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The Indian rupee at Wednesday’s open is unlikely to take advantage of the decline in the dollar, which was triggered by rising expectations of a US rate cut next month, with traders pointing to the currency’s inability to sustain the previous session’s brief rally.The 1-month non-deliverable forward indicated the rupee will open flat-to-slightly higher versus the US dollar. It settled at 89.22 on Tuesday.The rupee briefly strengthened past the 89 mark on Tuesday, only to be forced back by persistent dollar demand. Bankers said that dollar demand, largely from importers and in the offshore market, kicked in and blunted the…

The Reserve Bank of New Zealand (RBNZ) is expected to cut the Official Cash Rate (OCR) to 2.25% from 2.5%, following the conclusion of the November monetary policy meeting on Wednesday.The decision will be announced at 01:00 GMT, accompanied by the Monetary Policy Statement (MPS) and followed by RBNZ Governor Christian Hawkesby’s press conference at 02:00 GMT.The New Zealand Dollar (NZD) will likely experience a big reaction to the central bank’s policy announcements.  What to expect from the RBNZ interest rate decision?       Following a standard 25-basis-point (bps) rate cut in August and a surprise 50-bps move in October, the RBNZ is expected…

Gold (XAU/USD) holds firm on Tuesday as traders price a greater likelihood of a Federal Reserve (Fed) interest rate cut in December following dovish-leaning remarks from policymakers. At the time of writing, XAU/USD is little changed around $4,130, after climbing to an over one-week high during the Asian session.The latest leg higher in Gold was primarily driven by mounting rate-cut expectations, and the delayed US data released on Tuesday added to those expectations. Elsewhere, markets are also keeping an eye on developments surrounding the ongoing Russia-Ukraine peace talks aimed at ending the conflict. With geopolitical risks still in play and…

New diplomatic efforts to end the war in Ukraine have been putting pressure on Oil prices since the end of last week, Commerzbank’s commodity analyst Carsten Fritsch notes. US-Ukraine agreement sparks market uncertainty”Over the weekend, the US and Ukraine reached an agreement in Geneva on a plan to end the war, which differs in some respects from the 28-point plan previously negotiated with Russia. The details are not yet known. It is also unclear whether Russia will agree to this plan. The Kremlin has already rejected a separate proposal from the EU, sowing doubts about a solution and causing Oil…

The rupee pared initial gains and settled 4 paise lower at 89.20 (provisional) against the greenback on Tuesday, weighed down by negative cues from domestic equity markets. Falling crude oil prices supported the Indian currency at lower level, however, withdrawal of foreign funds kept the rupee under pressure, forex analysts said. At the interbank foreign exchange market, the rupee opened at 89.02 and touched an intra-day low of 89.27 against the greenback. The unit ended the session at 89.20 (provisional) against the US dollar, registering a loss of 4 paise from its previous closing level. The rupee had settled sharply…

The Indian rupee closed nearly flat on Tuesday, surrendering early gains as month-end dollar demand from importers offset broader strength in regional currencies.The rupee ended at 89.22 against the U.S. dollar, barely changed from its close of 89.23 in the previous session.The currency found its footing this week after slumping to an all-time low of 89.49 on November 21. While the central bank likely stepped in to shore up the currency on Monday, traders pointed to only intermittent signs of its presence in the market on Tuesday.It “seems like they (RBI) are active but largely in the non-deliverable forwards market,”…

The USD/CAD pair trades with a positive bias for the fifth consecutive day and holds steady above the 1.4100 mark through the early European session on Tuesday. Moreover, spot prices remain close to an over two-week top touched last Friday and seem poised to appreciate further amid a supportive fundamental backdrop.Crude Oil prices struggle to capitalize on the previous day’s bounce from a one-month low and meet with a fresh supply amid concerns that supply will exceed demand next year. This, in turn, is seen undermining the commodity-linked Loonie, which, along with the underlying bullish sentiment surrounding the US Dollar…

USD/JPY outlook remains weak on Tuesday, driven by FX intervention warnings. Stimulus package and Tokyo’s verbal warnings keep the USD/JPY in a delicate balance. Markets eye US PPI data that could provide fresh insight for Fed’s rate cut in December. The USD/JPY outlook edged lower on Tuesday as the Japanese yen regained some strength amid intensifying signals of FX intervention from Tokyo. Yen finally saw a mild relief after weeks of depreciation when government officials issued a strong verbal warning. -Are you looking for the best AI Trading Brokers? Check our detailed guide- Satsuki Katayama, Japan’s Finance Minister, delivered a…

News of the potential reclassification by the IMF comes as the rupee’s volatility has picked up under new chief Sanjay Malhotra who take charge of the central bank late last year | Photo Credit: Reuters The International Monetary Fund is expected to soon announce a change in how it classifies India’s exchange rate regime, according to people familiar with the matter, two years after the Washington-based lender upset the local central bank by suggesting it was intervening too heavily in the currency market.The new description of the country’s de facto currency regime is likely to include references to a crawling…

The rupee stayed on the recovery path and gained 11 paise to 89.05 against the US dollar in early trade on Tuesday, supported by lower crude oil prices in the international market. The Indian currency, however, remained under pressure due to a strong greenback, subdued stock market sentiment and withdrawal of foreign capital, forex analysts said. At the interbank foreign exchange market, the rupee opened at 89.02 and then traded at 89.05 against the greenback in initial deals, up 11 paise from its previous closing level.The rupee settled sharply higher by 50 paise at 89.16 against the greenback on Monday,…