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NZD/USD extends its losses for the fourth successive day, trading around 0.5860 during the European hours on Thursday. The technical analysis of the daily chart shows the spot price moving sideways within a rectangle pattern, indicating a period of market consolidation and indecision.The NZD/USD pair is keeping a mild bearish bias as it holds beneath the short-term and medium-term Exponential Moving Averages (EMAs), clustering just above the spot as immediate overhead supply, suggesting rallies are likely to meet selling interest while price trades below this band.Momentum is soft, with the 14-day Relative Strength Index (14) hovering just under the 50…
USD/CHF halts its three-day winning streak, trading around 0.7910 during the Asian hours on Thursday. The pair depreciates as the US Dollar (USD) loses ground on easing risk aversion following the news that Israel and Lebanon on Wednesday agreed to renew a ceasefire. However, it would require a “complete cessation” of fire by Iran-backed Hezbollah. The agreement was announced in a joint statement after US-led talks in Washington.The Israel and Lebanon do not have formal diplomatic relations, though also agreed to establish several “pilot security zones” in which the Lebanese armed forces “will take exclusive control of the territory to…
The Indian rupee is seen opening slightly weaker on Thursday, pressured by equity outflows and soft Asian cues, while expectation around steps to support the currency may offer relief.The rupee is expected to open in 95.74-95.78 range, per traders, having settled at 95.7050 on Wednesday. After staging a brief relief rally to the 94.70 level, the currency has come under renewed pressure.A pickup in equity outflows and fading hopes of a U.S.-Iran detente have put the rupee back on the back foot. A prolonged war in the Middle East is a key risk for net energy importer India.Foreign investors pulled…
The dollar clung to its recent strength near a two-month high on Thursday as fresh Gulf hostilities sent oil prices higher and sapped risk appetite, while the Japanese yen hovered near the key 160 level that kept traders on intervention alert. Iranian attacks on Kuwait damaged its airport and injured dozens on Wednesday while the U.S. military carried out strikes near the Strait of Hormuz, straining a shaky ceasefire and dimming hopes for a diplomatic halt to the war. The euro stood at $1.1604, and the British pound traded at $1.3424, both largely flat so far in Asia.The risk-sensitive Australian…
Mumbai: The Indian rupee fell half a percentage point against the US dollar on Wednesday as a fusillade of Iranian missiles targeted Kuwait and Bahrain, indicating the fragility of the truce in the Gulf region and pushing currency bears to buy into the greenback’s promise of safety. The rupee declined to 95.70, pressured by higher oil prices, versus its previous close of 95.27. Brent futures gained $2.3, or 2.4%, to $98.30 as tensions erupted in West Asia and peace talks between Tehran and Washington showed little progress, according to Reuters.The rupee traded between 95.80 and 95.44 on Tuesday. “The currency…
Israel and Lebanon on Wednesday agreed to renew a ceasefire but said it would require a “complete cessation” of fire by Iran-backed Hezbollah. The agreement was announced in a joint statement after US-led talks in Washington.The two sides, which do not have formal diplomatic relations, also agreed to establish a number of “pilot security zones” in which the Lebanese armed forces “will take exclusive control of the territory to the exclusion of all non-state actors.”Market reaction At the time of writing, the West Texas Intermediate (WTI) is up 1.70% on the day at $93.25. WTI Oil FAQs WTI Oil is a…
The USD/JPY pair is trading just below the 160.00 price level on Wednesday, as the US Dollar (USD) remains supported by stronger-than-expected economic data, while the Japanese Yen (JPY) struggles to attract sustained demand amid a cautious market mood.The latest US ISM Services PMI rose to 54.5 in May from 53.6 in April, surpassing market expectations and pointing to stronger growth in the services sector. The report reinforced confidence in the resilience of the US economy and supported expectations that the Federal Reserve (Fed) may maintain a cautious approach toward interest rate cuts.Earlier in the day, Bank of Japan (BoJ)…
UOB economist Lee Sue Ann notes that softer Australian Gross Domestic Product (GDP), easing inflation and a cooling labour market have reduced pressure on the Reserve Bank of Australia (RBA) to tighten further. She expects the cash rate to be held at 4.35% through at least 1Q27, with domestic demand remaining a drag even as external demand for commodities offers some support.RBA seen on extended policy hold”Last month, the RBA lifted the cash rate by 25 bps to 4.35%, with an 8–1 vote, fully unwinding last year’s easing and reinforcing its commitment to curbing persistent inflation.””With softer GDP, easing inflation,…
The Indian rupee weakened on Wednesday, weighed by a jump in oil prices on renewed hostilities in the Middle East and weakness in local stocks while likely market intervention by the central bank capped losses.Towards the end of the trading session, the currency was also supported by a Bloomberg News report that said India plans to cut taxes for foreign bond investors and remove caps on the overseas ownership of some bonds.The rupee closed at 95.7050 per dollar, down 0.46% from its close of 95.2650 in the previous session.Oil prices rose nearly 3% on Wednesday, extending gains from the previous…
RBI and SEBI have tightened checks on overseas investments by firms and family offices, issuing at least 10 queries in the past three weeks to determine any potential misuse of the investment route, three sources with direct knowledge of the matter said to Reuters.The South Asian nation’s currency has come under sharp pressure from surging oil prices and foreign money outflows, prompting higher taxes on precious metal imports and calls to conserve foreign exchange.In a rare move over the past three weeks, the Reserve Bank of India (RBI) has sent at least 10 queries to ascertain whether funds were routed…