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The Indian rupee surged in the non-deliverable forward market trading after India and the United States clinched a trade deal, fuelling expectations of renewed foreign inflows.One-month dollar/rupee NDF levels point to an opening near 90.15-90.25, versus 91.5125 on Monday.Add as a Reliable and Trusted News Source(You can now subscribe to our ETMarkets WhatsApp channel) Source
US President Donald Trump said he will slash tariffs on India to 18% after Prime Minister Narendra Modi agreed to stop buying Russian oil, Bloomberg reported on Monday. Trump added that India will also “move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO” as well as purchase “over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products.”Market reaction As of writing, the USD/INR pair is down 1.39% on the day at 90.61. Tariffs FAQs Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed…
Middle East trade is experiencing significant growth, projected to increase by 15% compared to 9% globally from 2021 to 2024. Asia is expected to dominate this trade corridor, expanding from USD 0.9 trillion in 2024 to USD 1.5 trillion by 2030. Additionally, GCC-Africa trade is anticipated to double to USD 260 billion by 2030, report Standard Chartered Bank analysts.Rapid growth in Middle East trade”Middle East (ME) trade is gaining rapidly, growing 15% vs 9% global growth in 2021-24 as supply chains fragment and reroute through the region.””Asia is the dominant and most scalable trade corridor and looks set to expand…
Market participants said the central bank’s dollar sales and swap operations helped stabilise the currency and manage liquidity amid pressure from higher borrowing plans. | Photo Credit: Yields of Government Securities (G-Sec) hardened on Monday as the Union Budget for FY27 proposed a higher Government borrowing programme. However, the rupee recovered lost ground after reports of RBI intervention in the forex market.The Union Budget for FY27, announced on February 1 (Sunday), has pegged the Government’s gross market borrowing higher at ₹17.2 lakh crore, up from ₹14.8 lakh crore in FY26.10-year benchmarkYield of the 10-year benchmark G-Sec (6.48 per cent 2035GS)…
Deutsche Bank Research Analyst Michael Hsueh reiterates its bullish outlook on Gold, maintaining a target price of $6,000 per ounce. The report emphasizes that recent price corrections do not indicate a fundamental shift in investor sentiment. It highlights ongoing positive thematic drivers for Gold and notes significant investment flows from China as a key factor supporting this outlook.Bullish outlook for Gold persists”We argue that the adjustment in precious metal prices overshot the significance of its ostensible catalysts. Moreover, investor intentions in precious (official, institutional, individual) have not likely changed for the worse as of yet.””Gold’s thematic drivers remain positive and…
The Indian rupee logged its best single-day gain in over a month on Monday, boosted by likely dollar sales by the central bank and modest inflows that dulled the spillover from global market volatility.The central bank complemented its interventions with dollar-rupee buy/sell swaps, which, traders said, were intended to offset the liquidity impact of its spot dollar sales.The liquidity impact of FX interventions has remained in focus due to their effect on money market interest rates as worries over hefty government borrowing have kept government bond yields elevated.On Monday, the rupee rose 0.5% to end the session at 91.5125 per…
Deutsche Bank’s report, authored by Jim Reid, highlights a major sell-off in Gold, with a decline of 8.95%, marking its largest daily drop since 2013. The report attributes this volatility to the nomination of Kevin Warsh as Fed Chair, which has raised hawkish expectations. The report also notes that Gold has seen a speculative element in its recent price movements, alongside a broader risk-off mood in the markets.Volatility driven by Fed Chair nomination”Welcome to February with another big sell-off in Gold (-5%) and Silver (-10%) overnight, and a partial US government shutdown that isn’t as severe as the record one…
The rupee gained 37 paise to 91.56 against the US dollar in early trade on Monday, a day after the Union Budget 2026-27 was presented, largely as crude oil prices retreated from their elevated levels. Forex traders said for the rupee, the budget offered reassurance, not relief. Moreover, the government’s high borrowing plan is likely to weigh on investor sentiments. The government is likely to borrow ₹17.2 lakh crore in the next financial year to fund its fiscal deficit projected at 4.3 per cent of the GDP. At the interbank foreign exchange market, the rupee opened at 91.95 against the…
Silver price (XAG/USD) trades cautiously at around $80 during the Asian trading session at the start of the week, slightly above the fresh four-week low of $73.33 posted on Friday. The white metal strives to regain ground after last week’s mayhem, in which it lost over 30% of its value from the lifetime highs of $121.66, triggered due to a strong US Dollar (USD), profit-booking after a stalwart rally, and expectations of a hawkish Federal Reserve’s (Fed) monetary policy outlook.Technically higher US Dollar makes the Silver price an unfavorable risk-reward bet for investors.As of writing, the US Dollar Index (DXY),…
Gold price (XAU/USD) tumbles to around $4,780 during the early Asian session on Monday. The precious metal extends the decline after reaching historic highs last week amid signs of political stability in the United States (US). Traders will take more cues from the US ISM Manufacturing Purchasing Managers Index (PMI) report later on Monday. The yellow metal had been soaring to record highs in the previous weeks, bolstered by worries that US President Donald Trump would choose a Federal Reserve (Fed) Chairman who would cave into his demands to cut interest rates. Nonetheless, reports that Trump would nominate Kevin Warsh, who is…