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The rupee pared its initial losses and settled for the day in the positive territory, up 17 paise at 89.88 (provisional) against the US dollar on Tuesday, as American currency and crude oil prices retreated from their elevated levels. Forex traders said the weakness of the US dollar in the overseas market, amid expectations of a US Fed rate cut in December, supported the rupee at lower levels. However, a negative trend in domestic equities and foreign fund outflows weighed on investor sentiment, limiting the local unit’s appreciation. Moreover, investors are in a wait-and-watch mode, and market participants are awaiting…

Gold (XAU/USD) trades with a negative bias for the third straight day and drops to a one-week low, around the $4,170 region, during the early European session on Tuesday. The downtick lacks any obvious fundamental catalyst and could be attributed to some repositioning trade ahead of the highly anticipated FOMC policy meeting, starting later today. Investors will keep a close eye on updated economic projections, including the so-called dot plot, and Federal Reserve (Fed) Chair Jerome Powell’s post-meeting press conference for cues about the future rate-cut path. This, in turn, will play a key role in influencing the US Dollar…

On Monday, the rupee settled at 90.05 against the US dollar | Photo Credit: Anjana C _11700@Chennai The rupee depreciated 10 paise to 90.15 against the US dollar in early trade on Tuesday, as dollar demand from corporates, importers and foreign portfolio investors dented investors’ sentiments.Forex traders said investors are in a wait and watch mode and market participants are waiting for clarity from the US Fed before taking decisive positions.At the interbank foreign exchange, the rupee opened at 90.15 against the US dollar, down 10 paise from its previous close.On Monday, the rupee settled at 90.05 against the US…

The AUD/NZD pair falls sharply to near 1.1440 as the Reserve Bank of Australia (RBA) has kept its Official Cash Rate (OCR) steady at 3.6%. The RBA was expected to do so as inflation in Australia grew at a faster pace in the third quarter of the year. Australian Dollar Price Today The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the Swiss Franc. USDEURGBPJPYCADAUDNZDCHFUSD-0.08%-0.03%-0.05%-0.05%0.07%-0.08%-0.11%EUR0.08%0.04%0.02%0.02%0.14%-0.01%-0.03%GBP0.03%-0.04%0.00%-0.02%0.09%-0.05%-0.07%JPY0.05%-0.02%0.00%0.00%0.11%-0.04%-0.06%CAD0.05%-0.02%0.02%-0.00%0.11%-0.04%-0.05%AUD-0.07%-0.14%-0.09%-0.11%-0.11%-0.14%-0.16%NZD0.08%0.00%0.05%0.04%0.04%0.14%-0.02%CHF0.11%0.03%0.07%0.06%0.05%0.16%0.02% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while…

The Reserve Bank of Australia (RBA) is on track to leave the Official Cash Rate (OCR) unadjusted at 3.6%, following the conclusion of its December monetary policy meeting on Tuesday.The decision will be announced at 03:30 GMT, accompanied by the Monetary Policy Statement (MPS). RBA Governor Michele Bullock’s press conference will follow at 04:30 GMT.The language in the MPS and Bullock’s press conference will likely ramp up volatility around the Australian Dollar (AUD).Will RBA hint at a hawkish pivot?Since the November monetary policy meeting, inflation has surprised to the upside and economic growth has regained momentum.Both indicators justify the expected…

NZD/USD declines on Monday, trading around 0.5770 at the time of writing, down 0.10% on the day. After briefly touching 0.5790, the pair erased its earlier gains as market sentiment turned more cautious.China’s trade surplus largely exceeded expectations in November, reaching $111.68 billion. This result, driven by a 5.9% YoY increase in exports, highlights the resilience of Chinese external demand. However, the improvement was not enough to sustain the New Zealand Dollar’s (NZD) upward momentum, as markets trimmed risk exposure in the absence of additional catalysts.The US Dollar (USD) remains indecisive ahead of Wednesday’s Federal Reserve (Fed) meeting. Markets are…

India’s weakening currency is triggering a broad, five-channel macroeconomic shock that could reshape everything from corporate sentiment to fiscal accounts, Bank of America Global Research said in a report Monday, arguing that the rupee’s slide “can and will impact various macroeconomic variables in India, if it persists.”The warning lands as the rupee closed at 90.07 per U.S. dollar, slipping 0.1% on the day and cementing a roughly 5% drop this year, the steepest decline among major Asian currencies.5 channels of impactBofA said the rupee’s weakness, nearly 7% over the past year and even larger in real effective terms, is among…

European Central Bank (ECB) policymaker Peter Kazimir said in the European session on Monday that he doesn’t see any reason of monetary policy adjustment in the policy meeting this month.Additional remarksI see no reason to change rates in the coming months, definitely not in December.FX pass through to prices may not be as strong as expected.Remaining vigilant to upside risks has become more important.Overengineering policy around small inflation deviations would introduce unnecessary policy uncertainty.Market reactionEUR/USD trades flat around 1.1660 as of writing. The impact of ECB Kazimir’s comments appears to be insignificant on the Euro (EUR). ECB FAQs The European…

The rupee depreciated 14 paise to close at 90.09 (provisional) against the US dollar on Monday, as elevated crude oil prices and persistent foreign fund outflows dented investor sentiments. Forex traders said multiple pressures, such as sustained importer demand for the American currency, foreign fund outflows from equities, and lingering uncertainty over the India-US trade deal, are keeping investor sentiment fragile. At the interbank foreign exchange market, the rupee opened at 90.07, then gave up ground and fell to an intra-day low of 90.26 against the US dollar, down 31 paise from its previous close. At the end of the…

The Indian rupee ended weaker on Monday as a fall in local equities and marginal slip in Asian currencies weighed on the currency, while traders remained cautious on speculative positions as the rupee settles into a fresh trading range.The local currency closed at 90.07 per U.S. dollar, down 0.1% on the day.Likely portfolio outflows from local stocks troubled the rupee on the day, traders said, while a pick up in exporter hedging and intermittent dollar sales from state-run banks helped keep a lid on its decline.India’s benchmark equity indexes, the BSE Sensex and Nifty 50 fell about 0.7% and 0.9%,…