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The Indian rupee logged its biggest one-day gain in a month on Thursday after the Reserve Bank of India stepped in aggressively to shore up the currency, with bankers expecting the central bank to stay on guard as geopolitical risks persist.The rupee touched a peak of 91.4125 in before ending the day at 91.60 per dollar, up 0.6% on the day.India’s benchmark indexes rose 1% and most Asian stocks were also higher while currencies traded mixed.Traders pointed to aggressive dollar sales by state-run banks, which lifted the rupee after it fell to a record low of 92.3025 on Wednesday.Choppy moves…
Commerzbank’s Michael Pfister revisits international trade theory to explain why higher Oil prices and the US status as a net Oil exporter are supportive for the Dollar against the Euro. He argues that improved US terms of trade, slower price adjustment and central bank inflation targets mean the nominal EUR/USD exchange rate bears most of the adjustment, with scope for a rebound if Oil prices fall.Oil shock and Dollar trade advantage”It is likely that there will be agreement on the fact that the US is now a net oil exporter, while the euro area has to import oil on a…
The Indian rupee breached the 92/$1 mark for the first time on Wednesday to a record low, mirroring the steepest weekly climb in the fear gauge for equity assets since the initial Covid shutdowns six years ago, as the West Asian war disrupted supplies of oil and industrial gases and compelled investors to buy safe-haven dollar assets.The rupee fell 68 paise from Monday’s closing level of 91.47 to a dollar – at 92.15 – and its losses would have been even steeper in the absence of evident, late-afternoon interventions from the central bank, traders said. “Selling of dollars by the…
Rupee recovered from its lowest level and gained 48 paise to trade at 91.57 against the US dollar in early trade on Thursday, tracking positive momentum in domestic equity markets. However, higher crude oil prices, a strengthening American currency and intense selling of Indian equities by foreign investors amid escalating tension in the Middle East kept the local unit under pressure, forex analysts said. At the interbank foreign exchange market, the rupee opened at 92.16 and touched a high of 91.30 before trading at 91.57 against the American currency, registering a gain of 48 paise from its previous closing level.The…
The Reserve Bank of Indian likely stepped into the foreign exchange market aggressively on Thursday, three traders told Reuters, likely aimed at shoring up the rupee, which fell to a record low in the previous session.The rupee was on track to open around the 92.10 per dollar level on Thursday, but minutes before the local spot market opened at 9:00 a.m. IST, it rallied sharply on the interbank order matching system to about 91.40 per dollar. Traders cited dollar sales from at least three state-run banks, most likely on behalf of the RBI. Source
Gold price (XAU/USD) extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East. The Iran conflict has entered its sixth day with US and Israeli strikes across Iranian territory and widespread Iranian missile and drone retaliation across the Middle East, including attacks on regional targets and military sites, prolonging the crisis and its impact.A US submarine reportedly sank an Iranian warship off the coast of Sri Lanka, escalating hostilities. US Defense Secretary Pete Hegseth called it the “first such attack on an enemy since World War II.” The…
GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average (EMA), with this week’s one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.Chancellor Rachel Reeves delivered her Spring Statement earlier this week, with the Office for Budget Responsibility (OBR) cutting its 2026 growth forecast to 1.1% from 1.4%, citing weaker-than-expected activity in late 2025 and rising unemployment. The OBR acknowledged…
The Pound Sterling (GBP) recovers some ground versus the US Dollar (USD) on Wednesday, though tensions in the Middle East remain high, pushing macroeconomic data releases into the backseat. A better-than-expected employment reading in the US was mainly ignored by traders with their sights set on Friday’s Nonfarm Payrolls report. At the time of writing, GBP/USD trades at 1.3361.Sterling steadies despite Middle East tensions, with traders focused on Friday’s jobs reportDuring the European session, GBP/USD edged towards its daily high of 1.3403 amid relief at a possible de-escalation of the conflict between the US and Iran. Nevertheless, Reuters reported that…
The Rupee’s weakness also comes in the backdrop of the US Dollar (USD) gaining strength against other currencies as global investors are piling into Dollar assets due to risk-off sentiments | Photo Credit: KSL The Rupee continued to feel the reverberations of the war in West Asia, weakening 120 paise against the US Dollar in the last two trading sessions amid concerns over the negative impact that the spike in global crude oil prices could have on India’s current account balance and inflation.The rupee on Wednesday sank 68 paise to close at an all-time low of 92.15 per US Dollar…
TD Securities’ Global Strategy Team notes that UK Chancellor Reeves delivered a cautious Spring Statement with no major new policies. Updated OBR projections show slightly slower UK growth in 2026 but stronger growth thereafter, alongside lower inflation forecasts. The team highlights that reduced financing needs and remaining fiscal space could be used if geopolitical risks intensify or policy is loosened later.Spring Statement and OBR projections”As largely expected, Chancellor Reeves played it safe in her fiscal forecast update, with no material new policies announced. The OBR projections showed more headroom by 2029-30, at £23.6bn (vs £21.7bn prior).””Macro projections were updated as…