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US President Trump said that he would impose a 25% tariff on select semiconductors, including the Nvidia H200 AI processor and a similar semiconductor from AMD called the MI325X, Reuters reported on Wednesday.The proclamation, which cited national security as a justification, is part of a broader attempt to create incentives for chipmakers to produce more semiconductors in the United States and decrease reliance on chip manufacturers in other countries like Taiwan.Market reactionAs of writing, the AUD/USD pair is down 0.04% on the day at 0.6680. Tariffs FAQs Tariffs are customs duties levied on certain merchandise imports or a category of products.…

The RBI said the proposed guidelines are aligned with Basel Committee standards and aim for uniform implementation across regulated entities. | Photo Credit: The Reserve Bank on Wednesday proposed changes to rules governing banks’ foreign exchange positions.The amendments to net open position (NOP) were made following a comprehensive review of the existing instructions, according to an official statement.NOP refers to the difference between banks’ total foreign currency assets and liabilities, revealing their exposure to currency fluctuations or exchange rate risk.Alignment with Basel standardsThe proposed guidelines are more closely aligned with the Basel Committee on Banking Supervision (BCBS) standards, the RBI…

The British Pound (GBP) extends its gains on Wednesday as the Greenback is punished by investors due to threats to the Federal Reserve’s (Fed) independence and a verbal intervention by Japanese officials, which boosted the Yen. At the time of writing, GBP/USD trades at 1.3461, up by 0.30%.Sterling extends gains as political pressure on the Federal Reserve outweighs strong US data releasesThe US Dollar reversed course on Wednesday amid threats to the Fed’s independence from the Trump administration. On Sunday, Fed Chair Jerome Powell argued that the accusations are “pretexts” by the White House, which is unhappy that the central…

The USD/CAD pair trades flat around 1.3885 during the European trading session on Wednesday. The Loonie pair consolidates ahead of the United States (US) Producer Price Index (PPI) data for October and November, and the Retail Sales data for November.However, the impact of the data is expected to be limited as they are not the latest, and it seems unlikely to influence market expectations for the Federal Reserve’s (Fed) monetary policy outlook.According to the CME FedWatch tool, the Fed is certain to hold interest rates steady in the current range of 3.50%-3.75% in the policy meeting later this month.Meanwhile, the…

The rupee pared initial gains and settled for the day 6 paise lower at 90.29 (provisional) against the US dollar on Wednesday, as the likely central bank intervention was negated by a strong dollar, foreign outflows from capital markets, and elevated crude oil prices.Forex traders said the rupee is likely to trade with a negative bias on risk aversion in global markets and geopolitical tensions, however, rising odds of a rate cut amid softening inflation and any intervention by the central bank may support the rupee at lower levels.At the interbank foreign exchange, the rupee opened at 90.26 and touched…

EUR/JPY extends its winning streak for the fourth successive session and reaches fresh all-time highs, trading around 185.40 during the early European hours on Wednesday. The currency cross appreciates as the Japanese Yen (JPY) weakens amid mounting concerns over the country’s fiscal health and monetary policy concerns.Bloomberg reported on Wednesday that Bank of Japan (BoJ) Governor Kazuo Ueda said he remains prepared to raise interest rates if economic and price developments align with forecasts and wages and prices continue to rise moderately.However, a private survey showed manufacturing activity slowing due to trade frictions, while tourism-related disruptions are weighing on services,…

The rupee rebounded from low levels and gained 11 paise to trade at 90.12 against the US dollar in early deals on Wednesday, tracking lower crude oil prices and retreating American currency overseas. Domestic equity markets also showed resilience even as traders stayed cautious, watching geopolitical developments and awaiting US inflation numbers that are expected to provide cues for the Federal Reserve’s policy move, forex analysts said. At the interbank foreign exchange, the rupee opened at 90.26 and strengthened up to 89.94 level before trading at 90.12 against the greenback, 11 paise higher from the closing level of the previous…

On Tuesday, the rupee declined 6 paise to close at 90.23 against the US dollar. The rupee rebounded from low levels and gained 11 paise to trade at 90.12 against the US dollar in early deals on Wednesday, tracking lower crude oil prices and retreating American currency overseas.Domestic equity markets also showed resilience even as traders stayed cautious, watching geopolitical developments and awaiting US inflation numbers that are expected to provide cues for the Federal Reserve’s policy move, forex analysts said.At the interbank foreign exchange, the rupee opened at 90.26 and strengthened up to 89.94 level before trading at 90.12…

Silver price (XAG/USD) extends its winning streak for the fourth trading day on Wednesday. The white metal rallies further to near $90.00 during the Asian trading session as demand for safe-haven assets remains firm amid geopolitical tensions.Civil unrest in Iran as the general public demands political change due to surging inflation, falling Rial against the US Dollar (USD), and the government’s corruption has resulted in the killing of hundreds of protesters.In response, United States (US) President Donald Trump has warned the military action in Tehran if the government continues killing protesters.Meanwhile, higher concerns over Federal Reserve’s (Fed) independence, following criminal…

EUR/USD trades with losses on Tuesday even though the latest inflation in the United States was benign, hinting that the Federal Reserve could indeed reduce interest rates as priced in by the financial markets. At the time of writing, the pair trades at 1.1642, down by over 0.20%.Euro weakens despite benign US inflation, as firm jobs data and Fed rhetoric boost the DollarThe Greenback recovered some ground after the December Consumer Price Index (CPI) in the US was mostly aligned with estimates, with underlying inflation ticking a tenth lower on the annual print. This would justify rate cuts by the…