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The rupee depreciated 41 paise to close at 94.56 (provisional) against the US dollar on Tuesday, as elevated crude oil prices and unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiments.Forex traders said the rupee has already weakened quite sharply, factoring in the likely widening of the Current Account Deficit (CAD) and volatile capital flows.Moreover, persistent foreign fund outflows weighed on the rupee, as so far this year, FIIs have pulled out over $19 billion from Indian equities.At the interbank foreign exchange market, the rupee opened at 94.35 against the US dollar, then lost ground and touched an…
The Indian rupee weakened to a near one-month low on Tuesday, pressed by a stubborn rise in oil prices and sustained hedging by local importers against further weakness, underscoring anxiety over the currency’s outlook as it nears the 95 per dollar mark.The rupee touched a low of 94.54 per dollar during the trading session, its weakest level since March 30, before closing at 94.19, down 0.4% on the day.The currency’s losses were contained by dollar sales from state-run banks, most likely on behalf of the Reserve Bank of India, four traders said.Asian currencies were under pressure across the board on…
The Indian Rupee (INR) weakens further after a brief pause against the US Dollar (USD) in the opening session on Tuesday. The USD/INR pair jumps to near 94.50 as elevated oil prices continue to hurt the Indian Rupee.As of writing, the WTI Oil price trades 0.6% higher to near $95.60 and is close to its two-week high of $97 posted on Thursday.Currencies from economies, such as India, which rely heavily on oil imports to meet their energy needs, tend to underperform in a high oil price environment.Oil prices have remained higher due to uncertainty over the reopening of the Strait…
The rupee depreciated 24 paise to 94.39 against the US dollar in early trade on Tuesday, weighed down by elevated crude oil prices and month-end dollar demand amid a broader shift toward safe-haven assets.Forex traders said Brent oil continued to move higher at $109 per barrel, keeping India’s position vulnerable.Moreover, factors such as unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiments further.At the interbank foreign exchange market, the rupee opened at 94.35 against the US dollar, then lost some ground and touched 94.39 against the US dollar in initial trade, registering a fall of 24 paise over…
Gold (XAU/USD) trades with a negative bias below the $4,700 mark for the second consecutive day and slides back closer to last week’s swing low during the Asian session on Tuesday. The uncertainty over the second round of US-Iran peace talks assists the US Dollar (USD) in attracting some buyers, which, in turn, is seen weighing on the commodity. However, expectations for a less hawkish US Federal Reserve (Fed) could limit losses for the non-yielding bullion ahead of the key central bank event risk.Hopes for diplomatic efforts to end the Iran war receded after US President Donald Trump canceled his…
Mumbai: In a move aimed at bringing the offshore rupee activity within its regulatory radar, the Reserve Bank of India (RBI) Monday directed authorised bank dealers to report over-the-counter FX derivative contracts involving the rupee.The reporting will cover both deliverable and non-deliverable contracts. A staggered rollout of the directions will begin from July 2027 and full compliance is required by July 2028.The final guidelines come in the backdrop of the central bank clamping down on speculative trades on the offshore dollar/rupee market, leading to swings in the domestic market, too. Late March, the central bank had directed banks to restrict…
US Treasury Secretary Scott Bessent warned that the United States (US) will place sanctions on anyone conducting business with sanctioned Iranian airlines as commercial flights resume from Tehran, the Wall Street Journal reported on Monday.Key quotes Treasury will impose maximum pressure on Iran. Working with Iranian airlines risks sanctions. Discussed risks from overcapacity production with the EU.Market reactionAt the time of writing, the West Texas Intermediate (WTI) is up 1.35% on the day at $94.65. 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…
Silver (XAG/USD) declines and is trading around $74.90 on Monday, down 1.06% on the day. The white metal struggles to find a clear direction in an environment marked by investor caution.Markets remain focused on geopolitical developments in the Middle East, particularly around negotiations between the United States (US) and Iran. According to Axios, Tehran has reportedly proposed a new initiative aimed at ending hostilities and reopening the Strait of Hormuz, a key route for global Oil transport. This prospect supports some optimism, although the lack of concrete progress and the suspension of talks continue to fuel uncertainty.At the same time,…
The Indian rupee ended nearly flat at 94.15 against the US dollar, gaining just one paisa on Monday, as global uncertainties, rising crude oil prices, and West Asia tensions weighed on sentiment The rupee settled on a flat note, registering gains of just one paisa to close at 94.15 (provisional) against the US dollar on Monday, as rising global uncertainty, escalating tensions in West Asia and soaring crude oil prices weighed on investor sentiments.Forex traders said the INR/USD pair pared its initial losses, but the overall bias remains negative as FII sell-off and elevated crude oil prices restricted the gains…
Societe Generale’s Kenneth Broux and colleagues note that EUR/GBP has formed a lower high near 0.8740 and is struggling above its 200‑day moving average, with price action resembling a Head and Shoulders pattern. They highlight 0.8610 as key support, with potential downside projections to 0.8560/0.8535 and 0.8475, while a move above 0.8740 would negate the bearish setup.Head and Shoulders points to weakness”EUR/GBP carved out a lower high near 0.8740 earlier in April and has struggled to maintain above the 200‑DMA.””Price action has shaped a pattern resembling a Head and Shoulders, which signals potential downside.””The neckline around 0.8610 is a key…