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The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.75, higher by 0.08 per cent. | Photo Credit: istock.com The rupee traded in a narrow range and fell 2 paise to 94.97 against the US dollar in early trade on Wednesday, amid renewed US-Iran tensions, higher oil prices and rising Treasury yields.Forex traders said the RBI is keeping a tab on the rupee’s fall as Brent crude prices have risen to $95 per barrel and dollar index is hovering around 99.70 on a bout of risk aversion on renewed US-Iran tensions.Moreover, market…
The USD/JPY pair touches a fresh high since July 31 on Wednesday, though it lacks follow-through buying and remains below 160.50 through the Asian session.The Japanese Yen (JPY) continues its relative underperformance on the back of fiscal concerns stemming from a surge in bond yields, which increases the cost of servicing Japan’s massive debt pile. The US Dollar (USD), on the other hand, climbs to a nearly three-week top as oil-driven inflation fears reaffirm bets for a September interest rate hike by the Federal Reserve (Fed) amid escalating US-Iran tensions.Furthermore, the persistent wide US-Japan interest rate differential keeps the so-called…
The dollar held firm on Wednesday as renewed hostilities in the Middle East pushed oil prices higher and revived inflation concerns.The currency’s safe-haven appeal has been reinforced by rising Treasury yields and growing expectations of a Federal Reserve rate hike, even as recent economic data came in below forecasts.The U.S. launched a barrage of airstrikes on Iran on Tuesday, prompting Iranian retaliation in the most serious escalation in weeks. Oil prices rose nearly 1% in early trade on Wednesday, extending the previous session’s surge, with Brent futures up 0.92% at $95.52 a barrel and U.S. West Texas Intermediate (WTI) crude…
Mumbai: The Indian rupee ended with its strongest closing in nearly two months to close at 94.95 on Tuesday, versus its previous close of 95.16. The strength came from flow-related dollar offers from foreign banks and aggressive central bank intervention through nationalised banks. The rupee gained past the 95 per dollar levels, which was a strong resistance zone, triggering stop losses for many.The gains came in despite high crude oil prices and overall weak Asian currencies during the day. Strong Q1 GDP growth of 7.8% along with dollar sales by the Reserve Bank both in the offshore as well as…
Bank of Japan (BoJ) Governor Kazuo Ueda on Tuesday held talks with US Treasury Secretary Bessent on the sidelines of the G20, but giving no details on what was discussed. Ueda said central banks discussed the need for improved communication to achieve appropriate monetary policy as the global environment changes. He declined to comment on markets pricing in a strong chance of a September rate hike.Key quotesDiscussed with central banks need to communicate for suitable monetary policy to achieve price stability amid changing global environment. Held talks with US Bessent but no details disclosed. No comment on daily moves, markets price in…
US Treasury Secretary Scott Bessent said on Tuesday that he emphasized the importance of sound formulation and communication of monetary policy to anchor inflation expectations in a meeting with Bank of Japan (BoJ) Governor Kazuo Ueda.Bessent added that the support Japan’s steps to address the undervaluation of the Japanese Yen.Key highlights:I EMPHASIZED THE IMPORTANCE OF SOUND FORMULATION AND COMMUNICATION OF MONETARY POLICY TO ANCHOR INFLATION EXPECTATIONS IN MEETING WITH THE BANK OF JAPAN GOVERNOR.I EXPRESSED STRONG SUPPORT FOR JAPAN’S DECISIVE MARKET AND MONETARY STEPS TO ADDRESS THE SUBSTANTIAL UNDERVALUATION OF THE YEN.I TOLD THE BOJ GOVERNOR TO AVOID EXCESS FX…
ING’s Francesco Pesole notes the Dollar has surrendered around half of its post-Jackson Hole gains, even as front-end US rates remain firmly supported. He argues that concerns over long-end yields and potential Treasury intervention are feeding a debasement narrative. ING’s baseline sees solid US data this week, reinforcing expectations for a September Federal Reserve hike and allowing DXY to reclaim the 100.0 level.Fed repricing and DXY recovery prospects”The dollar has given back roughly half of the gains sparked by Federal Reserve Chair Kevin Warsh’s hawkish speech on Friday. Importantly, this does not reflect any fading conviction on Fed tightening. The…
The rupee settled above the 95 to the dollar mark for the first time in two months, defying a selloff in Asian currencies triggered by a global bond rout that deepened with Japan’s benchmark bond yield hitting the key 3% barrier for the first time in 30 years. | Photo Credit: istock.com Rupee surged to a two-month high against the U.S. dollar on Tuesday, powered by aggressive central bank intervention and supported by flow-related dollar offers from foreign banks.The rupee settled above the 95 to the dollar mark for the first time in two months, defying a selloff in Asian…
The GBP/JPY cross edges higher on Tuesday, though it lacks bullish conviction and remains confined within a familiar range held over the past week or so. Spot prices currently trade around mid-216.00s amid a broadly weaker Japanese Yen (JPY).Japan’s benchmark 10-year bond yield hit 3% for the first time since September 1996 amid inflation risks stemming from higher energy prices and mounting pressure on the Bank of Japan (BoJ) to hike interest rates faster. This would increase the cost of servicing Japan’s massive debt pile at a time when Prime Minister Sanae Takaichi is planning aggressive investment, adding to worries…
The USD/JPY pair edges higher to around 159.85 during the early European trading hours on Tuesday. Japan’s 10-Year bond yield hit 3% for the first time in three decades after US Treasury Secretary Scott Bessent signaled that the United States (US) wants the Bank of Japan (BoJ) to raise interest rates more aggressively.Bessent said on Tuesday he believes the Japanese government and central bank will take action that leads to a stronger Japanese Yen (JPY), per CNBC. However, the JPY remains weak against the US Dollar (USD) despite Bessent’s comments. Japanese Finance Minister Satsuki Katayama said that she met with Bessent…