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Commerzbank’s Antje Praefcke argues that renewed tariff uncertainty under the US president is eroding long‑term confidence in the Dollar, even as upcoming US data such as ISM, ADP and NFP loom. She warns that doubts about US trade policy, fiscal balances and future Federal Reserve independence could mean stronger US growth no longer translates into sustained Dollar support.Tariffs, Fed doubts and Dollar support”With each step of reduced confidence in a stable, long-term economic and trade policy (I am leaving geopolitics out of the equation for now, but it is ultimately also part of it), I think the US president is…
The rupee fell 4 paise to 90.95 against the US dollar in early trade on Friday, weighed down by FII outflows and a fall in the domestic equity markets in morning session.However, a weaker greenback and a dip in global crude oil prices prevented sharper decline in the local unit, forex traders said.At the interbank foreign exchange, the rupee opened at 90.91 against the US dollar before slipping to 90.95, down 4 paise from its previous close.The rupee settled on a flat note at 90.91 against the US dollar on Thursday.”Despite FPIs selling dollars there was good dollar buying yesterday…
The AUD/USD pair attracts fresh buyers following the previous day’s modest pullback and holds steady above the 0.7100 mark through the Asian session on Friday. Spot prices seem poised to register gains for the sixth straight week and remain within striking distance of a three-year peak, touched earlier this month.The AUD/USD pair holds above the rising 100-period Exponential Moving Average (EMA) on the 4-hour chart, keeping the recent series of higher lows intact on the back of the Reserve Bank of Australia’s (RBA) hawkish stance. Adding to this, the Relative Strength Index at 58 stays above its midline, signalling firm…
China’s central bank has stepped in to temper the rapid rise of the yuan, announcing that it will scrap foreign exchange risk reserve requirements for certain forward contracts, a move seen as encouraging dollar buying and cooling the currency’s recent surge.The decision follows a sharp rally in the yuan, which climbed to a near three-year high against the U.S. dollar in onshore trading on Thursday. The appreciation has been driven in part by exporters rushing to convert dollar holdings after China posted a record trade surplus last year. Following the announcement, the offshore yuan weakened by around 0.2%, according to…
BNY’s Head of Markets Macro Strategy Bob Savage highlights USD/SGD as the weakest non-carry pair over the past month, with sustained net selling pressure. However, the last two sessions have seen softer outflows, suggesting momentum is turning. BNY warns SGD is at risk of an unwind into month-end after its strong February performance.SGD strength seen vulnerable into month-end”USDSGD was the worst-performing “non-carry” pair over the past month, as its monthly average flow magnitude was even higher than EURUSD.””The pair has been net sold for almost three consecutive trading weeks, but the past two sessions have also been the softest during…
The Pound Sterling (GBP) retreats over 0.11% on Thursday as the Greenback remains steady following a report that the number of Americans applying for unemployment benefits was below estimates last week, an indication of the resilience of the labor market. At the time of writing, GBP/USD trades at 1.3544 after reaching a daily high of 1.3575.Sterling eases as resilient US labor data steadies the Dollar while UK political risks lingerFinancial market sentiment worsened after Nvidia Corp reported earnings and a solid outlook. Nevertheless, the AI rally seems overextended, and market participants are seeking reassurance about the AI outlook. So far,…
Gold (XAU/USD) trades with a mild upside bias on Thursday but remains confined within this week’s trading range as markets stay cautious ahead of key geopolitical developments. At the time of writing, XAU/USD trades at $5,174 as bulls struggle to sustain gains above the $5,200 level.The sideways price action reflects a lack of conviction among traders. Ongoing tensions in the Middle East and lingering uncertainty surrounding US trade policies continue to underpin safe-haven demand, helping to contain the downside.At the same time, fading expectations of near-term Federal Reserve (Fed) interest rate cuts are acting as a mild headwind for the…
The rupee slipped 1 paisa to settle at 90.92 (provisional) against the US dollar on Thursday, weighed down by a rise in global crude oil prices and a firm greenback against major rivals.However, foreign fund inflows supported the local unit and prevented the decline, forex traders said.At the interbank foreign exchange, the rupee opened at 90.86 against the greenback and traded in a narrow range of 90.81-90.93 during the session. Eventually, it closed at 90.92 (provisional), down 1 paisa from its previous close.The rupee stayed range-bound and settled with a gain of 4 paise at 90.91 against the US dollar…
The Indian rupee closed marginally stronger on Thursday, comforted by strength in regional currencies while elevated demand to buy dollars at the daily reference rate kept gains in check.The rupee closed at 90.9050 per U.S. dollar, up slightly from its close at 90.9475 in the previous session.Dollar demand at the reference rate, elevated due to maturity of contracts in the non-deliverable forwards market, was met with decent selling interest from interbank participants, a trader at a state-run bank said.The reference rate is a benchmark used to settle contracts and often attracts concentrated dollar buying or selling.The market could be positioning…
West Texas Intermediate (WTI) Oil price remains steady after two days of losses, trading around $65.40 per barrel during the European hours on Thursday. Crude Oil prices hold steady amid ongoing United States (US)-Iran tensions that threaten potential supply disruptions.Markets are closely monitoring the third round of US-Iran nuclear talks in Geneva on Thursday. US President Donald Trump recently warned of possible military action if negotiations fail, while Iran stated that US military bases across the Middle East would be considered legitimate targets, raising concerns of a broader regional conflict.According to Reuters, analysts at ING Group noted that the outcome…