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Gold eases after a four-day rally with prices stalling below $3,400 as bulls faced key resistance.US Treasury yields rise modestly, with the 10-year yield climbing from a three-month low ahead of the debt auction.US President Donald Trump revives tariff threats, targets pharma, semiconductors, India and Russia.Gold (XAU/USD) edges higher on Wednesday after rebounding from an intraday low of $3,358, supported by a weaker US Dollar and subdued Treasury yields. At the time of writing, Gold is trading around $3,380 during American trading hours, though it continues to move within its broader weekly range, with bulls still struggling to clear the…

Neel Kashkari, the President of the Minneapolis Fed, suggests that there could be two rate cuts this year due to the current slowdown in the US economy.Key QuotesThe economy is slowing.Still not clear what impact tariffs will have on inflation.It may still be appropriate in the near term to begin adjusting the policy rate.The Fed needs to respond to the slowing economy.Will not know the answer to inflation for a while; meanwhile, data on slowing is clear.Two rate cuts this year still seem appropriate.If inflation does rise because of tariffs, the Fed could pause or even hike.The unemployment number is…

The Canadian Dollar strengthens modestly against the US Dollar, with USD/CAD hovering around 1.3750.Fitch Ratings warns of a weaker Canadian consumer outlook amid labor market and trade headwinds.The BoC is expected to cut rates to 2.25% by year-end, but elevated core inflation clouds the outlook.The Canadian Dollar (CAD) is trading with a mild bid tone against the US Dollar (USD) on Wednesday, albeit within a narrow range, as the Greenback remains on the defensive but holds firm near the lower end of its range established following last week’s Nonfarm Payrolls (NFP) report.A subdued US Dollar, a mildly supportive risk tone,…

The rupee recovered from record low level and closed 15 paise higher at 87.73 (provisional) against the US dollar on Wednesday, supported by a volatile greenback and the Reserve Bank’s decision to hold interest rate steady.However, increasing crude oil prices, negative domestic equity markets, and uncertainties around the US tariff on India restricted gains in the local unit, according to forex traders.At the interbank foreign exchange, the domestic unit opened at 87.72 and moved in a range of 87.63-87.80 during the day before settling at 87.73 (provisional), up 15 paise from its previous close.The rupee revisited its lowest-ever intra-day level…

The Indian rupee edged higher on Wednesday, helped by the central bank keeping its key rate steady, though impending higher tariffs on shipments to the United States are likely to keep the currency under pressure. The rupee closed at 87.7325 against the U.S. dollar, up 0.1% from 87.8000 on Tuesday. The Reserve Bank of India’s six-member rate-setting panel voted unanimously to hold the repo rate at 5.50% and maintain a “neutral” policy stance, even as economists expect steep U.S. tariffs on Indian goods and subdued inflation to open room for limited further easing.India faces the imposition of a 25% tariff…

This marks a decline of $9.3 billion from the previous week | Photo Credit: MicroStockHub India’s foreign exchange reserves fell by more than $9 billion last week, likely reflecting the central bank’s efforts to shore up the rupee amid U.S. threats of steep tariffs on the Asian nation’s exports.Reserve Bank of India Governor Sanjay Malhotra said in his monetary policy statement on Wednesday that India’s foreign exchange reserves stood at $688.9 billion as of August 1, which marks a decline of $9.3 billion from the previous week.The fall was likely driven by the RBI’s dollar sales to support the rupee,…

The Indian rupee inched up on Wednesday, notching small gains before the central bank’s policy decision, set against the backdrop of fresh trade frictions with the United States. The rupee was quoted at 87.74 against the U.S. dollar at 09:42 am IST, up from 87.80 on Tuesday. The Indian currency recovered despite losses in most Asian peers. “At these levels, the rupee will move on its own momentum and today’s decision adds another layer,” a currency trader at a private bank said.”Markets are firmly positioned for no change in rates, especially after U.S. tariff developments. A rate cut now would…

Central bank has reiterated that while the approval requirement has been done away with, banks must continue to adhere to all existing norms and due diligence procedures | Photo Credit: FRANCIS MASCARENHAS In a significant move aimed at further facilitating trade in Indian Rupees, the Reserve Bank of India (RBI) has simplified the procedure for opening Special Rupee Vostro Accounts (SRVAs). As per the revised guidelines issued on Tuesday by the Central Bank, Authorised Dealer (AD) banks will no longer be required to seek prior approval from the central bank for opening SRVAs of correspondent foreign banks. The RBI said…

The Indian rupee extended losses for a third consecutive session on Tuesday, closing at a fresh record low of 87.80 per dollar.The persistent weakness reflects sustained dollar demand from oil companies and importers, coupled with continued foreign portfolio investor (FPI) outflows from Indian equities, triggered by heightened trade tensions after US President Donald Trump threatened increased tariffs on Indian goods.The local currency closed 15 paise lower compared to Monday’s close of 87.65Ahead of the market open, the rupee traded weaker near 88 per dollar in offshore non-deliverable forwards (NDF). However, intervention by the Reserve Bank of India, through dollar sales,…

The US ISM Services PMI missed consensus in July.The US Dollar clings to its daily gains on Tuesday.Data from the Institute for Supply Management (ISM) showed the Services PMI receded to 50.1 in July, down from 50.8 in the previous month and falling behind analysts’ forecasts of 51.5. Meanwhile, the Prices Paid Index—which tracks inflation—advanced to 69.9 from 67.5, the Employment Index ticked lower to 46.4 from 47.2, and the New Orders Index deflated to 50.3, from 51.3.Market reactionThe Greenback maintains its upbeat performance on Tuesday, motivating the US Dollar Index (DXY) to add to Monday´s bounce and trade at…