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In the calendar year so far, the rupee has depreciated about 5 per cent (or about 425 paise) against the US dollar  The rupee on Tuesday came within a whisker of the psychologically crucial 90-to-a-dollar mark, testing an all-time intraday low of 89.95 and closing at a record low of 89.87.The Indian currency (INR) is being buffeted by FPI selling in the equity market, importer demand, short-covering by speculators, delays in clinching the tariff deal with the US, the possibility of a repo rate cut, and reduced RBI intervention, among others.In the calendar year so far, the rupee has depreciated…

Immediate support lies at 89.65, with recovery possible only if the RBI intervenes near the 90 level. | Photo Credit: Reuters The Indian rupee declined to a new low of 89.95 against the dollar on Tuesday. Last week in this column, we said the rupee could consolidate between 89 and 89.60 for some time, then decline towards 90. But this fall has happened without seeing the consolidation. This indicates the RBI is continuing to stay out of the market without any intervention.The domestic currency has weakened over the past week despite the greenback’s weakness. The dollar index (99.45) has fallen…

EUR/USD remains range-bound near 1.1610, with support at 1.1500 and resistance at the 100-day moving average of 1.1644. Eurozone November CPI data reinforces the ECB’s on-hold stance, with headline inflation at 2.2% y/y and core CPI steady at 2.4% y/y, BBH FX analysts report. Eurozone inflation shows slight rise, ECB bias unchanged”EUR/USD is trading in a tight range around 1.1610. EUR/USD appears to have carved out a bottom at 1.1500, with next key resistance at 1.1644, the 100-day moving average.””The Eurozone preliminary November CPI supports the ECB’s on hold bias. Inflation is running slightly above the ECB’s 2% medium-term target.…

European Central Bank (ECB) policymaker Martin Kocher stated during the European trading session on Tuesday that the central bank should “keep powder dry and be able to react if needed”.Market reactionThe impact of the ECB Kocher’s comments appears to be insignificant on the EUR/USD pair. The major currency pair trades marginally higher around 1.1610 during European trading hours. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation…

The rupee depreciated 32 paise to an all-time low of 89.85 against the US dollar in early trade on Tuesday, weighed down by the broad strength of the American currency in overseas markets and persistent foreign fund outflows. Forex traders said strong dollar demand from corporates, importers and foreign portfolio investors pressurised the rupee. Moreover, elevated crude oil prices further dented investor sentiments. At the interbank foreign exchange, the rupee opened at 89.70 against the US dollar before dropping to record low level of 89.85 , down 32 paise from its previous close. On Monday, the rupee after sinking to…

The USD/CAD pair clings to Monday’s recovery move to near 1.4010 during the Asian trading session on Tuesday. The Loonie pair bounced back on Monday as the US Dollar (USD) rebounded despite weak United States (US) ISM Manufacturing Purchasing Managers’ Index (PMI) data for November strengthened the case for another interest rate cut by the Federal Reserve (Fed) this year.At the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades calmly near 99.40. The USD Index recovered on Monday after revisiting the monthly low around 99.00.The ISM showed that the Manufacturing PMI…

GBP/USD soured on Monday, starting off the December trading window declining around one-quarter of one percent, pushing back down from a key technical confluence region that will likely inspire further short selling behind the Pound Sterling (GBP) unless global flows into the US Dollar (USD) reverse course.Pound struggles under the weight of political troublesChancellor of the Exchequer Rachel Reeves has come under fresh fire regarding the state of the UK’s government budget. Chancellor Reeves stands accused of grossly misreprenting the true state of the UK’s finances. Chancellor Reeves has continued to advocate for “unavoidable increases” in budgetary taxes, despite the…

The GBP/USD post modest gains rise over 0.20% on Monday as investors grow confidence that the Federal Reserve might cut rates in the next week meeting, and traders prized in a possible nomination of the White House Economic Adviser Kevin Hassett to succeed Powell at the Fed. The pair trades at 1.3250, after hitting a daily low of 1.3205.Sterling advances in thin trading as weak US manufacturing data lifts rate-cut expectationsData from the US showed that business activity contracted for the ninth straight month in November, revealed the Institute for Supply Management (ISM). The ISM Manufacturing PMI dipped from 48.7…

Analysts said the market is positioning for a stronger dollar as the RBI remains heavily short in forwards and is adopting a “soft-touch” intervention strategy. The rupee hit a record low on Monday, weighted down by factors such as the RBI’s maturing positions in the non-deliverable forward (NDF) market, FIIs continuing to sell in the domestic equity markets and the trade deal with the US taking a long time to seal.Opening a tad stronger at 89.44 per US Dollar (USD), the Indian currency (INR) closed at an all-time low of 89.5475 per USD, down nine paise, against the previous close…

The US Dollar (USD) enters December under pressure, with markets heavily pricing in a Fed rate cut next week amid a softer labor market and the scheduled end of quantitative tightening, DBS’ Senior FX Strategist Philip Wee notes.USD eyes year-end weakness ahead of FOMC”The USD is entering the final month of 2025 with heavy expectations that the Fed will cut interest rates at next week’s FOMC meeting on December 10.” “US Labor Secretary Lori Chavez-DeRemer, Fed Presidents John Williams (New York) and Mary Daly (San Francisco) judged that the risks from a softening labor market outweighed the rationale for holding rates…