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The rupee’s valuation versus other major currencies calculated on a trade-weighted basis has fallen to its lowest in more than a decade, hit by the Iran war-driven surge in crude oil prices and chunky foreign portfolio outflows.The South Asian currency’s 40-currency real effective exchange rate, which accounts for inflation differentials between different economies, fell to 92.72, the Reserve Bank of India’s latest bulletin released late on Thursday showed.The REER is now hovering well below its long-run average of 98.25, pointing to a deeply undervalued rupee against historical norms.Relatively subdued inflation in India has weighed on the REER in recent months,…
The rupee stayed on a downward track for the fifth straight day, losing 24 paise to 94.25 against the US dollar in early trade on Friday, weighed by volatile crude oil prices and an elevated US dollar, with prospects of West Asia peace talks turning hazier.Analysts said that despite a ceasefire in place between the United States and Iran, ship movement through the Strait of Hormuz remained uncertain after the US military on Thursday seized another Iranian oil tanker, intensifying the standoff and unsettling the fuel prices worldwide.President Donald Trump has also ordered the US military to “shoot and kill”…
India’s chief economic adviser V. Anantha Nageswaran said the rupee is “fundamentally undervalued” and could offer an attractive entry point for long-term investors. | Photo Credit: VELANKANNI RAJ B India’s rupee is “fundamentally undervalued,” the country’s chief economic adviser said, adding that current levels could draw investors.“For long-term investors, the rupee’s current valuation provides an attractive entry point,” V. Anantha Nageswaran said in an interview Thursday. The rupee has been under pressure this week, with Brent above $100 a barrel. The currency has given up much of the gains fueled by the central bank’s recent measures to curb speculative arbitrage bets…
EUR/JPY inches higher after three days of gains, trading around 186.60 during Asian hours on Friday. The technical analysis of the daily chart indicates the currency cross is positioned slightly below the ascending channel, signaling potential for a bearish reversal.However, the EUR/JPY cross holds a constructive bullish bias as it remains above the 50-day Exponential Moving Average (EMA) while facing immediate friction at the nine-day EMA.Additionally, the 14-day Relative Strength Index sits around 58, comfortably above the midline yet below overbought territory, which suggests positive but not overstretched momentum that could favor further upside as long as the EUR/JPY cross…
Mumbai: The Reserve Bank of India turned a net buyer of $7.4 billion in February, compared with net sales of $2.4 billion in January, likely aided by a strengthening rupee following the announcement of the India-US trade deal in early February. The real effective exchange rate (REER)-a weighted average of the rupee against a basket of six major currencies-stood at 91.23 in March, down from 92.45 in February. A REER below 100 indicates that the currency is undervalued, supporting export competitiveness. Source
The yuan is on track to overtake the yen as the second-most traded currency against the dollar in the foreign-exchange options market, according to London-based clearing house LCH.The dollar-offshore yuan pair is likely to move to second place behind just the euro-dollar when the Bank for International Settlements releases its next triennial survey of foreign exchange and over-the-counter derivatives markets in 2028, said Andrew Batchelor, head of the clearing house’s unit LCH ForexClear.”Yuan internationalisation is real,” Batchelor said in an interview in Shanghai. “It’s not necessarily about replacing the dollar. It’s about diversifying currency usage. Markets want choice: the ability…
Mumbai: The rupee declined for the fourth straight session on Thursday after RBI rolled back its curbs on foreign exchange trade. The decline also comes as crude prices inched higher above the $100 per barrel mark.The unit closed at 94.11/$ on Thursday, versus its previous close of 93.87/$. The currency traded in a narrow 16 paise range between 94/$ and 94.16/$, with RBI likely selling dollars in the first half of the day, dealers said. Brent crude futures rose $1.47, or 1.4%, to $103.38 a barrel, settling above $100 for the first time in more than two weeks. Source
US military officials are developing new plans to target Iran’s capabilities in the Strait of Hormuz in the event the current ceasefire with Iran fails, CNN reported on Thursday.According to multiple sources familiar with the matter, the options, among several sets of target types under consideration, include strikes with a particular focus on “dynamic targeting” of Iran’s capabilities around the Strait of Hormuz, southern Arabian Gulf and Gulf of Oman.Market reactionAt the time of writing, the West Texas Intermediate (WTI) is up 3.80% on the day at $95.45. Brent Crude Oil FAQs Brent Crude Oil is a type of Crude Oil found…
Gold (XAU/USD) trims earlier intraday losses on Thursday as the US Dollar loses momentum, but gains remain capped amid higher-for-longer rate expectations fueled by Oil-driven inflation. At the time of writing, XAU/USD is trading around $4,730, after hitting an intraday low of $4,684. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is trading around 98.57 after hitting an intraday high of 98.80.Shipping disruptions in Hormuz sustain inflation fearsTensions in the Strait of Hormuz are rising as the route remains under a dual blockade by the US Navy and Iran. US…
USD/CAD trades around 1.3670 on Thursday, virtually unchanged on the day, as investors adopt a cautious stance ahead of the release of S&P Global PMI data in the United States (US). The pair remains in a consolidation phase, caught between support for the Canadian Dollar (CAD) from higher Oil prices and sustained demand for the US Dollar (USD) in a risk-averse environment.The Canadian Dollar, a commodity-linked currency, is supported by rising Oil prices amid heightened geopolitical tensions in the Middle East. West Texas Intermediate (WTI) US Oil is advancing for a fourth consecutive day, trading around $92.70 per barrel, driven…