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The rupee traded almost flat at 88.78 in the early session on Friday, hovering near all-time lows against the US dollar due to a stronger greenback in the overseas markets. Forex traders said the rupee is expected to trade in a narrow range with a chance of breaking the all-time closing low level of 88.80 in the absence of RBI intervention. At the interbank foreign exchange market, the rupee opened lower at 88.80 but soon recovered to touch 88.78 against the US dollar, registering a gain of 1 paise from its previous close. On Thursday, the rupee closed at 88.79…

The rupee was last at 88.79, just shy of its all-time low of 88.80 hit last week. | Photo Credit: FRANCIS MASCARENHAS The Reserve Bank of India likely intervened in both the non-deliverable forwards (NDF) and local spot market to support the rupee on Friday as the South Asian currency was pinned near its all-time low.Two traders told Reuters that the central bank had likely stepped in the NDF market before the local spot market opened at 9 a.m. IST while three other flagged that state-run banks were offering dollars in the local spot market, most likely on behalf of…

Citing a Trump administration official, the New York Times reported on Friday that the US Bureau of Labor Statistics (BLS) is calling back a limited number of staff from furlough to complete the September Consumer Price Index (CPI) report, despite the ongoing government shutdown.“The decision reflects the importance of September inflation data in determining the annual Social Security cost-of-living adjustment (COLA), which is calculated using third-quarter CPI figures. A prolonged delay would risk postponing the COLA announcement that affects millions of retirees,” the NY Times reported.However, the inflation data is unlikely to be released on October 15, as originally scheduled.The…

GBP/USD accelerated into the bearish side on Thursday, falling nearly eight-tenths of one percent and sending Cable bids into the 1.3300 handle for the first time since early August. Broad-market investor sentiment is beginning to crumble amid the ongoing US government shutdown, which shows no signs of slowing.The US government’s ongoing shutdown has officially extended past the one-week mark, reaching its ninth day on Thursday. Investors initially showed little to no reaction to the shuttering of federal services, but market apprehension is slowly on the rise as the US Senate shows no signs of progress. Senate Republicans have rejected multiple…

GBP/USD tumbles during the North American session on Thursday as the US Dollar reaches a 9-week high, as depicted by the US Dollar Index (DXY), hitting 99.51 as hedge funds increase bets on USD gains towards the year-end. At the time of writing, the pair trades at 1.3314, down 0.67%, its lowest level since August 6.Sterling sinks as strong US Dollar momentum and fiscal worries pressure PoundUS equities turned negative in the day, boosting the US Dollar, which is registering weekly gains of over 1.63% as of writing. A Bloomberg article reported that “Funds in Europe and Asia have ramped…

The Pound Sterling (GBP) extends its losing streak for the third trading day against the US Dollar (USD) on Thursday. The GBP/USD pair slides to near 1.3365 as the US Dollar Index (DXY) rebounds after a slight corrective move.In the European session, the DXY, which tracks the Greenback’s value against six major currencies, bounces back to near the two-month high of 99.00 after correcting to near 98.70.Three-week-long rally in the US Dollar faced slight selling pressure after the release of the Federal Open Market Committee (FOMC) minutes on Thursday of the September policy meeting, which stated that officials were confident…

The rupee traded with a slight negative bias and hovered near its all-time low levels before settling for the day at 88.79 against the US dollar, lower by 4 paise on Thursday, as strong greenback demand and ongoing trade tensions between India and the US weighed on investor sentiments.Forex traders said the USD/INR pair is trading in a tight range as absence of economic data from US amid the government shutdown may also lead to consolidation.At the interbank foreign exchange, the rupee opened at 88.76 against the greenback and fell to an intraday low of 88.79 and a high of…

NZD/USD extends its losses for the third successive session, trading around 0.5770 during the Asian hours on Thursday. The pair depreciates as the US Dollar (USD) gains ground ahead of the speech by Federal Reserve (Fed) Chair Jerome Powell due later in the day.However, the Greenback may face challenges as the latest Federal Open Market Committee (FOMC) Minutes from the September meeting suggested policymakers are leaning toward further rate cuts this year. The CME FedWatch Tool suggests that markets are now pricing in a 92.5% chance of a 25-basis-point Fed rate cut in October and an 78% possibility of another…

The rupee traded in a narrow range and fell 3 paise to 88.78 against the US dollar in early trade on Thursday, as investors are watching US fiscal developments, trade tariff issues and FPI trends for further cues. Forex traders said all positive trends in domestic equities supported the rupee at lower levels. At the interbank foreign exchange market, the rupee opened at 88.76 and then lost ground to touch 88.78 against the US dollar, registering a decline of 3 paise from its previous close.On Wednesday, the rupee closed at 88.75 against the greenback. The Indian rupee is expected to…

The expanded intervention comes at a time when rupee is charting fresh lows against the dollar, weighed down by record outflows from local stocks and concerns over punitive US tariffs. India’s central bank has stepped up its interventions in offshore currency markets to defend the beleaguered rupee, according to people familiar with the development. The Reserve Bank of India has built up short dollar positions of at least $15 billion in the non-deliverable forwards market over the past two to three weeks, the people said, asking not to be identified discussing private matters. That marks a firm return to a segment in…