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The Indian rupee navigated competing impulses to end little changed on Wednesday, with traders pointing to volatility in oil prices, elevated dollar demand due to maturing non-deliverable forward contracts and likely central bank intervention.The rupee closed at 95.2650 per dollar, up marginally compared to its close of 95.35 in the previous session.The local currency oscillated between 95.11 and 95.56 over the course of the trading session. State-run banks were spotted offering dollars and conducting dollar-rupee buy/sell swaps, most likely on behalf of the Reserve Bank of India, traders said.Brent oil prices steadied near $90 per barrel on Wednesday after swinging…
The Canadian Dollar (CAD) is hovering near the upper boundaries of its year-to-date range against the US Dollar, underperforming as one of the weakest major currencies in recent weeks. A sharp correction in Gold prices, sluggish relative economic growth, and negative bond yield spreads with the US have combined to create persistent headwinds for the Loonie. As the market prepares for critical central bank decisions, major financial institutions are weighing whether the currency is poised for an immediate stabilization or if it will face prolonged pressure.USD/CAD daily chart. Source: FXStreet.Declining commodity prices and widening yield gaps drag the Loonie lowerMacro strategy…
The rupee is likely to average around 96/USD in FY27, however, the outlook remains subject to key downside risks, including potential US dollar appreciation and a rate hike scenario, geopolitical developments, and movements in crude oil prices, according to a report by brokerage house Motilal Oswal. The report highlighted that the rupee had weakened sharply during April-May 2026, hitting a low of 96.8/USD on May 20 amid concerns over rising crude oil prices, widening trade deficits, and sustained foreign portfolio outflows. However, it has since recovered about 1.3 per cent from its lows as of June 9, 2026, and averaged…
The Indian central bank likely stepped in to the foreign exchange market on Wednesday to support the rupee, three traders told Reuters, as maturing contracts in the non-deliverable forwards market exerted pressure on the currency. The rupee was at 95.27, up modestly on the day after hitting an intra-day low of 95.5625 in early trading. The Reserve Bank of India also likely paired its spot dollar sales with dollar-rupee buy/sell swaps for maturities over 1 year, the traders said. Both the spot dollar sales and swaps were being carried out by state-run lenders, likely on behalf of the RBI, one…
The US Bureau of Labor Statistics (BLS) will publish the May Consumer Price Index (CPI) data on Wednesday. The report is expected to show another step up in consumer inflation, driven by the persistently high Oil prices due to the ongoing crisis in the Middle East. The monthly CPI is forecast to rise 0.5%, following the 0.6% increase recorded in April, while the annual reading is seen climbing to its highest level since May 2023 at 4.2%, from 3.8% in April. Core CPI figures, which exclude volatile food and energy prices, are expected to post an increase of 0.3% and…
The United States (US) officials said that the second round of strikes in Iran is taking place now, targeting air defense and radar systems, Axios reported early Wednesday.This action came as Washington launched retaliatory strikes against Iran on Tuesday in what it called a proportional response to the shooting down of a US helicopter gunship near the Strait of Hormuz a day earlier.Iran’s state television reported that explosions and air defense sirens were heard in several cities along Iran’s Persian Gulf coast, including the city of Sirik and the island of Qeshm. Two Iranian officials stated that the airstrikes had targeted military…
The Dow Jones Industrial Average (DJIA) spent Tuesday proving that a one-day bounce is not the same as a bottom. Futures pushed higher through the overnight and premarket sessions, carried by a rebound in semiconductors and a softer Crude Oil tape, climbed into the early afternoon, then ran straight into a wall. From a session high near 51,250 the index unwound roughly 820 points to a low around 50,450 before steadying close to 50,500, leaving the day’s rally as little more than a round trip. For an index that owns almost none of the chip names doing the heavy lifting…
MUFG’s Lee Hardman notes that the US Dollar has stalled after the Dollar Index met resistance near 100.00 as Middle East tensions between Iran and Israel eased and Oil prices retreated toward USD90. However, he highlights that a hawkish repricing of Fed rate expectations, ahead of key US CPI data and the June FOMC meeting, continues to underpin the Dollar.Fed outlook and geopolitics steer USD”The US dollar lost upward momentum yesterday after the dollar index ran into resistance at the 100.00-level.””Nevertheless, the US dollar is still continuing to derive more support from the recent hawkish repricing of Fed rate hike…
The Indian rupee closed stronger on Tuesday on a fall in oil prices, with expectations that regulatory measures will help India narrow its balance of payments deficit chipping away at the currency’s bias towards persistent weakness.The rupee closed at 95.35 per dollar, up 0.4% from its close in the previous session.Asian currencies were mostly stronger as well, helped along by a drop of about 2% in Brent crude prices after Iran and Israel said on Monday that they had halted attacks on each other after an appeal from U.S. President Donald Trump.Tehran has continued to block most shipping through the…
Rabobank’s Global Strategist Michael Every notes that Oil prices were little changed after another sharp Middle East escalation involving Israel and Iran, as markets reverted to an ‘as you were’ stance. Every highlights that the conflict’s ultimate path, especially involving Hezbollah and Iran’s decisions, will be crucial for future energy pricing and broader market sentiment.Energy markets watch Middle East risks”After yet another Middle East rollercoaster for markets it’s now ‘as you were’, with oil –so everything else– little changed.””That dynamic has huge implications for when and how this war ends, so for energy, so for markets.””In the background, Yemen’s Houthis…