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Commerzbank notes that USD/TWD has risen for five consecutive sessions to 31.68, driven by foreign equity outflows as global tech stocks correct. Taiwan’s exports and imports are surging on AI-related demand, while CPI has moved above the central bank’s 2% target. Even so, the CBC is expected to keep its policy rate unchanged at 2% at the upcoming meeting.Equity outflows and CPI lift USD/TWD”May exports jumped 51.7% yoy (Bloomberg consensus: 41.2%) vs 39.0% in April, marking the fifteenth consecutive month of double-digit growth. Integrated circuit exports surged 58.3% vs 40.5% in April, supported by robust demand for leading-edge chips used…
The European Central Bank (ECB) announced on Thursday that it raised key rates by 25 basis points (bps) following the June policy meeting, as expected. With this decision, the interest rate on the main refinancing operations, the interest rates on the marginal lending facility and the deposit facility stood at 2.4%, 2.65% and 2.25%, respectively.Developing story, please refresh the page for updates.ECB policy statement key takeaways”War in Middle East is generating inflation pressures, and decision to raise rates is robust across a range of scenarios mapping out how shock might evolve and affect medium-term outlook for Euro area.””In baseline of…
The Indian rupee dropped against the US dollar on Thursday, almost wiping out gains from the central bank’s measures to attract dollar inflows, as weak Asian cues and persistent dollar demand from oil firms weighed.The rupee opened lower at 95.52 per U.S. dollar and stayed under pressure since then, with bankers pointing to sustained dollar demand, particularly from oil companies, alongside usual mid-month flows.The currency ended at 95.76, down 0.5%, barely holding on to any of the gain notched on Friday.”The dollar had weakened post the release of yesterday’s U.S. inflation data, but reversed its weakness after news of escalation…
Danske Research Team notes that Iran’s Revolutionary Guard has declared the Strait of Hormuz closed and reported attacks on vessels, while the US launched new strikes on Iranian targets. Brent crude has climbed toward USD 95/bbl on these developments.Strait of Hormuz tensions lift Brent”In the Iran-war, Iran’s Revolutionary Guard declared the Strait of Hormuz closed and threatened to target any vessel attempting to transit, reporting that two ships were fired upon, although US Central Command said commercial traffic “was continuing to transit in and out of the Strait”.””While the US launched new strikes on Iranian military assets inside Iran, Iran…
The rupee plunged by 32 paise to 95.57 against the US dollar in early trade on Thursday following a rise in global crude oil prices as hostilities between the US and Iran continued.Heavy FII outflows, weak domestic equity market and a marginally stronger greenback further weighed on the local unit.At the interbank foreign exchange market, the rupee opened at 95.55 against the US dollar before dropping further to 95.57.The local unit appreciated 16 paise to close at 95.25 against the US dollar on Wednesday, amid likely intervention from the Reserve Bank of India (RBI) to curb excessive volatility and prevent…
USD/JPY remains flat after two days of gains, trading around 160.50 during the Asian hours. The pair moves little after reaching a six-week high of 160.56 during earlier hours on Thursday, which could be attributed to possible foreign-exchange intervention by Japanese authorities.Finance Minister Satsuki Katayama stated earlier this week that the government is keeping a close watch on currency market movements. She emphasized that Japan’s stance remains unchanged regarding its preparedness to implement decisive steps when needed to ensure market stability.The Bank of Japan (BoJ) is widely anticipated to hike interest rates next week as policymakers battle soaring energy costs…
The Indian rupee is poised to kick off Thursday on a weaker note after a long-standing pressure point returns to the fore, with oil prices climbing after Iran and the United States traded strikes.The rupee is expected to open in the 95.35-95.40 per dollar range, traders said, having settled at 95.2650 on Wednesday. The currency climbed to a high of 95.10 on Wednesday, aided by what traders said was dollar selling by state-run banks, likely on behalf of the Reserve Bank of India (RBI).It appears that after taking several steps to support the currency, the RBI is now reinforcing its…
“Ending soon” did not survive the day. Hours after telling Fox News the Iranians had asked him to stop the bombing, Trump was complaining Tehran took “too long to negotiate a deal,” warning it would “pay the price,” and insisting all Iran has to do is “start signing a paper.” By evening, US Central Command confirmed strikes on multiple targets for a second straight day, citing “Iran’s unwarranted and continued aggression,” while Defense Secretary Pete Hegseth said “key facilities” were being hit and sidestepped a question on whether striking civilian infrastructure would amount to a war crime. Iranian media placed…
West Texas Intermediate (WTI) trades around $89.40 at the time of writing on Wednesday, up 2.33% on the day, as investors return to the Oil market following a strong rebound driven by geopolitical tensions in the Middle East.Crude Oil prices are recovering a bullish tone after United States (US) President Donald Trump warned that further military operations against Iran remain possible if Tehran continues to delay negotiations with Washington. In a post on Truth Social, Trump stated that Iran’s military capabilities have been severely weakened and argued that Iranian authorities now have no alternative but to negotiate.This rhetoric has revived…
ING strategists Warren Patterson and Ewa Manthey highlight that Chinese unwrought Aluminium and product exports rose strongly in May to the highest level since November 2024, helped by overseas demand after Middle East disruptions. They also note that CFTC (Commodity Futures Trading Commission) data show an increase in net long Aluminium positions, driven by declines in both longs and shorts.China exports and CFTC data”On the export side, shipments of unwrought aluminium and products rose 15.5% YoY to 632.4kt.””This is the highest since November 2024, as producers responded to stronger overseas demand following supply disruptions from the Middle East.””Aluminium net longs…