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The Yen trades a fraction under 164.00 on Tuesday, marginally weaker on the day, inside a 30-pip band with a floor above 163.50 and a high a few ticks beneath the standing cycle extreme. That extreme is the currency’s weakest level against the Dollar in four decades, and the pair has now spent three sessions grinding at it without a meaningful pullback.What makes that stillness remarkable is the backdrop it declined to notice. Tuesday delivered the largest single-session equity shock in Asia this year, and the currency that is supposed to be bought when Asia breaks did not move.A haven…
Mumbai: Two of India’s largest banks, State Bank of India (SBI) and HDFC Bank are together raising an aggregate of at least $1.7 billion through loans from foreign banks as they shore up their dollar resources to take advantage of the Reserve Bank of India’s (RBI) special facility to attract dollars into the country.SBI is raising $1 billion through a five-year loan from HSBC and Japanese bank MUFG which will be syndicated to other lenders next month. This is in addition to the $500 million India’s largest lender had raised, first through a $300 million three-year senior unsecured floating-rate bond…
The Euro is on track for its eighth gain in nine sessions against the Pound, and the explanation that would normally cover a run of that length is not available. Bank Rate sits 150 basis points above the European Central Bank deposit rate, precisely where it has sat since the middle of June, and that spread is what dragged this cross to a one-year low in the first place. The gap has not moved. The cross has.The spread that never narrowedCurrencies do not trade the rate differential printed on the screen. They trade the one the forward curve expects to…
Private-sector hiring in the US has further cooled in mid-July. According to the NER Pulse, the weekly companion to the ADP National Employment Report, companies added an average of 15K jobs per week in the four weeks ending July 11.That marks another pullback from the prior reading (16.5K), showing an extra impasse in hiring.Market reactionThe Greenback creeps higher, extending its multi-day recovery and prompting the US Dollar Index (DXY) to trade closer to its yearly peaks well past the 101.00 hurdle. Employment FAQs Labor market conditions are a key element to assess the health of an economy and thus a…
The RBI has intervened in every trading session since Friday, stepping up the defence of the currency, which traders are reading as a sign of lower tolerance for rupee weakness. | Photo Credit: Avijit Sadhu The Indian rupee strengthened on Tuesday to close at its strongest level in two weeks as a sharp retreat in oil prices and likely central bank intervention helped the currency cement its bounceback from near record low levels.Brent crude oil prices fell 3% to $85.6 per barrel, their lowest in over a week, which helped lift the rupee to 95.8525 per dollar, up 0.1% from…
ING’s Chris Turner highlights a Bloomberg source story suggesting the Swiss National Bank (SNB) may keep its policy rate at 0.00% until end-2027, aligning with ING’s own forecast. He argues this entrenches Swiss Franc (CHF) underperformance in rising global rate environments and supports using USD/CHF to express hawkish Fed views, with potential for the pair to reach 0.85 in August if the Fed hikes.Franc seen as prime funding currency”Yesterday afternoon, Bloomberg ran a source story that insiders at the Swiss National Bank felt the SNB would keep the policy rate unchanged at 0.00% until the end of 2027. Forward guidance,…
Gold (XAU/USD) attracts some follow-through selling after the previous day’s failure to find acceptance above $4,100, weakening below the $4,050 level during the Asian session on Tuesday. The downside potential, however, seems limited as the US Dollar (USD) bulls pause ahead of the crucial two-day FOMC policy meeting. Investors will look for cues about the US Federal Reserve’s (Fed) future policy path, which will play a key role in driving the USD demand and providing a fresh directional impetus to the non-yielding yellow metal.Heading into the key central bank event risk, traders pared Fed rate-hike bets amid renewed hopes for…
The U.S. dollar held at a one-month high on Tuesday as traders weighed a slim but lingering chance of a rate hike at the Federal Reserve’s upcoming meeting, even as falling oil prices eased some concerns over inflation. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, edged up 0.03% to 101.55, with the euro down 0.01% at $1.1366. Against the Japanese yen, the dollar gained 0.05% to 163.82, while sterling eased 0.02% to $1.3284. Although a pause in U.S. attacks on Iran pushed oil prices lower and somewhat eased inflation…
WTI Crude Oil trades just above $81.00 on Monday, down close to 9% from Friday’s close near $89.00, having gapped more than $5.00 lower at the open and spent the session extending rather than repairing it. Brent broke beneath the $90.00 handle for its steepest single session since the April ceasefire. What the market has bought is the fourth de-escalation of this war since the spring, and this one has no signature on it at all.A ceasefire with one participantWashington suspended its strike campaign over the weekend after 13 consecutive nights, and by Monday a third day had passed without…
The Pound Sterling retreats by 0.13% even though the Greenback is flat during the day, as risk appetite shifted sour on news that a Chinese state-backed company is producing chipmaking machines, prompting a sell-off in ASML, the Dutch-based company. The GBP/USD trades at 1.3305, after reaching a high of 1.3363.GBP/USD slips as chipmaking worries, Fed-BoE caution, UK political uncertainty weighedThe de-escalation of the Middle East conflict is a relief for major central banks, as Oil prices slide as the US paused attacks on Iran over the weekend. The US President Donald Trump warned of further military action if negotiations between…