Author: admin
The Indian rupee firmed slightly on Tuesday as hopes of diplomacy between the U.S. and Iran pulled the brakes on an oil rally that had driven the currency to a two-month low.Traders are also paying close attention to the scale of inflows that India’s capital flow measures would attract over a period to bolster India’s FX kitty that is used to defend the rupee.On Tuesday, the Indian currency rose 0.2% to 96.2350 against the U.S. dollar.Oil prices declined by over 1% before turning higher again as markets weighed reports of mediation efforts between the U.S. and Iran against an exchange…
The Indian rupee firmed slightly on Tuesday as hopes of diplomacy between the US and Iran pulled the brakes on an oil rally that had driven the currency to a two-month low.Traders are also paying close attention to the scale of inflows that India’s capital flow measures would attract over a period to bolster India’s FX kitty that is used to defend the rupee.On Tuesday, the Indian currency rose 0.2% to 96.2350 against the US dollar.Oil prices declined by over 1% before turning higher again as markets weighed reports of mediation efforts between the US and Iran against an exchange…
MUFG’s Michael Wan notes that disruptions in the Strait of Hormuz have shifted more Middle East Oil flows toward the Red Sea and Bab el-Mandeb, increasing vulnerability to regional conflict. While Houthi threats and potential rerouting via Suez and Cape of Good Hope could lift transport costs, MUFG still expects Oil prices to stay below earlier conflict highs if a resolution eventually emerges.Red Sea vulnerabilities and price risks”In particular, the Houthis said they will impose a maritime blockade on Saudi Arabia in response to what they say is Saudi Arabia’s siege of the Yemeni capital. This led to the Saudi…
Rupee weighed down by spike in crude oil prices and safe haven demand for the dollar | Photo Credit: Yohaan Ashish Varghese _12194 The rupee depreciated 6 paise to 96.42 against the US dollar in early trade on Tuesday as heightened geopolitical uncertainty put pressure on most Asian currencies, including the rupee.Forex traders said the rupee came under pressure from a combination of factors — crude oil prices climbed on renewed geopolitical tensions, and demand for the US dollar increased as investors moved toward safe-haven assets.At the interbank foreign exchange market, the rupee opened at 96.41 then touched 96.42, registering…
Gold (XAU/USD) regains positive traction following the previous day’s two-way price moves, though it struggles to capitalize on the move and trades below the $4,050 level during the Asian session on Tuesday. Despite a cycle of tit-for-tat strikes between the US and Iran, US Secretary of State Marco Rubio said on Sunday that the US was still open to holding talks with Iran, keeping hopes alive for a potential diplomatic resolution to the conflict. This holds back the US Dollar (USD) bulls from placing fresh bets, which, in turn, is seen as a key factor supporting the commodity.Investors, however, remain…
Mumbai: The Indian rupee retreated to a two-month low of 96.52 to a dollar Monday despite what dealers described as significant central bank interventions, as a steep rise in crude oil prices over the past 10 days stoked inflation concerns in an economy heavily reliant on Gulf-routed energy supplies.The rupee, which had touched a lifetime low of 96.96 to a dollar late May during the peak of the West Asia crisis, ended Monday at 96.45, with the Reserve Bank of India (RBI) selling dollars at lower levels for the rupee to prevent its rout, market participants said.”The market’s focus will…
OCBC strategists Sim Moh Siong and Christopher Wong expect USD/SGD to remain largely driven by broader US Dollar (USD) direction and risk sentiment, after recent rangebound trading around the low‑1.29s. With Singapore Consumer Price Index (CPI) due on 23 July and the Monetary Authority of Singapore (MAS) review likely the following week, their house view is for MAS to stay on hold while monitoring inflation against still‑elevated energy prices.Range trade ahead of MAS decision”USD/SGD remained largely rangebound around the low-1.29s, with the USD pullback post-US CPI failing to extend as geopolitical re-escalation and AI-selloff crimped sentiment.””This week, focus shifts to…
AUD/USD trades around the 0.7000 area on Monday, holding near recent highs after recovering from last week’s decline. The Australian Dollar (AUD) remains supported by limited US Dollar (USD) demand, although rising geopolitical risks and slightly higher US Treasury yields are restricting the pair’s upside.In China, the People’s Bank of China (PBOC) left its benchmark lending rates unchanged for a fourteenth consecutive month. The one-year Loan Prime Rate, which influences most corporate and household loans, remained at 3.00%, while the five-year rate, commonly used to price mortgages, was maintained at 3.50%. The expected decision had a limited immediate impact on…
The Reserve Bank of India’s concessional swap facility has attracted USD 20.72 billion in foreign currency inflows till July 17, with FCNR(B) deposits contributing over USD 17.4 billion. | Photo Credit: DANISH SIDDIQUI The Reserve Bank on Monday said its concessional swap facility, introduced to encourage foreign currency inflows, has attracted USD 20.72 billion till July 17.The swap facility has seen avid interest and attracted steady forex inflows since June 8, 2026, the central bank said in a statement.A strong mobilisation was witnessed through Foreign Currency Non-Resident (Bank) or FCNR (B) deposits.Of the total inflows, FCNR (B) deposits accounted for…
The Euro (EUR) trades marginally lower to near 1.1432 against the US Dollar (USD) during the European trading session on Monday. The major currency pair edges down as the US Dollar recovers its early losses.At press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally higher to near 100.77.The Greenback bounces back even as oil prices have retreated amid hopes of de-escalation in ongoing military aggression between the United States (US) and Iran. Higher oil prices de-anchor inflation projections that prompt Federal Reserve (Fed) interest rate expectations, a scenario that is favorable…