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Gold retreats sharply after touching a fresh all-time peak earlier this Tuesday amid some profit-taking. Geopolitical risks, fears of a US government shutdown, and Fed rate cut bets could support the bullion. Dovish Fed expectations keep the USD depressed and should further limit losses for the commodity. Gold (XAU/USD) surrenders its intraday gains to the all-time top and drops to a fresh daily low, around the $3,820-3,819 area during the first half of the European session on Tuesday. The pullback lacks any obvious fundamental catalyst and could be attributed to some profit-taking amid extremely overbought conditions on short-term charts, and…

European Central Bank Vice President Luis de Guindos said on Tuesday that “the current level of interest rates is adequate.”He further noted that “we will take further decisions meeting by meeting.”Market reactionEUR/USD was last seen trading at 1.1746, up 0.16% so far. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively…

The Japanese Yen attracts some dip-buyers despite a divided BoJ Summary of Opinions.Disappointing macro data and a positive risk tone also do little to undermine the JPY.The divergent BoJ-Fed policy expectations also act as a headwind for the USD/JPY pair.The Japanese Yen (JPY) extends its intraday ascent through the early European session on Tuesday, which, along with sustained US Dollar (USD) selling bias, drags the USD/JPY pair to the 148.00 neighborhood in the last hour. Despite a divided Bank of Japan’s (BoJ) Summary of Opinions, investors seem convinced that the central bank will stick to its policy normalization path. This…

The Indian Rupee falls to near 89.00 against the US Dollar on Tuesday.Investors are divided over whether the RBI will hold interest rates steady on Wednesday.US government shutdown risks keep the US Dollar on tenterhooks.The Indian Rupee (INR) drops to near 89.00 against the US Dollar (USD) on Tuesday, close to its all-time high of 88.12 posted last week. The pair is expected to trade broadly sideways as investors await the monetary policy announcement by the Reserve Bank of India (RBI) on Wednesday.Market experts are divided over whether the RBI will hold the Repo Rate steady at 5.5% and restart…

While the Rupee has weakened 2.9% against the Dollar YTD in 2025, the depreciation against other major currencies has been far more pronounced. The Rupee has fallen 16% against the Euro, 11% against the Pound, and 6% against the Chinese Yuan — significant moves by any measure. On a trade-weighted basis, Rupee overvaluation against a basket of currencies has corrected by nearly 8%.Historically, periods of Rupee weakness have coincided with sharp spikes in volatility. The spot-vol correlation in USDINR has typically been positive, meaning that as the spot moves higher, volatility rises. This is natural since most participants are short…

West Texas Intermediate (WTI) Oil price falls on Tuesday, early in the European session. WTI trades at $62.98 per barrel, down from Monday’s close at $63.01.Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $66.70 after its previous daily close at $66.75. WTI Oil FAQs WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a…

The rupee rose 3 paise to 88.72 against the US dollar in early trade on Tuesday on the back of a fall in crude oil prices and positive sentiments in the domestic equity markets.However, a marginally stronger greenback, coupled with FII outflows, prevented sharper gains in the local unit, according to forex traders. They added that the markets are awaiting the Reserve Bank of India’s (RBI’s) Monetary Policy Committee decision, which will be announced on Wednesday. At the interbank foreign exchange, the rupee opened at 88.73 against the US dollar before inching up to 88.72, higher by 3 paise from…

The Rupee closed 4 paise weaker on Monday at 88.76 as it was weighed down by foreign portfolio outflows from the equity markets amid risk-off sentiment, and demand for the greenback from corporates.This closing was just off the record closing low of 88.7750 per US Dollar, hit on September 24th.The Rupee opened a tad stronger at 88.69 against previous close of 88.72. However, it could not sustain the gains due to demand for Dollars from custodial banks and India Inc. Intraday, it hit a low of 88.81.DMI Finance, in a report, said in the near term, the Rupee’s trajectory is…

Rupee consolidated in a narrow range and settled for the day lower by 7 paise at its all-time closing low of 88.79 (provisional) against US dollar on Monday, on persistent foreign capital outflows and rise in risk-off sentiments. Forex traders said rupee is hovering near its all-time low level as investors remained concerned over global trade uncertainties and impact of US visa fee hike on India’s IT services exports. Moreover, the Reserve Bank of India (RBI) policy meeting outcome on October 1, is expected to influence rupee and government bond movements. At the interbank foreign exchange, the rupee opened at…

The Euro appreciates to the 1.1725 area on concerns about a possible government shutdown in the US.US President Trump will meet congressional leaders 24 hours before the deadline in an attempt to avert the shutdown.Technically, the pair maintains the bearish structure from 1.1920 highs intact.EUR/USD opened the week in a moderately bid tone, extending its recovery to 1.1725 at the time of writing on Monday, after bouncing from 1.1645 lows last week. Investors’ concerns about a highly likely US government shutdown this week and hopes of back-to-back Federal Reserve (Fed) interest rate cuts have sent US Treasury yields and the…