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The Indian rupee dropped to its weakest level in two months as global bond yields surged to decadal highs and oil prices jumped, deepening pressure on the South Asian currency that was already hurt by foreign portfolio outflows on Thursday.The rupee ended down 0.5% at 96.3150 per dollar, its sharpest single-day fall in more than two months after it breached the key psychological barrier of 96 even as dollar sales by state-run banks limited its fall.Borrowing costs from the US to France, Britain and Japan hit their highest in decades on Thursday, squeezing already pressured government finances, and threatening stocks,…
The rupee ended down 0.5% at 96.3150 per dollar, its sharpest single-day fall in more than two months after it breached the key psychological barrier of 96 even as dollar sales by state-run banks limited its fall. | Photo Credit: istock.com The Indian rupee dropped to its weakest level in two months as global bond yields surged to decadal highs and oil prices jumped, deepening pressure on the South Asian currency that was already hurt by foreign portfolio outflows on Thursday.The rupee ended down 0.5% at 96.3150 per dollar, its sharpest single-day fall in more than two months after it…
RBI rules allow Indian companies that meet minimum net worth and adequate risk management eligibility requirements that have rupee liabilities to use currency swaps to transform those liabilities into foreign-currency exposure. | Photo Credit: FRANCIS MASCARENHAS Billions of dollars of FX swaps by the central bank have shifted the economics of cross-currency funding for Indian companies, creating an opportunity to access dollar funding at a relatively lower cost.The Reserve Bank of India has been draining surplus liquidity in India’s banking system through dollar-rupee swaps that have spurred a jump in FX forward premiums. Higher forward premiums make currency swaps a…
The euro hit its lowest point in 17 months on Thursday, as investors battered European assets in light of the impact on the regional economy from higher oil prices and inflation, while mounting political uncertainty added to an uncertain backdrop.The European currency fell below $1.13 for the first time since May 2025 against the dollar, which has been in ascendance for the past couple of months, thanks in part to the largest quarterly rise in Treasury yields since 1994.The euro also sank against the yen, the Swiss franc and barely held in positive territory against the pound, as yields on…
Rabobank Research Global Economics & Markets reports that the Bank of Japan (BOJ) is reluctant to continue rapid rate hikes, with September meeting notes revealing internal divisions and concerns over weak private consumption. BOJ balances growth and tightening risks”The BOJ doesn’t want to keep raising rates rapidly, the September meeting notes showing some hawks but others pointing to weak private consumption and warning against hasty action, as government representatives urged weighing the cumulative impact of past rate increases.””However, with the latest Tankan survey the most upbeat for large manufacturers since 2018 the Bank may not have a choice – assuming…
Rupee traded in a narrow range and fell 3 paise to 95.97 against the US dollar in early trade on Thursday, constrained by ongoing dollar demand from state-run oil companies.However, RBI-backed dollar sales across spot and forward markets continue to cap losses, keeping the exchange rate below the 96.00 threshold.Additionally, sustained foreign portfolio outflows and firm US yields are keeping pressure on the USD/INR pair.At the interbank foreign exchange market, the rupee opened at 95.95, then fell to 95.97 against the US dollar, registering a fall of 3 paise from its previous close.On Wednesday, the rupee pared gains to settle…
Gold prices rose in India on Thursday, according to data compiled by FXStreet.The price for Gold stood at 12,873.52 Indian Rupees (INR) per gram, up compared with the INR 12,824.85 it cost on Wednesday.The price for Gold increased to INR 150,154.80 per tola from INR 149,586.60 per tola a day earlier.Unit measureGold Price in INR1 Gram12,873.5210 Grams128,735.70Tola150,154.80Troy Ounce400,410.60FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge…
The Bank of Japan (BoJ) published the Summary of Opinions from the September monetary policy meeting, with the key findings noted below. One member said appropriate to keep raising rates in line with economy, price, financial developments.One member says policy phase shifted, focus must be on anchoring underlying inflation near 2%. One member said BoJ must act nimbly, show market determination to prevent inflation overshoot and consider impact on FX market. One member said central bank must accelerate rate increases if inflation exceeds target. Big manufacturers’ sentiment index rises for 6 straight quarters, reaches highest level since March 2018. One member said central bank must…
Mumbai: The central bank’s net short forward positions increased to $200 billion in August even as some long positions were added, amid inflows from the special window for FCNR(B) hit the system. The net short forward positions stood at $136 billion in July, latest Reserve Bank data showed.Long positions in the upto one month tenure increased to $31.6 billion, while short positions of the same maturity stood at $12.1 billion. In the 1-3 month category, short positions stood at $11 billion, while in the three month to one year tenure, short positions were at $24.6 billion.”There are additions of long…
The European Central Bank (ECB) Christine Lagarde said that France’s debt situation is “serious at 120% of GDP and without a path to lowering it,” at an interview with La Croix.Lagarde added that the European financial system is more solid than in the 2008 and 2011 crises and stated that “France needs a credible budget trajectory and reforms to restore confidence.”Key highlights:Tells La Croix newspaper that France’s debt situation is serious at 120% of GDP and without a path to loweringTells La Croix newspaper the European financial system is more SOLID now than in the 2008 and 2011 crisesTells La…