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The rupee depreciated 13 paise to 85.55 against the American currency in early trade on Tuesday, tracking a muted trend in domestic equities and foreign fund outflows.Forex traders said the recent surge in the US 10-year yield reflects mounting concerns over fiscal and monetary policies, driving borrowing costs higher and this has pushed the Dollar Index lower. Moreover, US Treasury Secretary Scott Bessent recently warned of potential sharp tariff increases on key US trading partners. Such a move could rattle markets, traders said. At the interbank foreign exchange, the domestic unit opened at 85.47 and fell to 85.55 against the…

The Reserve Bank of Australia (RBA) board members decided to lower the Official Cash Rate (OCR) by 25 basis points (bps) to 3.85% from 4.1%, following the conclusion of its May monetary policy meeting.The decision was widely anticipated.Summary of the RBA monetary policy statementEscaltion of global trade conflict a key downside risk to economy.Global growth outlook downgraded, uncertainty has increased due to us tariff policies.Trims core domestic inflation forecasts, unemployment seen slightly higher.Lower inflation, higher unemployment forecasts based on market assumption of total 85 bps rate cuts.Swift easing in trade tensions could see faster global growth, less rate cuts domestically.Market services…

Brazil’s central bank does not see any realistic prospect of emerging nations in the BRICS group creating markets large enough to topple the U.S. dollar’s dominance within the next 10 years, monetary policy director Nilton David said on Monday.There is not a meaningful stock of BRICS-denominated assets that could offset the dollar at the moment, David told a central bank webcast. “I don’t think that will change over the coming decade,” he added.The director acknowledged that alternative settlement tools could gain traction and help boost bilateral trade deals, but nowhere near enough to dislodge the dollar in any visible horizon.The…

China on Monday accused the US of undermining the two countries’ preliminary trade agreement after the US issued an industry warning against using Chinese chips that singled out Huawei, per CNBC. According to a spokesperson for China’s Ministry of Commerce, the US Commerce Department’s advice is “discriminatory” and “market distorting,” prompting Beijing to “demand” that the administration “correct its mistakes.”Market reactionAt the time of writing, the AUD/USD pair is trading 0.06% lower on the day to trade at 0.6455.  US-China Trade War FAQs Generally speaking, a trade war is an economic conflict between two or more countries due to extreme protectionism on…

EUR/CHF trades near the 0.94 zone with minor gains on Monday.The pair maintains a neutral tone, with conflicting short-term and long-term signals.Key support is clustered below 0.9370, with resistance near 0.9400.The EUR/CHF pair is trading near the 0.94 zone on Monday, reflecting minor gains as the market stabilizes within its recent range. Despite the modest upside, the pair remains constrained by a broadly neutral technical outlook, with mixed signals across multiple timeframes. Short-term momentum is showing signs of a potential bullish tilt, though the broader context still suggests cautious trading.On the daily chart, the EUR/CHF pair presents a mixed technical…

The USD/JPY forecast shows further dollar weakness. US consumer sentiment came in at 50.8 compared to expectations of 53.1. Trump’s tariff threats caused some uncertainty in the market. The USD/JPY forecast shows further dollar weakness after a downgrade to the US government’s credit rating. At the same time, market participants were worried about progress on trade negotiations between the US and its trading partners.  –Are you interested in learning more about buying NFT tokens? Check our detailed guide- The dollar fell on Friday after data revealed weak consumer sentiment. According to the report, consumer sentiment came in at 50.8 compared…

Gold price rallies over 1% higher on Monday after Moody’s downgraded the US’s sovereign debt credit rating on Friday, sending yields higher. Fed’s Bostic comments saying ripple effects into US economy could be felt for this credit downgrade.Gold trades in a tight range, holding above $3,230 to start the week. Gold (XAU/USD) edges higher, trading over 1% on Monday and hits $3,240 at the time of writing, while traders mull three main elements this Monday. Tensions are brewing in the Middle East with Israel embarking on another massive ground offensive. The military action comes just days after United States (US) President Donald…

At the interbank foreign exchange, rupee opened at 85.43 and moved between the intra-day high of 85.35 and the low of 85.61 against the dollar | Photo Credit: PRIYANSHU SINGH The rupee appreciated 17 paise to settle at 85.40 (provisional) against the US dollar on Monday, on weak US dollar index and a decline in crude oil prices.Forex traders said global investors were also cautious as global rating agency Moody’s downgraded US investment grade rating, leading to a fall in dollar index.At the interbank foreign exchange, the domestic unit opened at 85.43 and moved between the intra-day high of 85.35…

The Indian rupee ended modestly higher on Monday, hoisted by a weaker dollar, hurt by concerns over U.S. debt and deficits following a Moody’s downgrade of the country’s sovereign credit rating late last week. The rupee closed at 85.40 against the U.S. dollar, up 0.1% on the day. The currency had dipped to a low of 85.61 in early trading but reversed course as the dollar declined by about 0.6% against major peers. Asian currencies were mostly stronger on the day with the Thai baht leading gains with a 0.8% rise. Safe havens like the Japanese yen and Swiss franc,…

The Pound Sterling gains against its major peers on Monday ahead of a potential trade deal between the UK and the EU later in the day.Moody’s downgrade of the US Sovereign credit rating has battered the US Dollar.According to analysts, the Fed is unlikely to cut interest rates this year.The Pound Sterling (GBP) trades higher against its major peers, except the Euro (EUR), at the start of the week. The British currency moves higher ahead of the European Union (EU)-United Kingdom (UK) trade summit in London on Monday. Investors will pay close attention to a potential trade deal as it…