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The US Dollar Index (DXY) drops by 0.48% to trade around 98.90 on Friday at the time of writing, extending its recent weakness as global investors react to a new escalation in trade tensions between the United States (US) and China.US President Donald Trump said on his social media platform Truth Social that his administration is considering a “massive increase of tariffs” on Chinese imports, describing Beijing’s latest export restrictions on rare earths as “hostile.” Trump added that he sees “no reason” to meet Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea, suggesting…

The Euro (EUR) is showing signs of stabilization against the US Dollar (USD) on Friday, pausing a four-day losing streak as the Greenback softens. At the time of writing, EUR/USD trades near 1.1621, up around 0.50% on the day, after dipping to a two-month low on Thursday. Even with the mild rebound, the pair remains on course for its sharpest weekly drop since July, weighed by political turbulence in France.The Euro came under sustained selling pressure earlier in the week after French Prime Minister Sébastien Lecornu resigned just hours after unveiling his cabinet, making his tenure one of the shortest…

GBP/USD retreats toward 1.3280 during Friday’s US session, marking a fresh two-month low. The US Dollar (USD) remains firm, supported by increased safe-haven demand amid political uncertainty in Japan and France. The US Dollar Index (DXY) holds near Thursday’s two-month high of 99.56, limiting any rebound of the Cable.Despite rising expectations for further interest rate cuts by the Federal Reserve (Fed) before year-end, the Greenback remains in demand. According to the CME FedWatch tool, markets assign over an 80% chance of a 50-basis-point rate cut by December. Federal Open Market Committee (FOMC) members John Williams and Mary Daly acknowledged that the…

| Photo Credit: JOSE LUIS GONZALEZ India’s forex reserves fell by USD 276 million to USD 699.96 billion during the week ended October 3, according to RBI data. In the previous reporting week, India’s forex reserves had dropped by USD 2.334 billion to USD 700.236 billion. For the week ended October 3, foreign currency assets, a major component of the reserves, decreased by USD 4.049 billion to USD 577.708 billion, the data released on Friday showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen…

USD is expected to trade in a range between 7.1200 and 7.1550, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note. No increase in downward momentum24-HOUR VIEW: “When USD was at 7.1475 yesterday, we noted that ‘the underlying tone has softened.’ However, we were of the view that ‘any decline is likely part of a lower range of 7.1380/7.1520 rather than a sustained decline.’ We did not expect the mild downward momentum to strengthen so quickly, as USD fell to a low of 7.1242, before rebounding to close at 7.1377 (-0.17%). The rebound from oversold conditions suggests that…

The rupee appreciated 10 paise to close at 88.69 (provisional) against the US dollar on Friday, on strength in the domestic markets and broad weakness in crude oil prices. Forex traders said the rupee gained on strong domestic markets and overnight decline in commodity prices. Intervention by the central bank also supported the domestic currency. However, a strong US dollar capped sharp gains, they added.At the interbank foreign exchange, the rupee opened at 88.80 and traded in the range of 88.50-88.80 before settling at 88.69 (provisional), 10 paise higher than its previous close. On Thursday, the rupee closed at 88.79…

EUR/USD is posting minor gains on Friday, trading at 1.1575 at the time of writing after hitting fresh two-month lows near 1.1540 the previous day. The common currency has lost over 1.4% so far this week and is on track for its worst weekly performance this year, undermined by the uncertain political and fiscal situation in France. The French Prime Minister (PM), Sébastien Lecornu, resigned unexpectedly earlier this week, and the market is awaiting President Emmanuel Macron to appoint a new one. The next PM will face the challenging task of approving a tightening budget, amid fierce opposition within the…

The rupee now looks undervalued both against the dollar and on a trade-weighted basis | Photo Credit: FRANCIS MASCARENHAS The Indian rupee’s fall to an all-time low has split analysts on what comes next for the South Asian currency. While some predict further weakness looming, strained by sluggish trade and portfolio flows, others reckon that the worst may be over as valuations turn supportive.The diverging views underscore the cross-currents affecting the Indian economy, which is pressured by punitive trade tariffs imposed by the U.S. and a lull in foreign inflows, while the domestic economy remains resilient.Goldman Sachs, in a note…

The USD/JPY outlook remains broadly bullish with mild pullbacks amid intervention fears. The US dollar gains safe-haven demand due to political chaos in Japan and Europe. Investors are eying consumer sentiment data today for more impetus. The US dollar trades mixed against the Japanese yen on Friday after marking a fresh eight-month top above the 153.00 level. FOMC September meeting minutes revealed that most policymakers urged a 25 bps rate cut with a cautious but dovish tone. Markets interpreted this as a confirmation for further easing before year-end, putting pressure on the US dollar. –Are you interested to learn more…

The rupee traded almost flat at 88.78 in the early session on Friday, hovering near all-time lows against the US dollar due to a stronger greenback in the overseas markets. Forex traders said the rupee is expected to trade in a narrow range with a chance of breaking the all-time closing low level of 88.80 in the absence of RBI intervention. At the interbank foreign exchange market, the rupee opened lower at 88.80 but soon recovered to touch 88.78 against the US dollar, registering a gain of 1 paise from its previous close. On Thursday, the rupee closed at 88.79…