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| Photo Credit: JOSE LUIS GONZALEZ India’s forex reserves fell by USD 276 million to USD 699.96 billion during the week ended October 3, according to RBI data. In the previous reporting week, India’s forex reserves had dropped by USD 2.334 billion to USD 700.236 billion. For the week ended October 3, foreign currency assets, a major component of the reserves, decreased by USD 4.049 billion to USD 577.708 billion, the data released on Friday showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen…

USD is expected to trade in a range between 7.1200 and 7.1550, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note. No increase in downward momentum24-HOUR VIEW: “When USD was at 7.1475 yesterday, we noted that ‘the underlying tone has softened.’ However, we were of the view that ‘any decline is likely part of a lower range of 7.1380/7.1520 rather than a sustained decline.’ We did not expect the mild downward momentum to strengthen so quickly, as USD fell to a low of 7.1242, before rebounding to close at 7.1377 (-0.17%). The rebound from oversold conditions suggests that…

The rupee appreciated 10 paise to close at 88.69 (provisional) against the US dollar on Friday, on strength in the domestic markets and broad weakness in crude oil prices. Forex traders said the rupee gained on strong domestic markets and overnight decline in commodity prices. Intervention by the central bank also supported the domestic currency. However, a strong US dollar capped sharp gains, they added.At the interbank foreign exchange, the rupee opened at 88.80 and traded in the range of 88.50-88.80 before settling at 88.69 (provisional), 10 paise higher than its previous close. On Thursday, the rupee closed at 88.79…

EUR/USD is posting minor gains on Friday, trading at 1.1575 at the time of writing after hitting fresh two-month lows near 1.1540 the previous day. The common currency has lost over 1.4% so far this week and is on track for its worst weekly performance this year, undermined by the uncertain political and fiscal situation in France. The French Prime Minister (PM), Sébastien Lecornu, resigned unexpectedly earlier this week, and the market is awaiting President Emmanuel Macron to appoint a new one. The next PM will face the challenging task of approving a tightening budget, amid fierce opposition within the…

The rupee now looks undervalued both against the dollar and on a trade-weighted basis | Photo Credit: FRANCIS MASCARENHAS The Indian rupee’s fall to an all-time low has split analysts on what comes next for the South Asian currency. While some predict further weakness looming, strained by sluggish trade and portfolio flows, others reckon that the worst may be over as valuations turn supportive.The diverging views underscore the cross-currents affecting the Indian economy, which is pressured by punitive trade tariffs imposed by the U.S. and a lull in foreign inflows, while the domestic economy remains resilient.Goldman Sachs, in a note…

The USD/JPY outlook remains broadly bullish with mild pullbacks amid intervention fears. The US dollar gains safe-haven demand due to political chaos in Japan and Europe. Investors are eying consumer sentiment data today for more impetus. The US dollar trades mixed against the Japanese yen on Friday after marking a fresh eight-month top above the 153.00 level. FOMC September meeting minutes revealed that most policymakers urged a 25 bps rate cut with a cautious but dovish tone. Markets interpreted this as a confirmation for further easing before year-end, putting pressure on the US dollar. –Are you interested to learn more…

The rupee traded almost flat at 88.78 in the early session on Friday, hovering near all-time lows against the US dollar due to a stronger greenback in the overseas markets. Forex traders said the rupee is expected to trade in a narrow range with a chance of breaking the all-time closing low level of 88.80 in the absence of RBI intervention. At the interbank foreign exchange market, the rupee opened lower at 88.80 but soon recovered to touch 88.78 against the US dollar, registering a gain of 1 paise from its previous close. On Thursday, the rupee closed at 88.79…

The rupee was last at 88.79, just shy of its all-time low of 88.80 hit last week. | Photo Credit: FRANCIS MASCARENHAS The Reserve Bank of India likely intervened in both the non-deliverable forwards (NDF) and local spot market to support the rupee on Friday as the South Asian currency was pinned near its all-time low.Two traders told Reuters that the central bank had likely stepped in the NDF market before the local spot market opened at 9 a.m. IST while three other flagged that state-run banks were offering dollars in the local spot market, most likely on behalf of…

Citing a Trump administration official, the New York Times reported on Friday that the US Bureau of Labor Statistics (BLS) is calling back a limited number of staff from furlough to complete the September Consumer Price Index (CPI) report, despite the ongoing government shutdown.“The decision reflects the importance of September inflation data in determining the annual Social Security cost-of-living adjustment (COLA), which is calculated using third-quarter CPI figures. A prolonged delay would risk postponing the COLA announcement that affects millions of retirees,” the NY Times reported.However, the inflation data is unlikely to be released on October 15, as originally scheduled.The…

GBP/USD accelerated into the bearish side on Thursday, falling nearly eight-tenths of one percent and sending Cable bids into the 1.3300 handle for the first time since early August. Broad-market investor sentiment is beginning to crumble amid the ongoing US government shutdown, which shows no signs of slowing.The US government’s ongoing shutdown has officially extended past the one-week mark, reaching its ninth day on Thursday. Investors initially showed little to no reaction to the shuttering of federal services, but market apprehension is slowly on the rise as the US Senate shows no signs of progress. Senate Republicans have rejected multiple…