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The rupee pared its initial gains to settle 8 paise lower at 85.56 (provisional) against the US dollar on Friday, as volatility in domestic equities and recovering global crude prices pressured the local currency.However, a steady inflow of foreign funds supported the domestic unit even as investors stayed cautious, awaiting domestic GDP data to be released later in the day, forex traders said.At the interbank foreign exchange, the domestic unit opened at 85.35 and moved between the intra-day high of 85.25 and the low of 85.64 against the greenback. The unit settled for the day at 85.56 (provisional), registering a…

The Indian rupee declined by about 1% in May, reversing course after gaining in the previous two months, influenced by factors such as continued uncertainty over U.S. trade policies, gains in its Asian peers and a conflict between India and Pakistan. The rupee closed at 85.5775 on Friday, capping a day of choppy trading with a mild decline. The currency had rallied to a six-month earlier in May but shed its gains through the month.Initially, a military conflict between India and Pakistan hurt the currency but it rebounded once a ceasefire was reached. Over the rest of the month, dollar…

EUR/USD trims gains as the US Dollar finds support ahead of the PCE inflation data release.A US federal court reversed the previous day’s sentence blocking tariffs and sent the US Dollar tumbling on Thursday. In Europe, the focus will be on the German CPI due later today.EUR/USD is trading with minor losses around 1.1340 at the time of writing on Friday, but it holds most of the ground taken during Thursday after a US federal court reversed the block on US President Donald Trump’s tariffs, triggering a sharp US Dollar (USD) sell-off.The US Court of Appeals paused the previous day’s ruling…

The rupee strengthened by 19 paise to 85.29 against the US dollar in early trade on Friday on the back of lower crude oil prices and sustained foreign fund inflows. Forex traders said a firm greenback and volatile stock markets capped the rupee’s gain even as market participants stayed cautious ahead of the release of domestic GDP data. At the interbank foreign exchange, the domestic unit opened at 85.35 and gained further to trade at 85.29 against the greenback in initial deals, registering a rise of 19 paise from its previous close. The rupee ended 10 paise lower at 85.48…

Indian Rupee posts modest gains in Friday’s Asian session. The downbeat US economic data and uncertainty of Trump’s policies weigh on the US Dollar. Traders brace for India’s Q1 GDP and US April PCE inflation reports, which are due later on Friday.The Indian Rupee (INR) gains ground on Friday, snapping the three-day losing streak. The downbeat US economic data and concerns that a US court ruling would change the outlook for US tariffs undermine the US Dollar (USD). A decline in crude oil prices provides some support to the Indian currency, as India is the world’s third-largest oil consumer. However, the renewed importer…

Federal Reserve Bank of San Francisco President Mary C. Daly said late Thursday that the central bank needs modestly or moderately restrictive policy to keep bringing down inflation.Key quotesTwo rate cuts this year would make sense if the labor market stays solid and inflation falls, but the range of possible risks is large.Currently tilt toward a focus on inflation.Need a modestly or moderately restrictive policy to keep bringing down inflation.Looking for signs inflation is continuing to fall, or if it’s rising or staying sticky.Also looking for any weakening in the job market, not seeing any.Not facing policy tradeoffs now.The Fed is…

On Thursday, the Banco de Mexico (Banxico) revealed its latest meeting minutes, in which the central bank decided to lower interest rates by 50 basis points to 8.50% at its May 15 meeting. The release of the minutes has had a minimal impact so far on the USD/MXN pair, which trades with a loss of 0.17% at 19.35, weighed by broad US Dollar weakness.Key QuotesAll members agreed that the period between monetary policy decisions continued to be characterized by a high uncertainty generated by the various trade policy announcements worldwide.Most members expressed that the changes in trade policy have brought…

Gold price recovers its early losses as the US Dollar falls back, with the legal roadblock of Trump’s tariffs raising global economic uncertainty.The US court orders the administration to lift reciprocal import duties and tariffs related to fentanyl and immigration controls.US businesses are expected to suspend their investment plans until they receive clarity on levies.Gold price (XAU/USD) claws back the majority of its initial losses and recovers above $3,300 in Thursday’s North American trading session from the weekly low of $3,245 posted earlier in the day. The yellow metal bounces back as the US Dollar (USD) gives up its early…

A surge in the US dollar index and crude oil prices weighed on the rupee | Photo Credit: PRIYANSHU SINGH The rupee declined 10 paise to close at 85.48 (provisional) against the US dollar on Thursday due to a strong American currency against major crosses overseas and rising global crude oil prices.However, positive domestic equity market and foreign fund inflows supported the local currency and restricted its slide, forex traders said.At the interbank foreign exchange, the domestic unit opened at 85.56 and touched the intra-day low of 85.62 against the greenback. The unit hit the day’s high of 85.40 before…

The Indian rupee weakened slightly on Thursday, as the greenback firmed following a court decision to block President Donald Trump’s “reciprocal tariffs” from going into effect, while traders also pointed to importer dollar bids weighing on the local unit. The rupee closed at 85.5075 against the U.S. dollar, down 0.2% from its close at 85.36 in the previous session. The dollar index rose to an over one-week high of 100.48 before slipping back below the 100-handle while Asian currencies were trading mixed.The offshore Chinese yuan was little changed at 7.19 while the Malaysian ringgit led losses among Asian peers, with…