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EUR/USD appreciates on Monday, with the US Dollar weighed by fresh tariff threats and a trade rift with China.Looming concerns about US fiscal stability keep undermining confidence in US assets. Euro bulls are likely to be challenged at the 1.1415 area.EUR/USD is trading with minor gains on Monday. The pair is moving near 1.1400 at the time of writing, with the US Dollar undermined by US President Donald Trump’s fresh tariff threats, a new trade rift with China, while debt concerns remain looming.Trump rattled markets late Friday, announcing to double tariffs on Steel and Aluminum imports, from 25% to 50%. Investors…

The Indian rupee is emerging Asia’s worst performer this quarter and may continue to lag peers as the central bank aims to avert a depletion in its foreign-exchange reserves, according to analysts. The Reserve Bank of India had dollar repayments of about $73 billion as of April as indicated by its net short forwards position, a measure of the amount of greenback it has agreed to sell at a future date, according to the central bank’s latest data. It has narrowed from an all-time high of $88.8 billion in February. That may pile pressure on the RBI to buy dollars to prevent…

Emerging market carry trades are taking off again, as currency volatility subsides amid signs President Donald Trump’s aggressive tariffs may not get fully enacted. An index of carry returns — for which a trader borrows in a low-yielding currency and then invests in another offering higher returns — hit a seven-year high in late May. Asset managers have boosted long positions in developing-nation currencies in recent weeks, with those on Mexico’s peso reaching a nine-month high, based on CME Group Inc. data.“Carry trades at this juncture, they do make sense,” said Ali Bora Yigitbasioglu, a senior investment manager for fixed income…

The rupee appreciated by 12 paise to 85.43 against the US dollar in early trade on Monday on the back of a weak American currency and favourable macroeconomic data that fuelled hope of a further reduction in key interest rate in the RBI’s upcoming monetary policy. However, a volatile equity market, outflow of foreign funds and higher crude oil prices amid global trade related uncertainties weighed on the Indian currency, according to forex traders. Analysts also said that market participants will be closely monitoring key macroeconomic announcements for further cues.RBI’s Monetary Policy Committee (MPC) will begin the deliberations on its…

The Japanese Yen scales higher against a weaker USD for the third straight day on Monday.The divergent BoJ-Fed policy expectations and reviving safe-haven demand benefited the JPY.Hopes for a US-Japan trade deal further support the JPY and weigh on the USD/JPY pair. The Japanese Yen (JPY) retains a positive bias against a broadly weaker US Dollar (USD) through the Asian session on Monday and is underpinned by a combination of factors. Investors seem convinced that the Bank of Japan (BoJ) will continue raising interest rates amid the broadening inflation in Japan. Apart from this, hopes for an eventual US-Japan trade…

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to surge oil output for the third month in a row. An increase in oil output for July that may be larger than the 411,000 barrels per day (bpd) increases it made for May and June, per Reuters. Market reactionAt the time of press, the WTI price was up 1.90% on the day at $61.45. WTI Oil FAQs WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also…

Indian business man counting newly launched indian five hundred rupees. Money counting background concept with copy space. | Photo Credit: Avijit Sadhu Foreign exchange reserves (forex) jumped $6.992 billion to $692.721 billion in the week ending May 23, official data released by the Reserve Bank of India showed.Estimates suggest that the country’s foreign exchange reserves sufficiently cover approximately 10-12 months of projected imports.With this weekly jump, the forex kitty is quite close to its all-time high of $704.89 billion, reached in September 2024.The latest RBI data showed that India’s foreign currency assets (FCA), the largest component of foreign exchange reserves,…

The Dow Jones tested lower on Friday after Donald Trump aimed at China once again.Equity markets remain hesitant following this week’s legal snag for Trump’s tariffs.US PCE inflation came in as expected, albeit with upside revisions to previous data.The Dow Jones Industrial Average (DJIA) stumbled on Friday as investors continue to get pummeled with new trade concerns from the White House. United States (US) President Donald Trump has pivoted once again to focus on China, claiming that their preliminary trade arrangements have been “violated”. Despite a general cooling off of key US Personal Consumption Expenditure Price Index (PCE) inflation figures…

The Canadian Dollar climbed 0.7% against the Greenback in Friday.Upbeat Canadian GDP growth figures sent Loonie traders scrambling for the buy button.The CAD is back in sight range of six-month highs.The Canadian Dollar (CAD) found some room on the top side on Friday, spurred higher by a better-than-expected print in Canadian Gross Domestic Product (GDP) growth figures for the first quarter. Ongoing trade turmoil from the Trump administration has kept the US Dollar (USD) hobbled near multi-year lows, giving the Loonie a chance to gain fresh ground.The Canadian economy grew by 2.2% through the first quarter, soundly thumping median market…

AUD/USD whipsaws on mixed economic data and expectations for monetary policy.Australia’s Retail Sales miss forecasts, but declining US inflation limits the losses.AUD/USD looks toward technical levels from historical moves for direction.The Australian Dollar (AUD) is consolidating against the US Dollar on Friday as fresh domestic data and monetary policy expectations for the Reserve Bank of Australia (RBA) and the US Federal Reserve (Fed) continue to drive price action.At the time of writing, the AUD/USD pair is struggling to find direction, held back by a combination of soft economic fundamentals and a technically capped range.Australia’s economy shows signs of weakness as…