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The rupee depreciated 48 paise to close at 88.70 (provisional) against the American currency on Thursday on a strong US dollar, weak domestic markets, and a hawkish US Fed.Forex traders said the US Federal Reserve slashed interest rates by 25 bps in its Federal Open Market Committee (FOMC) meeting. However, Fed Chair Jerome Powell’s commentary was hawkish, trimming rate-cut expectations for December.Moreover, month-end dollar demand from Oil Marketing Companies (OMCs) and foreign fund outflows may also weigh on the rupee.At the interbank foreign exchange market, the rupee opened at 88.37, and later fell to an intra-day low of 88.74. The…

The Indian rupee slid to its lowest in two weeks on Thursday as outflows worsened the hit from a hawkish tilt in Federal Reserve policy, which sent the dollar and U.S. Treasury yields higher.The rupee closed at 88.6950 against the U.S. dollar, down 0.6% on the day, after touching a two-week low of 88.7375 earlier in the session.India’s central bank likely stepped in intermittently, via state-run banks, to limit the rupee’s losses but the intervention was not aggressive, traders said.”A lot of stop losses have been triggered in 88.40 to 88.50 zone leading to fresh highs in USD/INR,” a trader…

AUD/USD gains ground after recovering its recent losses registered in the previous session, trading around 0.6580 during the European hours on Thursday. The Australian Dollar (AUD) holds ground against the US Dollar (USD) following the highly anticipated meeting between US President Donald Trump and China’s President Xi Jinping in South Korea. Any shift in China’s economic conditions could also affect the Australian dollar (AUD), given the close trade ties between China and Australia.President Trump announced that tariffs on China will be reduced to 47% from the current 57%. Trump added that the rare earth dispute has been resolved, ensuring no…

FILE PHOTO: The Indian Rupee logo is seen inside the Reserve Bank of India (RBI) headquarters in Mumbai, India, December 6, 2024 | Photo Credit: FRANCIS MASCARENHAS Reserve Bank of India (RBI) doesn’t view a weak exchange rate as a policy tool to gain a competitive edge in a world grappling with high tariffs, Poonam Gupta, RBI’s Deputy Governor said.“Can exchange rate give us a competitive edge in the world of tariffs? My view is that it’s not even a policy tool,” Gupta said Wednesday at an event hosted by the Business Standard newspaper in Mumbai. “Where the exchange rate…

Indian money background. Cash. One hundred and five hundred Indian banknotes Seamless pattern. Design for a poster, business project, textiles, wallpaper. | Photo Credit: rvimages The rupee depreciated 21 paise to 88.43 against the dollar in early trade on Thursday, weighed down by the strength of the American currency after Fed Chairman Jerome Powell indicated that the rate cut in December is not given. Forex traders said the dollar index rose to 99.05 and the 10-year yield to 4.07 per cent despite the 25 bps rate cut by the FED overnight. At the interbank foreign exchange, the rupee opened at…

The rupee depreciated 21 paise to 88.43 against the dollar in early trade on Thursday, weighed down by the strength of the American currency after Fed Chairman Jerome Powell indicated that the rate cut in December is not given. Forex traders said the dollar index rose to 99.05 and the 10-year yield to 4.07 per cent despite the 25 bps rate cut by the FED overnight. At the interbank foreign exchange, the rupee opened at 88.37 against the US dollar before dropping to 88.43, down 21 paise from its previous close.On Wednesday, the rupee had settled at 88.22 against the…

The Bank of Japan (BoJ) board members decided to keep the short-term interest rate target steady in the range of 0.4%- 0.5% following the conclusion of its two-day monetary policy review meeting on Thursday.The decision came in line with the market expectations.The Japanese central bank extended the pause to its tightening cycle into a sixth straight meeting, following a 25 basis points (bps) hike in January.Summary of the BoJ policy statementReal interest rates are at significantly low levels.Will continue to raise policy rate if economy, prices move in line with its forecast, in accordance with improvements in economy, prices.Important to…

GBP/USD fell steeply during Wednesday’s American market session, extending a decline through the 200-day Exponential Moving Average (EMA) and pushing Cable positioning even further into bear country. GBP/USD has closed in the red for eight of the last nine consecutive trading days, pushing the Pound Sterling (GBP) into a -2.46% swing against the US Dollar (USD) top-to-bottom.The Federal Reserve (Fed) cut its main reference rate by another 25 basis points on Wednesday, as many market participants expected. What caught investors off guard, however, was Fed Chair Jerome Powell’s press conference that struck an even more cautious note than usual. Before…

GBP/USD drops more than 0.35% on Wednesday, below the 1.3250 mark, as the Bank of England (BoE) rate cut expectations for the November meeting rise while traders await the Federal Reserve (Fed) monetary policy decision.The GBP/USD pair trades at 1.3219 at the time of writing, as sellers pushed the spot price below the 200-day Simple Moving Average (SMA) at 1.3237.Sterling weakens as soft UK data and fiscal concerns weigh ahead of key central bank meetingsData in the UK showed signs that the labor market is weakening and inflation remained unchanged at 3.8% in September. Also, an article published by the…

The Pound Sterling (GBP) posts a fresh almost three-month low at around 1.3200 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair slumps as the US Dollar Index (DXY) trades higher ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT and the continued underperformance from the British currency. At the time of writing, the US Dollar Index trades 0.2% higher to near 99.00.Investors keenly await the Fed’s policy announcement to get cues on the interest rate outlook, while remaining confident that the United States (US) central bank will reduce borrowing rates…