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The National Bank of Hungary is likely to leave rates unchanged today at 6.50% in line with market expectations, ING’s FX analyst Frantisek Taborsky notes. Weakness in HUF is likely to fade”The central bank is expected to confirm the hawkish message from the last meetings and perhaps increase the amount of hawkishness, given some upside inflation surprises and the current developments in the Middle East, which clearly threaten FX and price stability in Hungary. The new forecast will also be in the spotlight, where we are likely to see a worse outlook for the economy this year and next.””The market…
A relief rally is boosting the Euro and crushing the safe-haven US Dollar.A sharp decline in Oil prices is giving additional support to the common currency.EUR/USD has broken the top of a bullish flag formation and aims for 1.1630 and 1.1700.The EUR/USD pair is rallying on Tuesday, following a significant rebound on Monday after US President Donald Trump announced a “complete and total ceasefire” between Israel and Iran. The common currency has jumped about 1.30% from Monday’s lows to reach levels right above 1.1600 at the time of writing, at a short distance from the year-to-date high of 1.1630.Israel and…
| Photo Credit: Atstock Productions The ongoing geopolitical tensions are unlikely to put a “significant pressure” on the rupee or inflation as global energy prices are lower than last year, which will limit current account outflows and domestic energy price pressures, S&P Global Ratings said on Tuesday. S&P Global Ratings Economist Vishrut Rana said a key mitigating factor of India is that energy prices are still lower than last year — Brent crude oil traded at roughly $85/barrel a year ago and current prices are still lower. “This will help contain both current account outflows and domestic energy price pressures…
The rupee rose sharply by 65 paise to 86.13 against the US dollar in early trade on Tuesday as crude oil prices fell following hopes of a ceasefire between Iran and Israel. A weak greenback and a strong opening in the domestic equity markets further boosted the rupee, according to forex traders. Brent crude, the global oil benchmark, declined 2.73 per cent to $69.53 per barrel in futures trade as US President Donald Trump announced that Iran and Israel were close to a ceasefire. At the interbank foreign exchange, the local unit opened at 86.07 against the US dollar before…
The Dow Jones Industrial Average (DJIA) pulled back from Monday’s early gains after news outlets reported that accelerating Middle East conflicts took a turn early this week. According to early reporting, Iranian militants have launched a rocket strike targeting the Al-Asad Airbase, which is jointly operated by the US Air Force and the Iraqi Air Force.Iran is poised to lash out at US military assets in retaliation for US President Donald Trump ordering targeted missile strikes against Iranian nuclear facilities without congressional approval over the weekend. The action by the Trump administration marks a sharp reversal in Trump’s campaign promises…
,Indian Rupee trims early losses after safe-haven flows lifted the Dollar on US strikes against Iranian nuclear sites.USD/INR climbed close to the psychological 87.00 level before reversing as mixed US PMI data capped Dollar strength.US PMI data painted a mixed picture — the Composite PMI dipped slightly to 52.8, the Services PMI eased to 53.1 from 53.7, while the Manufacturing PMI held steady at 52.India’s Composite PMI jumps to 61.0, beating forecasts and signaling robust economic momentum.The Indian Rupee (INR) kicked off the week on a softer note, weakening against the US Dollar (USD) on Monday as investors flocked to…
LME Copper convenience yields are now reflecting critically low inventories, TDS’ Senior Commodity Strategist Daniel Ghali notes. Copper’s tension builds”Metal has flowed out of the system over the last months, reflecting increased competition for physical Copper from both China and the United States.””We highlighted that metal must make its way back into the system to prevent fears of a stock-out from reemerging, and while tom-next is now trading close to the LME’s capped rate, interestingly, the largest traders in Shanghai have increasingly sold their Copper positions concurrently with a decline in Chinese premiums.” “Shanghai Copper traders also remained on the…
The central banks of India and Malaysia have reduced the size of some derivatives positions they use to weaken their currencies. Taiwan has allowed its currency to surge against the dollar in recent weeks and dropped hints it would be comfortable with more if the moves were “orderly.” South Korea’s giant national pension fund has ended its five-month support of the won.A major reason for these moves is a simple change in the market landscape: The dollar has tumbled more than 7 per cent this year, easing pressure on emerging market currencies. But strategists and investors also point to the…
The rupee plunged 23 paise to close at a five-month low of 86.78 (provisional) against the US dollar on Monday amid a strengthening dollar and volatile crude oil prices following the US strike on Iran’s nuclear facilities. A sharp decline in the domestic equity markets further pressured the rupee, according to forex experts. However, strong FII inflows, along with a rise in the country’s forex reserves prevented further losses in the rupee, they said. At the interbank foreign exchange the rupee opened at 86.75 against the greenback and traded in the range of 87.67 to 86.85 before settling at its…
India’s foreign exchange reserves provide a crucial cushion against geopolitical turmoil, inflation, and currency pressure, says RBI member. | Photo Credit: iStockphoto India’s $700 billion in foreign exchange reserves gives the economy a crucial cushion against rising geopolitical turmoil, a member of India’s rate-setting panel said, as hostilities in the Middle East continue to deepen. Ram Singh, an external member of the monetary policy committee with the Reserve Bank of India, said in an interview with the Economic Times newspaper that he expects the country’s foreign-exchange buffer to help blunt the impact of inflation caused by rising crude and fertilizer prices. However,…