar index recouped some losses after dropping to a near two-month low following the Fed’s rate decision. Weakness in the greenback…

The rupee depreciated 17 paise to 90.11 against the US dollar in early trade on Thursday as prevailing risk-averse market sentiment, compounded by a high US dollar demand from importers, dented investor sentiments. Forex traders said the rupee is likely to trade with a negative bias on muted domestic markets and sustained foreign fund outflows. Moreover, investors are also awaiting cues from the US-India trade talks, which could boost the rupee in the coming days. At the interbank foreign exchange, the rupee opened at 89.95 against the US dollar, then lost ground and fell to 90.11 against the American currency,…

Silver Price (XAG/USD) retraces to near $62.00 during the Asian trading session on Thursday after posting a fresh all-time high at $62.87 earlier in the day. The white metal’s rally hits a temporary roadblock, while its outlook remain firm as the Federal Reserve (Fed) keeps the door open for further monetary easing after reducing interest rates by 25 basis points (bps) to 3.50%-3.75% on Wednesday.In the policy meeting, the Fed stated that extent and timing of additional adjustments to the target range for Federal funds rates will be dependent on incoming data. On the contrary, market participants anticipated that the…

GBP/USD punched a fresh hole into seven-week highs on Wednesday, rising back into the 1.3400 neighborhood after the Federal Reserve (Fed) delivered a widely expected third straight interest rate cut. Fed Chair Jerome Powell gave a particularly cautious showing, hinting that the Fed could be poised for another extended “wait and see” period. Global markets largely brushed off the Fed head’s warnings, and rate markets are already pricing in a faster pace of rate cuts over the next two years than the Fed itself expects.Although the Fed projected only one cut for next year, Chair Jerome Powell signaled that rate…

Governor Tiff Macklem took questions from reporters, offering more detail on the central bank’s thinking. His remarks followed a widely expected decision to leave the policy rate unchanged at 2.25%.BoC press conference highlightsBusinesses are careful about hiring and investment plans.Recent jobs data hasn’t changed our economic outlook.Impact of the federal budget would depend on the speed and effectiveness of execution.The federal budget was not adding a lot of additional inflationary pressures.Markets could count on decisions being taken one at a time.Markets would be assessing data relative to their outlook.StatsCan had a very tough job.What we don’t want is prices coming…

The Pound Sterling (GBP) trades 0.16% higher to near 1.3320 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair gains as the US Dollar drops slightly amid caution ahead of the Federal Reserve’s (Fed) monetary policy announcement at 19:00 GMT.At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is down 0.1% around 99.10.The US Dollar has come under pressure as the Fed is almost certain to cut interest rates by 25 basis points (bps) to 3.50%-3.75%. According to the CME FedWatch tool, the probability…

The rupee depreciated 9 paise to close at 89.96 (provisional) against the US dollar on Wednesday, tracking a negative trend in domestic equities and sustained foreign fund outflows. Forex traders said investors are in a wait-and-watch mode, awaiting clarity from the US Federal Reserve before taking decisive positions. Investors are also awaiting cues from the US-India trade talks, which could boost the rupee in the coming days. At the interbank foreign exchange market, the rupee opened at 90.00, then fell to an intra-day low of 90.10 against the US dollar and finally settled for the day at 89.96 (provisional), down…