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The rupee plunged to a record low and suffered its biggest single-session fall in two months on Wednesday, as a global bond rout and U.S. threats to acquire Greenland kept investors on edge and amplified concerns over outflows.The rupee fell for the sixth straight session, slipping to an all-time low of 91.7425 against the dollar. It closed down 0.8% at 91.6950 against 90.9750 previous close.The fall was exacerbated as the Reserve Bank of India stayed away from the market, and did not provide dollar supply, traders said.The rupee, the worst performing Asian on the day, is down 2% so far…
The Indian Rupee (INR) plunges to record lows against the US Dollar (USD) on Wednesday. The USD/INR rallies to near 92.00 as the Indian Rupee faces intense selling pressure due to consistent outflow of foreign funds from the Indian stock market and the risk-off market mood amid tensions between the United States (US) and the European Union (EU) over Greenland.Foreign Institutional Investors (FIIs) are consistently dumping their stake in the Indian stock market due to the absence of a trade deal announcement between the US and India, keeping demand for US Dollars sustained among Indian importers. So far in January,…
2025 was the year of the worst underperformance for the Rupee relative to the Asia Dollar index since 2013. The 40 currency trade-weighted REER is now at 97.5 and threatening to move towards levels not seen since 2014.Therefore, there are 2 aspects to consider here: Expectations for overall Dollar movement and idiosyncratic considerations for the RupeeThere are complex geopolitical and macroeconomic considerations at play in 2026, which will determine the way the overall Dollar behaves.1) The US labour market is weakening, but inflation is still high. The market is pricing 2 cuts of 25bps each by the Fed till the…
The EUR/JPY cross loses ground near 185.25 during the early European session on Tuesday. The Japanese Yen (JPY) edges higher against the Euro (EUR) as traders continue to pile into safe-haven currencies amid US President Donald Trump’s renewed tariff threats against European allies over Greenland. Meanwhile, Japan’s Prime Minister Sanae Takaichi on Monday called snap elections for February 8 and pledged a wave of measures to loosen fiscal policy. Takaichi’s plans to cut taxes and boost spending are raising doubts about the financial health of one of the world’s most indebted governments. This, in turn, could undermine the JPY and create a…
The rupee on Wednesday tested a new low of 91.57 per US dollar in intraday trade so far, amid global stock and financial markets getting roiled due to US President Trump’s plan to acquire Greenland, an autonomous territory of Denmark. Trump’s plan has raised the hackles of the European Union.The Indian unit opened 8 paise weaker at 91.05 per USD against the previous close of 90.97, according to the CCIL website.Amit Pabari, MD, CR Forex Advisors, observed that while in theory, a softer dollar should help emerging market currencies, in reality, uncertainty changes the rules. When fear rises, money looks…
The Indian rupee is at risk of opening at a lifetime low on Wednesday, with risk aversion triggered by the Greenland dispute compounding persistent pressures and leaving the currency reliant on the central bank’s support.The 1-month non-deliverable forward indicated the rupee is set to open in the 91.04–91.10 range against the dollar, after settling at 90.9750 on Tuesday. The currency’s all-time low is 91.0750, set in mid-December.Unnerved by US President Donald Trump’s threats over Greenland and the potential for a US–Europe trade dispute linked to the issue, investors swung into risk-off mode, dumped the dollar, and bought into safe-haven assets.The…
Gold price ( XAU/USD) climbs to near $4,775 during the early Asian trading hours on Wednesday. The precious metal extends the rally and is poised for another record high amid a time of political and economic uncertainty. The speech by US President Donald Trump at the World Economic Forum in Davos, Switzerland, will be in the spotlight later on Wednesday. Traders continue to pile into safe-haven assets amid tensions between the US and Europe over Greenland. US President Donald Trump over the weekend threatened to impose tariffs on eight European nations that oppose his plans to take control of Greenland. The BBC…
Gold (XAU/USD) hits yet another record high on Tuesday, climbing above the $4,700 psychological mark as rising geopolitical tensions drive strong safe-haven demand. At the time of writing, XAU/USD trades around $4,730, up nearly 1.25% for the day.Market sentiment remains fragile as renewed US-EU trade tensions dominate headlines. Over the weekend, US President Donald Trump threatened fresh tariffs on eight European nations over the Greenland issue.European leaders sharply criticized the move and warned that countermeasures are being prepared if the tariffs are implemented.The developments have revived fears of a broader transatlantic trade war. The risk-off mood is weighing on global…
The Indian rupee extended losses to a fifth consecutive session on Tuesday as strong dollar demand continued to put pressure on the currency, while a fresh low was averted after likely central bank intervention.The currency opened a tad weaker and rapidly declined to 91.0525, its lowest level in a month, and drifted closer to its all-time low of 91.0750 set in mid-December.It ended at 90.9750 to a dollar, down 0.1% from 90.91 at Monday’s close. The unit has lost around 1% in five sessions.Traders said that state-run banks likely sold dollars near the 91/rupee level, likely on behalf of the…
The rupee depreciated 7 paise to close at a record low of 90.97 (provisional) against the US dollar on Tuesday, as strong dollar demand from metal importers and persistent foreign fund outflows dented investor sentiment. Forex traders said rising geopolitical uncertainties, including renewed US expansionary signals, have increased risk aversion and kept emerging market currencies under pressure. Moreover, a sluggish domestic stock market triggered by an exodus of foreign capital further weighed on the local unit, they said. At the interbank foreign exchange, the rupee opened at 90.91 and lost ground, touched an intraday low of 91.06, and finally ended…