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Kolkata: The rupee weakened by another 0.35% to 95.44 a dollar amid concerns over rising import bill as the Brent crude crossed the $102 a barrel mark.This is the third consecutive day of over 0.3% fall in the local currency, as the rupee came under pressure due to rising crude oil prices, foreign equity outflows and continued dollar demand from local importers.”Given the steep rise in spot USD/INR over the past three sessions, upside momentum may moderate near the 95.80 resistance level, while 95.10 should provide near-term support,” said Dilip Parmar, an analyst with HDFC Securities.The rupee opened at 95.25,…
According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance decreased to 206K for the week ending September 5. The latest print came in above initial estimates (205K) and was a tad lower than the previous week’s 207K (revised from 206K).Additionally, the 4-week moving average went down by 1.5K to 206K vs. the previous week’s revised prints. The report also indicated that Continuing Jobless Claims fell by 1K to 1.774M for the week ending August 29.Market reactionThe Greenback trades with decent gains, challenging the key…
Rupee declined for a third straight session on Thursday as oil prices continued to march higher on worries over the escalating conflict in the Middle East, elevated dollar demand linked to derivative maturities and corporate hedging.The rupee weakened 0.3% to end the session at 95.44 per dollar, its steepest single-day loss since mid-July.State-run banks were spotted selling dollars, most likely on behalf of the Reserve Bank of India, traders said, while also noting that the scale of such dollar sales had mellowed compared to last week.The central bank had deployed at least $8 billion in the previous trading week to…
The EUR/JPY cross struggles to capitalize on its modest intraday gains and trades around the 178.75 region during the first half of the European session on Thursday. Meanwhile, spot prices remain within striking distance of the year-to-date low, touched on Tuesday, as traders keenly await the European Central Bank (ECB) rate decision.A 25-basis-point (bps) ECB rate hike for the second time this year is all but certain, suggesting that the key focus will be on the central bank’s outlook for its longer-term policy path amid persistent inflationary pressures. In fact, the official flash estimate showed that Eurozone annual inflation rose…
The rupee fell 25 paise to 95.33 against the US dollar in early trade as Brent crude crossed $100 a barrel, raising concerns over India’s import bill. The rupee depreciated 25 paise to 95.33 against the US dollar in early trade on Thursday as Brent crude price crossed the USD 100 dollar mark sharply increasing concerns over India’s import bill.Forex traders said elevated crude oil prices and persistent dollar demand also weighed on investor sentiments.At the interbank foreign exchange market, the rupee opened at 95.15 against the US dollar, then lost ground to touch 95.33 against the American currency, registering…
USD/CHF loses ground after registering gains in the previous day, trading around 0.8090 during the Asian hours on Thursday. The pair depreciates as the US Dollar (USD) falls following a Reuters poll, in which the majority of economists said the Federal Reserve (Fed) will likely hold its interest rate steady at its September 15-16 meeting and for the rest of this year, once again defying market expectations for a series of hikes.Economic data have mostly come in strong in recent weeks, and several economists noted that the August Consumer Price Index data will be crucial for solidifying their outlook on…
Currency markets treaded water in cautious trading on Thursday as investors weighed a fresh surge in oil prices and global bond yields, while the yen’s powerful rally also took a breather ahead of U.S. PPI and inflation readings.Brent crude futures remained firmly above $100 a barrel after breaching the level on Wednesday, as Iran and the U.S. engaged in the biggest wave of attacks on shipping by both sides since the start of the war, threatening to worsen the disruption of energy supplies from the Middle East.The fresh energy-induced inflation pressure sent global bond yields back on an upward trajectory,…
The EUR/USD pair holds steady around 1.1635 during the early Asian trading hours on Thursday. Traders prefer to wait on the sidelines ahead of the European Central Bank (ECB) policy meeting and the release of the US August Producer Price Index (PPI) later in the day. The ECB is likely to raise interest rates on Thursday for the second time this year, driven by surging energy prices due to the ongoing US-Iran conflict. Traders have fully priced in a 25 basis points (bps) move to 2.5% as the latest data shows Eurozone inflation rose back above 3% in August. “A September hike looks…
However, RBI intervention pulled it back from the day’s lows | Photo Credit: FRANCIS MASCARENHAS With intensifying West Asia conflict triggering a surge in global crude oil prices amid supply concerns, the rupee breached the 95 to the dollar mark on Wednesday, after remaining below this level for six consecutive trading sessions even as the support it had from FCNR (B) deposit related inflows seems to be waning.The rupee closed at 95.10 per dollar, down 29 paise against the previous close of 94.81. It opened 4 paise weaker at 94.86/87 and tested a intraday low of 95.2250. However, RBI intervention…
ING economists Carsten Brzeski and Franziska Biehl argue that while German inflation is set to rise above 3% and stay elevated into year-end, a repeat of 2022’s double-digit surge is unlikely. Weak demand, a softer labour market and exhausted pandemic savings are curbing pricing power, forcing companies to absorb cost pressures through lower profits rather than passing them on to consumers.German firms absorb rising cost pressures”And while inflation looks set to rise further over the coming months, potentially moving above 3% and remaining elevated until year-end, a return to 2022-style inflation still looks unlikely. Some knock-on effects from energy costs…