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The Indian rupee closed a tad weaker on Monday, unable to benefit from a broadly weaker dollar in the face of corporate demand for the greenback over a trading session that was also marked by technical glitches.The rupee closed at 90.7575 per dollar, down 0.1% from its close at 90.6550 on Friday.Market participants had flagged issues with execution of trades on the interbank order matching system in early trading which were subsequently resolved, helping shore up trading volumes.In the latter half of the session, traders observed two-sided corporate activity alongside dollar demand from some foreign banks.Traders expect the rupee to…
The rupee witnessed a volatile trading session and settled for the day on a lower note, down 9 paise at 90.74 (provisional) against the US dollar on Monday, as traders assessed the details of the India-US interim trade framework. Forex traders said the rupee witnessed high volatility as the support from positive domestic equities and foreign fund inflows was negated by risk-off sentiments among investors. At the interbank foreign exchange market, the rupee opened at 90.66 against the US dollar, then gained some ground to touch 90.37, registering a gain of 28 paise over its previous close. It, however, erased…
Gold (XAU/USD) extends its sideways consolidative price move above the $5,000 psychological mark through the first half of the European session on Monday, though it remains below last week’s swing high amid mixed cues. Data released over the weekend showed that the People’s Bank of China (PBOC) extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve (Fed) expectations and concerns about the central bank’s independence drag the US Dollar (USD) lower for the second straight day, providing an additional boost to the non-yielding yellow metal.Meanwhile, signs of easing tensions in the Middle East boost…
Financial technology and data provider London Stock Exchange Group’s foreign exchange trading platform was facing technical issues in India on MondayTraders highlighted issues with trade execution on the interbank order matching system, restricting their ability to transact on the spot dollar/rupee trading platform.The technical issues began around the time the Indian rupee opened for trading at 9 a.m. IST and persisted through the first two hours of trade.LSEG did not immediately respond to a Reuters email seeking comment.LSEG is among the few entities other than banks that are authorised by the Reserve Bank of India to operate an electronic trading…
PO07_Pulling_rupee | Photo Credit: Anjana C _11700@Chennai The rupee gained 21 paise to 90.44 against the US dollar in early trade on Monday, supported by positive sentiments after India and the US reached a framework for an interim trade pact. Forex traders said the rupee opened on a lower note, but soon gained the lost ground and was trading on a positive note after India and the US on Saturday announced they have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade. Moreover, a…
The Japanese Yen (JPY) kicked off the new week on a weaker note as Prime Minister Sanae Takaichi’s landslide win in Sunday’s election paves the way for further fiscal stimulus. The initial market reaction, however, turns out to be short-lived after Japan’s Finance Minister Satsuki Katayama stepped up JPY intervention warnings and confirmed close coordination with the US against disorderly FX moves. This, along with some follow-through US Dollar (USD) selling, triggers an intraday USD/JPY turnaround of nearly 150 pips from the Asian session swing high, around the 157.65 region.Meanwhile, data released earlier today showed that Japan’s real wages shrank…
Indian foreign exchange traders will watch foreign portfolio inflows this week to see whether the rupee’s rally, sparked by last Monday’s U.S.-India trade deal announcement, could extend meaningfully.In fixed income, bond market investors will monitor demand-supply dynamics, which could prove key in determining the direction of bond yields.The rupee closed at 90.6550 on Friday, up over 1% on the week. The U.S. and India unveiled an interim trade framework on Friday, building on an initial announcement earlier last week. While the breakthrough has lifted sentiment on Indian assets, analysts remain cautious about its impact on portfolio flows. Foreign investors have…
The yen extended a string of recent losses in early Asian trading on Monday after Japanese Prime Minister Sanae Takaichi swept to victory in Sunday’s election, easing the path to further fiscal stimulus. The yen slid as much as 0.3% to 157.72 yen against the dollar, its seventh consecutive day of decline, to reach its weakest level in two weeks.Takaichi is projected to deliver as many as 328 of the 465 seats in parliament’s lower house for her Liberal Democratic Party. Alongside her coalition partner, the Japan Innovation Party, known as Ishin, Takaichi now has a supermajority of two-thirds of…
MUFG Bank analysts Lin Li and Khang Sek Lee note the People’s Bank of China is keeping USDCNY fixings below 7.0000, allowing the Chinese Yuan to act as a stabilizing anchor for Asia FX. Analysts expect subdued CPI to sustain a dovish PBOC stance and see scope for a 10 bps policy rate cut and 50 bps RRR reduction by Q1 if growth disappoints.CNY resilience but growth still soft”We expect the CNY to remain a stabilizing anchor for most regional FX, supported by the PBOC continuing to set the daily USDCNY fixing rate below the 7.0000 level.””If there is any…
Analyst says the 89.80–90.00 zone has now emerged as a strong support base for the rupee against the US dollar. The rupee could find short-term support in the wake of India and the US reaching a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade, with market experts seeing the Indian currency strengthening towards the 89 level against the US dollar. The Indian unit (INR) has depreciated about 5 per cent against the USD since August 2025, when US slapped punitive tariffs on Indian goods.Elara Capital’s economists, in a report, said in near term, they expectUSD/INR reversing direction…