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Traders said the RBI intervened across multiple currency markets, including spot, forwards, futures and non-deliverable forwards | Photo Credit: ANUSHREE FADNAVIS India’s central bank has mounted an aggressive defence of the rupee this week, deploying an estimated $12 billion to contain the fallout from an escalating West Asia war that has pummelled markets and pushed the Asian currency to an all-time low, according to seven bankers.The figure is the median of estimates bankers shared with Reuters, with the projections ranging from $9 billion to more than $15 billion.The scale of the intervention underscores the challenge the Reserve Bank of India…
At the interbank foreign exchange market, the rupee opened at its previous session’s closing level of 91.64 against the greenback and moved in a narrow range between an intra-day high of 91.54 and a low of 91.78 during the session. The rupee stayed range-bound throughout the session on Friday and ended 6 paise lower at 91.70 (provisional) against the US dollar, resisting pressure from inflated crude oil prices and suspected RBI intervention.According to forex experts, heavy selling in domestic equities and withdrawal of foreign funds further dragged the rupee down.However, they said the depreciation was capped following the US administration’s…
The Indian rupee ended a tad lower on Friday and logged its worst weekly fall in over a month as the U.S.-Israel war on Iran sparked a surge in oil prices, jolting global markets and sparking a dash for safe-haven assets.The rupee hit a record low of 92.3025 per dollar earlier in the week but recovered sharply on the back of market interventions by the Reserve Bank of India. The currency ended at 91.74 on Friday, down 0.8% on the week.Bankers said the central bank was active across spot, futures, forwards and non-deliverable forward markets, estimating it deployed about $12…
India’s central bank has mounted an aggressive defence of the rupee this week, deploying an estimated $12 billion to contain the fallout from an escalating Middle East war that has pummelled markets and pushed the Asian currency to an all-time low, according to seven bankers. The figure is the median of estimates bankers shared with Reuters, with the projections ranging from $9 billion to more than $15 billion. The scale of the intervention underscores the challenge the Reserve Bank of India faces in containing volatility triggered by the Middle East conflict that has entered its seventh day. The conflict has…
People’s Bank of China (PBoC) Governor Pan Gongsheng said during European trading hours on Friday that monetary policy adjustments will be based on economic operations.RemarksSocial financing conditions are at loose conditions now.Central bank will implement appropriately monetary policy this year.Will flexibly use various monetary policy tools including interest rates, RRR cuts.Will guide adjustments in interest rate levels based economic operations.Structural policy tools will docus on expanding domestic demand, tech innovation.Will curb involution-style competition in some industries.China has no intention to, not necessary to use exchange rate to gain trade competitiveness.US, Israeli attacks on Iran led to spike in risk aversion…
The rupee stayed firm and gained 2 paise to 91.62 against the US dollar on Friday after the US announced a 30-day waiver for Indian refiners to purchase Russian oil, easing pressure on the global energy flow amid the ongoing war in West Asia.Forex traders said that the negative domestic equity markets and withdrawal of foreign funds resisted the rupee’s upward move despite a retreating American currency.Amid the escalating war involving the US, Israel and Iran, the American administration has announced a temporary 30-day waiver to allow Indian refiners to purchase Russian oil.Treasury Secretary Scott Bessent on Thursday said that…
Gold price (XAU/USD) recovers its recent losses from the previous session on Friday. The yellow metal advances as the broader precious metals market rebounds on safe-haven demand. However, the yellow metal is on track for its first weekly decline in five weeks as escalating Middle East tensions push oil prices higher, fueling inflation concerns and reducing bets on Federal Reserve rate cuts.The dollar-denominated Gold faces challenges as the US Dollar (USD) strengthens, as Federal Reserve (Fed) officials continue to consider the possibility of further rate hikes if inflation remains above target. It is worth noting that a weaker US Dollar…
US Interior Secretary Doug Burgum said that the US President Donald Trump administration is weighing a range of options for addressing the spike in oil and gasoline prices amid the war in Iran, Bloomberg reported on Friday.Trump huddled with Burgum and other top advisers to consider a range of possibilities Tuesday before announcing plans to provide insurance guarantees and naval escorts to ensure safe passage for oil tankers and other vessels through the Strait of Hormuz.Other options include releasing crude from the country’s emergency oil reserve, potentially in coordination with other nations to maximize effect. However, administration representatives have not…
Nordea’s Chief Analyst Jan von Gerich expects the ECB to stay on hold for now while closely monitoring how the Middle East conflict affects Euro-area growth and inflation. He argues that higher and prolonged energy prices, tight labour markets and sticky services inflation raise upside risks to ECB rates. Nordea still forecasts the first rate hike in the second half of next year, but sees rising risk of an earlier move.ECB vigilance as energy risks build”The ECB will remain on hold for now, but it will carefully assess, what consequences the conflict in the Middle East will have on the…
Rupee made a smart recovery on Thursday after tanking to close at a record low the previous day on heavy RBI intervention in the forex market.Rupee closed 55 paise stronger at 91.60 per US Dollar against previous close 92.15. The Indian currency had closed at an all-time low on Wednesday amid concerns over the negative impact that the spike in global crude oil prices could have on India’s current account balance.Despite the Rupee strengthening against the Dollar, it continues to be remain under pressure due to ripple impact from the West Asia war. If the war lingers, oil prices could…