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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…

India’s foreign exchange reserves reached another new all-time high in the week ended January 30, according to the Reserve Bank of India’s latest data. Foreign exchange reserves rose sharply by $14.361 billion in the week to $723.774 billion, driven by a jump in gold reserves while foreign currency assets dropped.Over the past few weeks, the forex kitty has been largely in an uptrend. Its previous high was $709.403 billion, touched in the previous week. For the reported week (that ended January 30), India’s foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at $562.392 billion, down $493…

The Euro found some respite on Friday versus its counterpart the Greenback, which enjoyed a short-live rally of just two days, but erased Thursday’s gains on Friday as depicted by the US Dollar Index (DXY). A risk-on impulse weighed on the Dollar’s safe-haven appeal, while an uneventful ECB monetary policy decision on Thursday, left traders leaning onto market mood. The EUR/USD trades at 1.1817, up 0.34%.Euro trims losses near 1.1820 as fading Dollar strength and steady ECB messaging steady the pairThe shared currency is poised to end the week with losses, but its seems the EUR/USD is poised to consolidate…

The Thai Baht (THB) is facing temporary weakness due to election-related uncertainties, softer gold prices, and a firmer USD. OCBC Group Research analysts Sim Moh Siong and Christopher Wong note potential scenarios for the upcoming elections and their implications for the THB, suggesting that a clear outcome could support the currency, while a contested result may pose challenges.Election uncertainty weighs on THB”USDTHB extended its move overnight. Election-uncertainty risk premia, softer gold prices and firmer USD remain some of the near term drivers.””A clear outcome allowing for the formation of majority government is the most positive as economic policies can potentially…

MUFG notes robust Korean export growth, especially in semiconductors, but says KRW has underperformed on heavy foreign equity outflows and AI-valuation concerns. With the Bank of Korea seen at the end of its easing cycle and KRW volatility elevated, MUFG expects choppy trading, though its forecasts show a gradual USD/KRW drift lower through 2026.Equity outflows hit Korean Won”That said, we still think the BoK’s easing cycle has ended given the improving economic fundamental, financial stability risk related to Seoul’s housing market and heightened KRW volatility.””This week, KRW was the underperformer in Asia with 2% depreciation against US dollar given significant…

The US Dollar (USD) saw little movement this week after markets assessed the United States (US) President Donald Trump’s nomination of Kevin Warsh, a former member of the Federal Reserve (Fed) Board of Governors, as the next Fed Chair, and the partial US government shutdown that pushed employment and inflation data to next week. The shutdown was ultimately resolved on Wednesday when President Trump signed a funding bill.The US Dollar Index (DXY) is trading near the 97.60 price zone after hitting two-week highs earlier on Friday. Next week, the US ADP Employment Change four-week average will be released on Tuesday,…

The Canadian Dollar (CAD) climbed sharply on Friday, adding half a percent against the US Dollar (USD) after January labor market data showed the unemployment rate dropping to 6.5%, its lowest reading since September 2024. The Loonie found support despite headline employment falling by 25,000, as a sharp decline in labor force participation drove the jobless rate lower. USD/CAD pulled back toward 1.3634, trimming gains accumulated over recent weeks.Labor market details were mixed. The unemployment rate fell three-tenths of a percentage point to 6.5%, but the improvement came primarily from 94,000 people exiting the labor force rather than from job…

DBS Group Research report, authored by Radhika Rao, reports that Moody’s has changed Indonesia’s rating outlook to ‘negative’ from ‘stable’ while affirming the Baa2 rating. The agency cited concerns about reduced predictability in policymaking and increased spending without corresponding revenue generation. The report emphasizes the potential for a downgrade if policy actions do not improve over the next 12-18 months.Moody’s negative rating outlook”Moody’s Ratings changed Indonesia’s rating outlook to ‘negative; from ‘stable’ on late Thursday, while affirming the Baa2 rating. The agency expressed far ranging concerns, citing “reduced predictability in policymaking, which risks undermining policy effectiveness and points to weakening…

Gold price (XAU/USD) rallies more than 3% on Friday, poised for a decent weekly gain as dip buyers emerged, following a session that pushed the yellow metal below the $4,800 mark. Worth noting that Friday has been a volatile session, with the non-yielding metal falling to a three-day low of $4,655 before erasing those previous losses. At the time of writing, XAU/USD trades at $4,963.XAU/USD stages a sharp rebound toward $4,950 as soft US labor data revives Fed easing betsThe non-yielding metal is enjoying a healthy recovery from Thursday. Greenback’s initial weakness on Friday reflected worse-than-expected US labor market data…

UOB’s report by Enrico Tanuwidjaja and Sathit Talaengsatya discusses the Bank of Thailand’s (BOT) shift from solely using interest rates to a broader policy framework. The BOT aims to address structural economic issues such as low productivity and high inequality while maintaining an accommodative interest rate policy. The report anticipates a final 25bps cut in February 2026, bringing the policy rate to 1.00%, which is expected to be sustained through 2026-27.BOT’s strategic policy adjustments”FX becomes a more operational domain, not just a communications domain. The BOT has raised concerns about baht appreciation and non-fundamental flows, including gold-linked flows that can…