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Fresh hostilities in West Asia kept the Indian currency under pressure, causing it to decline 0.3% Wednesday, nearly matching the 0.35% fall a day earlier.The rupee closed at 95.11 to a dollar, against the previous close of 94.82 against the greenback, as the market turned cautious with the Brent crude hovering over $100 a barrel, traders said.“The intensified military actions involving the US, Iran and regional proxies have heightened the oil supply anxiety. The shipping choke points are threatening the global crude flows,” said NS Ramaswamy, head of commodities, Ventura.The currency weakened to 95.23 intra-day, while the Reserve Bank of…
Private-sector hiring in the US has gained some pace in late August. According to the NER Pulse, the weekly companion to the ADP National Employment Report, companies added an average of 12K jobs per week in the four weeks ending August 22.That marks a modest rebound from the prior reading (10K), showing some extra recovery in hiring.Market reactionThe Greenback remains under pressure, trading at the lower end of its recent range. That said, the US Dollar Index (DXY) is challenging the area of four-month troughs around 98.60, building on recent losses. Employment FAQs Labor market conditions are a key element…
ING’s Chris Turner describes EUR/USD near 1.1600 as mid-range since April, noting Euro terms-of-trade deterioration should weigh more on the pair. ING expects a dovish ECB hike that fails to validate additional tightening priced by markets. With a quiet Eurozone calendar, they see limited justification for a break above 1.1640/45 and prefer a 1.15 end-September target after a Fed hike.Euro holds but upside seen limited”Near 1.1600, EUR/USD is sitting approximately in the middle of its range seen since April. As above, we would have thought that the clear decline in the euro’s terms of trade would be an important factor…
The Indian rupee fell past 95 per dollar on Wednesday, with rising oil prices undoing the central bank’s recent efforts to prop up the currency.The rupee opened weaker and remained under pressure through the morning session, breaching the 95-per-dollar level with little resistance to drop to a low of 95.2250.The past two sessions have been something of a reality check for the rupee, bankers said.The central bank is said to have intervened almost daily to raise the currency toward 94.30 last week, but oil risks have returned to push back the South Asian unit.The rupee’s fall is “a reminder that…
The EUR/USD pair attracts fresh buyers during the Asian session on Wednesday, though it lacks bullish conviction and remains confined within the weekly range. Spot prices currently trade near the 1.1630 region, up around 0.05% for the day, as bulls opt to wait for the European Central Bank (ECB) meeting and crucial US inflation figures.A 25 basis point (bps) rate hike by the ECB on Thursday is considered a done deal, suggesting that the focus will be on the central bank’s outlook amid elevated inflation risks. Traders will then confront the release of the US Producer Price Index (PPI) and…
The Japanese yen steadied near its strongest level since February on Wednesday, keeping the dollar on the defensive as traders grappled with oil prices pushing towards $100 per barrel in the face of a widening war in the Middle East.Iranian-backed Houthis in Yemen launched strikes on several Saudi cities, further embroiling a U.S. ally in the over six-month-long conflict, while U.S. forces hit multiple Iranian oil tankers and Iran targeted a U.S. base in Jordan.That pushed Brent crude futures up over 1.48% to $99.37 per barrel, casting a shadow over global markets ahead of a U.S. inflation report on Friday…
US official said that US forces have struck multiple Iranian tankers tied to Iran’s Islamic Revolutionary Guard Corps (IRGC) in response to attempted missile attacks on a US warship, Bloomberg reported on Tuesday. US Central Command (CENTCOM) said in a statement that American forces struck the tankers in the Gulf of Oman and near Iran’s Kharg Island, adding that US forces “directed the crews to abandon ship before the vessels were struck.” CENTCOM stated the targeted tankers were “part of a multibillion-dollar shadow network that funds the IRGC and its regional proxies. IRGC warned that ships in Kuwaiti and Bahraini ports hosting…
USD/CAD rebounds on Tuesday after hitting an intraday low of 1.3760 and trades around 1.3790 at the time of writing, down 0.18% on the day. The Canadian Dollar (CAD) retains part of its gains against the US Dollar (USD), but risk aversion stemming from escalating tensions in the Middle East limits the Loonie’s advance despite higher Oil prices.Market sentiment remains fragile on Tuesday as prospects for a negotiated resolution to the Middle East conflict fade. Iranian authorities threatened on Monday to target energy infrastructure across the Gulf, including US Oil and Gas interests, in the event of further attacks against…
Rabobank’s Senior FX Strategist Jane Foley discusses how United Kingdom (UK) Chancellor Healey’s pro-growth rhetoric and commitment to fiscal rules have left questions over funding, with EUR/GBP still range-bound. Foley highlights the Pound’s vulnerability due to high foreign ownership of gilts and market pricing for Bank of England (BoE) rate hikes, expecting EUR/GBP to drift higher towards 0.87 over three months.Pound seen vulnerable to policy risks”While EUR/GBP did reach the lows of the day around the time that Healey wrapped up his presentation, the currency pair has stayed within the range drawn last Friday.””As we have pointed out before, the…
A blistering rally in the Japanese yen ahead of an expected interest rate hike from the Bank of Japan next week is upending the long-established and lucrative carry trade, as investors rethink the path ahead for the volatile currency.Early hints of capital repatriation and expectations of a faster pace of monetary tightening by the BOJ along with U.S. pressure are combining to boost the yen, which hit 40-year lows in July, triggering a joint U.S.-Japan intervention.The spike is also spurring an unwinding of the popular carry trade, which involves borrowing yen at a low cost to invest in other currencies…