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The Indian rupee is likely to open flat on Friday and hold a narrow range before the central bank’s policy announcement, with risk aversion limiting appetite for rupee and other emerging-market currencies. The 1-month non-deliverable forward indicated the rupee will largely remain unchanged from 90.3550 on Thursday. The currency, buoyed by the U.S.-India trade deal, is on track for its best weekly performance in more than three years.The rupee has repeatedly run into resistance near the 90-per-dollar level amid this trade deal rally, and bankers say the mark is likely to remain a key technical barrier.”There is buy interest (to…
The USD/JPY pair gains momentum to a two-week high near 157.00 during the early Asian session on Friday. The Japanese Yen (JPY) remains under selling pressure against the US Dollar (USD) ahead of Japan’s snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday. Markets expect that a victory for Japanese Prime Minister Sanae Takaichi will lead to expanded fiscal stimulus and continue the JPY’s weakness. Takaichi said that she aims to begin implementing a two-year suspension of the 8% consumption tax on food and beverage items within…
EUR/CAD trades around 1.6130 on Thursday at the time of writing, virtually unchanged on the day, as markets digest the European Central Bank’s (ECB) policy decision and monitor Canada-specific factors.The European Central Bank announced on Thursday, following its February meeting, that it kept its key interest rate unchanged at 2.15% in line with market expectations. In its statement, the ECB said that the Eurozone economy remains resilient in a challenging global environment, supported by low unemployment and solid private sector balance sheets.The central bank nevertheless acknowledged that the outlook remains uncertain, particularly due to persistent geopolitical tensions and uncertainty surrounding…
The Bank of England kept its main interest rate unchanged at 3.75% on Thursday with U.K. inflation remaining above target and economic growth is showing signs of picking up. The decision was widely anticipated in financial markets but the split on the nine-member rate-setting panel was much closer than expected. Five members of the Monetary Policy Committee opted to keep rates unchanged while four voted for a quarter-point cut. The central bank, which sets interest rates for the whole of the U.K., has been steadily reducing interest rates over the past 18 months, more often than not every three months.…
Governor Andrew Bailey takes questions from reporters, offering markets a clearer sense of how the central bank is thinking. His remarks follow the widely expected decision to keep the policy rate on hold at 3.75%.This section below was published at 12:00 GMT to cover the Bank of England’s policy announcements and the initial market reaction.At its February meeting, the Bank of England (BoE) held the policy rate at 3.75%, as markets had anticipated. The vote, however, exposed a split on the Monetary Policy Committee (MPC) as four members supported a 25-basis-point cut.BoE policy statement takeawaysAndrew Bailey, Governor of the Bank…
The rupee appreciated 14 paise to close at 90.33 (provisional) against the US dollar on Thursday, on trade deal optimism and overnight decline in commodity prices, even as the upside remained capped as investors look for more clarity on the India-US trade deal. Forex traders said significant corporate dollar demand and a weak trend in domestic equities restricted the upside for the local unit. Notwithstanding the trade-deal optimism, forex traders said market participants are now shifting focus from celebration to verification as no official documents have been released, and neither side has formally published the final terms. Moreover, investors are…
The European Central Bank (ECB) is holding its two-day meeting and will announce its monetary policy decision on Thursday. The ECB is widely expected to keep interest rates on hold for the fifth consecutive meeting, leaving the main refinancing operations, the marginal lending facility, and the deposit facility at 2.15%, 2.4%, and 2%, respectively.Additionally, ECB President Christine Lagarde will hold a press conference afterward to explain policymakers’ reasoning behind the decision. Ahead of the announcement, the EUR/USD pair trades above the 1.1800 mark, stabilizing after retracing sharply from January’s peak at 1.2082. What to expect from the ECB interest rate…
The rupee traded in a narrow range and gained 7 paise to 90.40 against the US dollar in early trade on Thursday, amid corporate dollar demand and as investors are awaiting for confirmation on the India-US trade deal. Forex traders said market participants are now shifting focus from celebration to verification as no official documents have been released, and neither side has formally published the final terms. Moreover, investors are awaiting cues from Friday’s RBI interest rate announcement. At the interbank foreign exchange market, the rupee opened at 90.52 against the US dollar, then gained some ground to 90.40, registering…
Silver price (XAG/USD) plunged over 10% after two days of gains, trading around $77.00 per troy ounce during the Asian hours on Thursday. Silver prices fall as precious metals face renewed selling pressure and increased volatility.Dollar-denominated precious metals, including Silver lose ground amid a stronger US Dollar (USD), fueled by hawkish signals from the Federal Reserve (Fed) and expectations of a slower pace of US rate cuts.Fed Governor Lisa Cook said she would not back another cut without clearer evidence that inflation is easing, stressing greater concern over stalled disinflation than labor market weakness.Investors also weighed the implications of Kevin…
The dollar steadied at the start of Asian trade on Thursday ahead of interest rate decisions from the European Central Bank and the Bank of England, both of which are expected to keep rates on hold later in the global day. The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.2% at 96.671, having traded near a two-week high earlier. The euro was steady at $1.1800 ahead of the European Central Bank decision, where it is expected to keep rates on hold. Investors’ attention will be focused on the post-policy press conference…