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The rupee logged its sharpest fall since late-July on Tuesday, pressured by a third straight day of rising oil prices that pushed Brent to near $100 a barrel as the ongoing Iran war deepened worries over sustained energy supply disruptions.On the day, tensions rose following attacks by Yemen’s Iran-aligned Houthis on some energy facilities in Saudi Arabia and as Tehran threatened the United States with “economic warfare”.Singed by the pressure, the rupee declined to 94.8175 per dollar by the end of the session, down 0.35% from its previous close.Traders said the dollar sales from state-run banks, most likely on behalf…
While the Reserve Bank of India’s special swap facility shields banks from FX risk on the deposits’ principal amounts, interest payments need to be managed by lenders independently. | Photo Credit: bl-online Administrator Indian banks have left much of their future interest payments on overseas FX deposits unhedged, creating a source of potential dollar demand that could compound depreciation pressure in a rupee-weakening scenario, five bankers said.Lenders have raised more than $127 billion in such deposits since the central bank introduced them as part of one-off measures to strengthen India’s balance of payments in the face of surging oil prices…
The US Dollar (USD) recovers its early losses and turns marginally positive during the European trading session on Tuesday. At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades marginally higher to near 98.95. US Dollar Price Today The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar. USDEURGBPJPYCADAUDNZDCHFUSD0.07%0.08%-0.32%-0.12%0.12%0.56%0.15%EUR-0.07%0.00%-0.39%-0.19%0.03%0.49%0.07%GBP-0.08%-0.00%-0.42%-0.20%0.03%0.50%0.08%JPY0.32%0.39%0.42%0.24%0.47%0.94%0.51%CAD0.12%0.19%0.20%-0.24%0.23%0.69%0.28%AUD-0.12%-0.03%-0.03%-0.47%-0.23%0.47%0.05%NZD-0.56%-0.49%-0.50%-0.94%-0.69%-0.47%-0.41%CHF-0.15%-0.07%-0.08%-0.51%-0.28%-0.05%0.41% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked…
Silver price (XAG/USD) is up 1.25% to near $67.00 during the Asian trading session on Tuesday. The white metal strengthens as the US Dollar (USD) and United States (US) Treasury Yields come under pressure, with investors shifting their focus to the Consumer Price Index (CPI) data of August scheduled for Friday.As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.1% lower to near 98.83 even after recovering some of its early losses. 10-year US Treasury Yields are down 0.17% to near 4.77%.Lower US bond yields result in an improvement in the…
Gold price (XAU/USD) drifts lower to near $4,410 during the early Asian session on Tuesday. The precious metal extends the decline as a stronger-than-expected US Nonfarm Payrolls (NFP) report for August bolsters expectations for a Federal Reserve (Fed) interest rate hike this month.Data last week showed that US NFP climbed by 162K in August, versus an upwardly revised rise of 21K prior, above the market consensus of 56K. Meanwhile, the Unemployment Rate in the US held steady at 4.1% during the same period.Traders see a 60% odds of an interest rate hike at the Fed’s policy meeting next week, compared…
Indian companies, including the operating company of Indigo and Tata Capital, filed proposals worth $7.70 billion in July to raise money through external commercial borrowings (ECB), registering a 27% growth over the previous month, data from the Reserve Bank of India (RBI) showed.The surge in overseas borrowing plans follows the RBI move to ease the ECB framework, which increased the borrowing cap to $1 billion from the earlier $750 million in a year and removed restrictive all-in-cost ceilings.The central bank had eased the regulations in February.Air India and Interglobe Aviation, which operates India’s largest passenger airline Indigo, together filed proposals…
NZD/USD trades around 0.5880 on Monday at the time of writing, posting a modest 0.06% decline on the day after two consecutive days of gains. The New Zealand Dollar (NZD) struggles to extend its rebound as investors remain cautious about the Reserve Bank of New Zealand’s (RBNZ) monetary policy outlook.Caution surrounding the path of New Zealand interest rates continues to weigh on the Kiwi, despite the RBNZ’s decision to raise its policy rate for a second consecutive meeting. Investors appear reluctant to price in a more aggressive monetary tightening cycle, limiting the NZD’s appreciation potential.Meanwhile, the downside in NZD/USD remains…
ING’s Chris Turner notes that resilient global equities and an above-consensus US jobs report mean the Dollar should be stronger, but risk appetite is capping gains. He highlights upcoming US CPI and Treasury auctions as key catalysts. ING expects higher energy prices and under-priced Fed tightening to keep DXY supported near term around the 99.00 area.Dollar support from Fed repricing”High energy prices and an above-consensus August NFP reading mean the dollar should really be doing better than it is. The fact that it is not probably owes to the still constructive investment environment, where global equity markets, including emerging markets,…
The rupee fell 7 paise to close at 94.50 (provisional) against the American currency on Monday as surging crude oil prices and global headwinds offset the support from strong FCNR dollar inflows.Forex traders said the rupee saw modest gains in initial trade on foreign inflows, but a negative trend in domestic equities and rising crude oil prices weighed on investor sentiment.At the interbank foreign exchange market, the rupee opened at 94.40 against the US dollar. During the day, the local unit touched an intraday high of 94.38 and a low of 94.50. The rupee finally settled at 94.50 (provisional), down…
Eurozone’s Sentix Investor Confidence data, a key indicator of Investor morale, comes in significantly higher at 5.1 in September from 0.9 in August. The sentiment data turned positive in August after remaining negative in the previous five months. Source