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RBI delivers the secret instructions to dedicated rupee traders in soundproof rooms.Some days the orders focus on size: sell $100 million every minute. Other times, it’s about market levels: sell everything until the target is hit. And on certain days, the instruction is simply to step aside.The hard-to-predict intervention strategy is part of the Reserve Bank of India’s increasingly high-stakes attempt to manage the rupee as it weakens to all-time lows.Interviews with bankers, traders and former central bank officials — some of whom described on condition of anonymity how the RBI’s closely guarded interventions work — suggest volatility is likely…

The USD/CAD pair trades weakly near its 11-week low around 1.3800 during the Asian trading session on Monday. The Loonie pair fell drastically on Friday after the release of the Canadian labor market report for November, which showed that the Unemployment Rate dropped significantly to 6.5% from 6.9% in October due to a significant increase in part-time workers.Full-time jobs created by the Canadian economy in November were 53.6K, slightly lower than 66.6K in October, while economists anticipated that employers would have shed 5K jobs.Strong Canadian employment data has diminished hopes of an interest rate cut by the Bank of Canada…

The USD/JPY pair loses ground to near 155.25 during the early Asian session on Monday. The US Dollar (USD) weakens against the Japanese Yen (JPY) as traders brace for the Federal Reserve (Fed) meeting this week, where policymakers are widely expected to cut interest rates. The final reading of Japan’s Gross Domestic Product (GDP) report for the third quarter will be released later on Monday. Traders increased their expectation that the US central bank will deliver a 25 basis points (bps) rate reduction at its December meeting. According to the CME FedWatch tool, financial markets are currently pricing in nearly a 90% chance…

So far in 2025, the forex kitty has cumulatively increased by about $48 billion, data showed. | Photo Credit: ANINDITO MUKHERJEE India’s foreign exchange reserves declined by $1.877 billion in the week that ended November 28 to $686.227 billion, according to the latest weekly data released by the Reserve Bank of India (RBI).In the last reporting week (November 21), forex reserves declined by $4.472 billion to $688.104 billion, driven by a slump in both foreign currency assets and gold reserves.Over the past many weeks, the forex kitty has been largely in a downtrend.RBI’s ‘Weekly Statistical Supplement’ data showed that India’s…

On Friday, the EUR/USD remained steady, poised to finish the week with gains of 0.39%, trade subsided capped by the 1.1650 figure as traders eyed the Federal Reserve’s decision next week.Euro holds gains; US inflation and sentiment data shape market outlookEconomic data boosted the US Dollar, which trimmed some of its previous losses against the Euro. Inflation data in the US was mostly aligned with estimates, while Consumer Sentiment revealed by the University of Michigan (UoM) showed signs of improvement.In the Eurozone, growth figures for the bloc showed the economy’s resilience with monthly data exceeding forecast. European Central Bank (ECB)…

The Canadian Dollar (CAD) found room on the high side on Friday, climbing nearly 0.9% and locking in a second straight week of firm gains for the Loonie. The CAD has gained nearly 2.2% bottom-to-top against the US Dollar (USD) since hitting seven-month lows in early November.Canadian labor data came in broadly stronger than expected in November, with the Canadian economy adding far more jobs than expected. The Canadian Unemployment Rate tumbled to its lowest level since August 2024. US Personal Consumption Expenditures Price Index (PCE) inflation data from September also came in slightly better than expected, helping to keep broad-market…

The Dow Jones Industrial Average (DJIA) made slim gains on Friday, climbing another 150 points and ending a moderately bullish week near the 48,000 handle. US Personal Consumption Expenditures Price Index (PCE) data, despite being from September, helped bolster market confidence that the Federal Reserve (Fed) will be delivering a third straight interest rate cut on December 10.The Standard & Poor’s 500 (SP500) also climbed around 0.3% on Friday, putting the broad-market index on pace to challenge all-time highs.PCE inflation cools slightly, bolsters Fed rate cut hopesCore PCE inflation ticked down to 2.8% YoY in September, while the monthly figure…

Gold (XAU/USD) advances during the North American session on Friday, poised to finish the week almost flat above the $4,200 figure as market participants brace for the Federal Reserve (Fed) monetary policy meeting next week. At the time of writing, XAU/USD trades at $4,216 after bouncing off daily highs of $4,259.XAU/USD trades flat; markets eye Federal Reserve’s expected rate cutThe week ends with the release of the Fed’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index for September, which remained virtually unchanged, slightly closer to the 3% threshold than the Fed’s 2% goal. Although the print would…

The Australian Dollar (AUD) extends its advance against the US Dollar (USD) on Friday, with AUD/USD climbing to its highest level since September 18 as traders are almost certain the Reserve Bank of Australia (RBA) will leave interest rates unchanged on December 9.At the time of writing, AUD/USD is trading around 0.6637, on track for a second straight weekly gain.The fundamental backdrop remains supportive for the Aussie, with markets also beginning to factor in the possibility that the RBA could revisit tightening next year if domestic conditions stay firm.This stands in sharp contrast to the Federal Reserve’s (Fed) dovish outlook,…

Gold (XAU/USD) erases earlier gains on Friday as a firmer US Dollar (USD) tempers bullish momentum, with the metal oscillating within the familiar range that has defined price action this week. At the time of writing, XAU/USD is trading near $4,215, with dovish Federal Reserve (Fed) expectations continuing to offer a supportive backdrop, helping limit downside despite the intraday pullback.The US Dollar bounced off earlier lows after the delayed US Personal Consumption Expenditures (PCE) report for September offered no surprises. Core PCE, the Fed’s preferred gauge, rose 0.2% MoM, matching expectations, while the annual rate eased to 2.8% from 2.9%.Headline…