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The rupee weakened for the third straight session, losing 39 paise to settle at 93.83 (provisional) against the US dollar on Wednesday as uncertainty on US-Iran peace talks eroded hopes of easing West Asia conflict and set crude oil prices on fire.Intense selling in domestic equity markets and sustained outflow of foreign capital also weighed on the Indian currency, forex traders said.At the interbank foreign exchange market, the rupee opened at 93.69 and touched an intraday low of 93.87 against the greenback during the session, nearing the 94 level it reached for the first time on March 23.The domestic unit…
RBI’s foreign exchange curbs prompted overseas investors to take profits in the South Asian country’s government bond market, sparking a selling cycle that sent borrowing costs to a two-year high, a top fixed-income official at the Nuvama Group said on Tuesday.India tightened rules for forex trading between late March and early April to support a rupee that fell to record lows as the Iran war pushed up oil prices, worsening the growth and inflation outlook for the net oil-importing country.The FX measures, now partially reversed, helped the rupee but led to a surge in the cost of hedging rupee exposure…
AUD/JPY inches higher after remaining flat in the previous session, trading around 114.10 during the Asian hours on Wednesday. The currency cross maintains its gains as the Australian Dollar (AUD) finds support from improving market sentiment after a Bloomberg headline, citing Tasnim News Agency linked with the IRGC, reported that Iran has received “some sign” the United States (US) may be willing to ease its naval blockade.Moreover, US President Donald Trump extended the ceasefire until tangible progress is achieved in negotiations between both sides, according to Bloomberg. The US blockade on Iranian vessels was in place after the second round…
The United Kingdom (UK) Office for National Statistics (ONS) will publish the high-impact Consumer Price Index (CPI) data for March at 06:00 GMT. The report could significantly alter market expectations about a Bank of England (BoE) interest rate hike later this year, ramping up volatility around the Pound Sterling (GBP), as traders brace for the impact of the energy shock from the Middle East war. What to expect from the next UK inflation report?The UK Consumer Price Index is expected to rise 3.3% year-over-year (YoY) in March, following a 3% increase in February. The reading is likely to come in above the…
TOKYO: The dollar steadied in early Asian trade on Wednesday, as skepticism over U.S. President Donald Trump’s announcement of an indefinite extension of a ceasefire with Iran lifted demand for the safe-haven currency, pushing it to a one-week high. On the policy front, Federal Reserve nominee Kevin Warsh’s comments at a Senate confirmation hearing were interpreted as slightly hawkish, while strong retail sales data provided an upbeat view on the strength of the American economy. The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, was steady at 98.415, its highest level since April 13.…
Gold price (XAU/USD) attracts some sellers to around $4,720 during the early Asian session on Wednesday. The precious metal falls as renewed Strait of Hormuz disruption stokes inflation concerns. Bloomberg reported on Wednesday that US President Donald Trump will extend the ceasefire with Iran until talks between the two countries have progressed. Trump’s announcement struck a markedly different tone from earlier in the day when he said, “I expect to be bombing” if Iran didn’t meet his conditions, adding the military was “raring to go.” Rising energy costs are stoking inflation fears, raising the bar for cutting rates. Gold is often used…
GBP/USD retreats on Tuesday, losing 0.18%, as the US Dollar (USD) recovers following a solid US Retail Sales report. Data in the UK showed the labor market remains solid, while traders digest headlines from the Federal Reserve (Fed) Chair nominee, Kevin Warsh, at the US Senate. At the time of writing, the pair trades at 1.3507, after reaching a daily high of 1.3539.Sterling eases despite firm UK jobs data and Warsh headlinesMarket mood is mixed, though US equities are positive, underpinned by strong earnings reports. Speculation about a possible end to the conflict between the US and Iran looms, yet…
United States (US) President Donald Trump said during late European trading hours on Tuesday, through a post on Truth Social, that Iran has violated the terms of the two-week ceasefire numerous times. Risk sentiment FAQs In the world of financial jargon the two widely used terms “risk-on” and “risk off” refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future,…
The rupee declined 32 paise to close at 93.48 (provisional) against the US dollar on Tuesday, weighed down by a steady American currency and volatile crude oil prices amid uncertainties over the progress of West Asia peace negotiations.Positive domestic equity markets failed to boost local currency, which also had some impact of the Reserve Bank’s latest move to ease curbs on speculative bets in non-deliverable forward markets, forex analysts said.The Reserve Bank on Monday partially withdrew directives taken on April 1 to curb excessive speculation in the rupee. The banking regulator had capped the net open positions in non-deliverable forward…
Gold (XAU/USD) sticks to intraday losses below the $4,800 mark through the first half of the European session on Tuesday, though it holds above a one-week low touched the previous day. Investors remain skeptical about a potential US-Iran agreement amid the standoff over the Strait of Hormuz. The US Navy seized an Iranian-flagged cargo ship in the Gulf of Oman as part of its blockade. In response, Iran once again closed the strategic waterway, which acts as a tailwind for Crude Oil prices. This, in turn, revives inflationary concerns and supports the US Dollar (USD), exerting pressure on the commodity.Any…