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ING’s Frantisek Taborsky reports that surging Oil and gas prices triggered a sharp hawkish repricing of policy paths in Poland, the Czech Republic and Hungary, taking implied tightening back to stressed March–April peaks. While ING’s economists keep their rate forecasts unchanged, they see higher market rates offering some protection and helping stabilise CEE FX despite a stronger Dollar and risk-off sentiment.Hawkish repricing and fair-value levels”The CEE region was hit hard yesterday by the global rise in oil and gas prices, triggering a sharp repricing of implied policy-rate paths. In Poland and the Czech Republic, markets effectively added one extra hike,…
India’s forex reserves jumped by USD 1.08 billion to USD 676.237 billion during the week ended July 17, according to the RBI data released on Friday.In the previous reporting week, the overall forex kitty had jumped by USD 964 million to USD 675.157 billion.Forex reserves had expanded to an all-time high of USD 728.494 billion during the week ended February 27 this year before the onset of the Middle East conflict, which led to several weeks of a drop as the rupee came under pressure and the RBI had to intervene in the forex market through dollar sales.Prime Minister Narendra…
The rupee recovered 18 paise to close at 96.55 (provisional) against the US dollar on Friday amid likely intervention by the Reserve Bank of India (RBI).A combination of factors, including heightened tensions in West Asia, FII outflows, and sustained negative sentiments at the domestic equity markets, maintained pressure on the local unit, according to forex traders.At the interbank foreign exchange, the rupee opened weaker at 96.81 and traded in the range of 96.30-96.81 before eventually settling at 96.55 (provisional), up 18 paise from its previous close.The rupee ended 20 paise weaker at 96.73 against the US dollar on Thursday. The…
The rupee avoided a record low on Friday as the Reserve Bank of India likely intervened to ease pressure from high oil prices, weak domestic equities and renewed corporate hedging, traders said.State-run banks were seen selling dollars shortly before the market opened at 9 a.m. IST, likely on behalf of the Reserve Bank of India, five traders told Reuters on Friday.The selling continued through most of the session, pulling the rupee higher before it ended at 96.5625 per U.S. dollar, little changed on the day.Brent crude topped $100 a barrel for the first time in two months before retreating about…
RBI’s frequent but mild interventions earlier to curb sharp falls have also left traders struggling to gauge how much weakness policymakers could allow. | Photo Credit: FRANCIS MASCARENHAS The Reserve Bank of India likely intervened across market segments on Friday, seven traders told Reuters, stepping up defence of the currency as it threatened to breach record low levels pressured by surging oil prices.The central bank likely intervened in the dollar-rupee non-deliverable forward (NDF), onshore spot and forward markets as the rupee slid in the NDF market before local markets opened at 9 am IST.Right before the open, the currency was…
ING’s Warren Patterson and Ewa Manthey report that Gold has come under pressure as higher Oil prices stoke inflation concerns and push yields and the US Dollar higher. They note that safe-haven demand has been limited despite geopolitical risks, with recent gains driven mainly by dip-buying and short covering. The analysts see $4,000/oz as a key near-term support level.Higher yields and Dollar weigh on bullion”Gold fell as escalating tensions in the Middle East pushed energy prices higher, raising concerns that inflation could remain elevated and keep monetary policy restrictive for longer.””Despite ongoing geopolitical risks, gold has struggled to attract meaningful…
First Abu Dhabi Bank PJSC is offering funding up to $1.5 billion to non-resident Indians investing in their home country’s foreign-currency deposit program, according to people familiar with the matter.The United Arab Emirates’ largest lender is targeting customers based in the Middle East and is in talks with banks in India that could issue standby letters of credit to back the financing, the people said, asking not to be identified because the discussions are private. A standby letter of credit is a bank guarantee that ensures payment if the borrower defaults.The move by FAB alongside other foreign and Indian banks…
India’s central bank likely sold dollars on Friday, helping the rupee avoid a record low amid pressure from surging oil prices and weak stocks. State-run banks were spotted selling dollars just before the local market opened at 9 a.m. IST, most likely on behalf of the Reserve Bank of India, traders said. The selling continued in early trade, pulling the rupee up to 96.50 per U.S. dollar after it fell to 96.80 on the interbank order-matching system. The currency was up 0.1% from the previous session at 96.5725 at 10 a.m. IST. The rupee’s all-time low of 96.96 was hit…
The rupee rose 22 paise to 96.51 against the US dollar in early trade on Friday on likely RBI intervention to stem its further slide after global crude oil prices crossed the $100-mark owing to heightened tensions in West Asia.A softer greenback provided mild support to the local unit while FII outflows, coupled with sustained slide in the domestic equity markets, maintained pressure, forex traders said.At the interbank foreign exchange, the rupee opened weaker at 96.81 before rising to 96.51, up 22 paise from its previous close.The rupee ended 20 paise weaker at 96.73 against the US dollar on Thursday.The…
The AUD/JPY cross trades in positive territory around 114.25 during the early European trading hours on Friday. The Australian Dollar (AUD) strengthens against the Japanese Yen (JPY) on a strong Australian employment report for June. Australia’s Unemployment Rate stayed at 4.4% in June, according to the official data released by the Australian Bureau of Statistics (ABS) on Thursday. The figure came in line with the market consensus. Meanwhile, the Employment Change came in at 76.3K in June from a rise of 44K in May (revised from 40.3K), better than the forecast of a 15K increase.Nonetheless, fears of currency intervention from Japanese authorities could…