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India’s GIFT City regulator is in talks with the Reserve Bank of India to allow domestic banks to instantly settle forex transactions through its real-time clearing system.  The regulator of India’s Gujarat International Finance Tech (GIFT) City is in discussions with the country’s central bank to allow domestic lenders to instantly settle forex transactions through the tax-neutral finance hub, the regulatory body’s chairman said.The move would make forex transactions quicker and cheaper and ease settlement processes for foreign investors investing in India through GIFT City, which Prime Minister Narendra Modi is pitching as a finance hub to rival centres like…

 On Tuesday, the rupee fell three paise to close at 88.77 against the US dollar | Photo Credit: Andrii Yalanskyi;iStockphoto The rupee witnessed range-bound trade on Wednesday and settled for the day lower by three paise at 88.80 (provisional) against the US dollar, tracking a negative trend in domestic equities amid a rise in risk-off sentiments. Forex traders said the US dollar is holding its ground, yet beneath the dollar’s steady facade lies a growing tension. The rupee is likely to remain within a narrow range, supported by domestic triggers such as IPO-related inflows, and potential progress in US–India trade…

While the central bank typically conducts spot-based swaps — spot against a specific forward maturity — this time it is focusing on forward-over-forward transactions, a trader said. | Photo Credit: iStockphoto The Reserve Bank of India’s latest round of foreign exchange buy/sell swap operations, likely aimed at rolling over upcoming maturities, has sent dollar/rupee forward premiums sliding to their lowest in more than a month.The central bank has been conducting a series of buy/sell FX swaps, spanning October delivery over January to March 2027 maturities, over the last three sessions, bankers said.In buy/sell FX swaps, the RBI buys dollars in…

Gold (XAU/USD) continues scaling new record highs through the first half of the European session on Wednesday and climbs to the $4,040 area in the last hour. The growing acceptance of further interest rate cuts by the US Federal Reserve (Fed) has been a key factor driving flows towards the non-yielding yellow metal. Apart from this, mounting concerns that a prolonged US government shutdown could affect the economic performance turned out to be another factor underpinning the safe-haven bullion amid a slight deterioration in the global risk sentiment.Meanwhile, the US Dollar (USD) advanced to its highest level since late August,…

Rupee witnessed range-bound trading in morning deals on Wednesday and rose two paise to 88.75 against the US dollar, tracking a positive trend in domestic equities and likely IPO-related inflows. Forex traders said the rupee is trading in a tight range as it remains under pressure due to continued capital outflows and geopolitical developments. At the interbank foreign exchange market, the rupee opened at 88.76 against the US dollar, then inched up to 88.75, registering a gain of two paise from its previous close. On Tuesday, the rupee fell 3 paise to close at 88.77 against the US dollar.“Today the…

Federal Reserve (Fed) Board of Governors member Stephen Miran made another long-winded appearance on Tuesday, reiterating that he believes any underlying inflation pressures within the US economy are entirely contained within migrant population effects, and will be solved mainly by immigration controls. Miran also gave his own personal estimate of the neutral rate of interest, or r-star as it is known to economists, of 0.5%. Miran’s unexplained personal model for r-star comes in well below even the most aggressive common r-star models, which all currently land somewhere in the 1% to 0.8% range at the absolute lowest.Key highlightsGrowth in the…

NZD/USD retreats on Tuesday, extending consolidation below 0.5840 to trade near 0.5810 at the time of writing. Market participants turn their attention to the Reserve Bank of New Zealand’s (RBNZ) monetary policy decision due on Wednesday.The New Zealand central bank is widely expected to cut its Official Cash Rate (OCR), currently at 3%, to support a weakening economy. However, markets remain divided between a 25-basis-point reduction to 2.75% and a more aggressive 50-basis-point move to 2.50%. The move would be the eighth rate cut since August 2024.According to Brown Brothers Harriman, “the 0.9% GDP contraction in the second quarter leaves…

The Euro (EUR) remains under pressure on Tuesday, slipping toward a one-month low against the US Dollar (USD) as deepening political turmoil in France fuels risk-off sentiment in European markets. At the time of writing, EUR/USD is trading around 1.1672, stabilizing somewhat after earlier losses.French Prime Minister Sébastien Lecornu resigned on Monday, only weeks after taking office, deepening the country’s political crisis and adding pressure on President Emmanuel Macron. Macron has asked the outgoing prime minister to stay in office until Wednesday evening to hold “final negotiations” with political parties in an effort to define a platform for action and…

Dollar index, which gauges the greenback’s strength against a basket of six currencies, increased 0.34 per cent to 98.13 | Photo Credit: Andrii Yalanskyi The rupee fell 4 paise to close at 88.78 (provisional) against the US dollar on Tuesday, weighed down by a strong American currency overseas and unabated foreign capital outflows.The domestic currency traded in a tight range as investors preferred to remain on the sidelines amid uncertainties over global trade, forex traders said.At the interbank foreign exchange market, the rupee opened with a marginal gain at 88.72 against the US dollar and touched the intra-day low of…

The USD/CAD outlook stays positive near 1.3950 amid cautious sentiment.  The dollar stays pressured due to the ongoing US government shutdown and dovish Fed rate cuts.  The Canadian dollar strengthens due to stable oil prices and a balanced BoC Outlook.   The USD/CAD outlook maintains a positive stance as the pair holds near 1.3950, signaling minimal market volatility as traders witness the current US government shutdown. The markets are also affected by the ongoing Federal Reserve rate expectations and the forthcoming Canadian employment figures. Traders remain sidelined in the subdued markets, awaiting monetary policy signals.  –Are you interested to learn more…