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The Indian rupee strengthened to a fortnightly peak on Thursday, bolstered by broad weakness in the dollar on the back of concerns over the future independence of the US Federal Reserve.The rupee rose 0.4 per cent to close at 85.7050 per US dollar, tracking gains in its regional peers.The dollar index fell to its lowest level since March 2022 and was last quoted at 97.1, down 0.3 per cent on the day.While the dollar had perked up on the back of safe-haven demand during the Iran-Israel conflict, the ceasefire has deflated the geopolitical risk premium.Its troubles were compounded by the…

EUR/GBP tumbles to around 0.8525 in Thursday’s early European session.The strong UK PMI data underpin the Pound Sterling and create a headwind for the cross. BoE’s Bailey sees more signs of a softening labor market. The EUR/GBP cross loses traction to near 0.8525 during the early European session on Thursday, pressured by a stronger Pound Sterling (GBP) broadly. Traders will closely monitor the Bank of England’s (BoE) Governor Andrew Bailey speech later on Thursday.UK business activity expanded modestly in June, which provides some support to the GBP. The S&P Global UK Composite PMI rose to 50.7 in June versus 50.3 prior, stronger…

The Indian Rupee jumps higher against the US Dollar as Trump attacks Fed’s independence.Fed’s Powell stated that tariffs-driven inflation could be persistent.The RBI monthly bulletin shows that the Indian economy remained resilient in May.The Indian Rupee (INR) gains sharply against the US Dollar (USD) on Thursday. The USD/INR pair slides to near 85.65 during European trading hours, the lowest level seen in 10 days. The pair weakens as the US Dollar (USD) renewed its three-year low after United States (US) President Donald Trump lashed out on Federal Reserve (Fed) Chair Jerome Powell for not supporting interest rate cuts in the…

“Federal financial policy, debt, doesn’t affect our month-to-month policy decisions,” Federal Reserve (Fed) Chairman Jerome Powell said while testifying about the Semi-Annual Monetary Policy Report before the Senate Banking Committee on Wednesday.Key takeaways”Ample reserves enable banks to keep lending through stress.””Return to scarce reserves would not save money.””Unwinding ample reserves would take years.””Enormous benefits of having the Dollar as the global reserve currency.””Dollar remains reserve currency, it’s a durable equilibrium, expect it to last for a long time to come.””Bond market is functioning well.””Inflation expectations have come down a bit from April.””On USD weakness, markets have been digesting an unusually…

Federal Reserve Bank of Boston President Susan Collins said on Wednesday that the US economy is solid overall and added that the monetary policy is well-positioned, per Reuters.Key takeaways”Time for patience and care.””Supported Fed’s decision to hold steady on rates last week.””Tariffs likely to push up inflation, lower growth and hiring.””Expecting to see more tariff impact over coming months.””Expecting it to be appropriate to lower rates later this year but much depends on tariffs.”Market reactionThese comments failed to trigger a noticeable market reaction. At the time of press, the US Dollar (USD) Index was up 0.15% on the day at…

USD/CAD edges higher as markets await further clues from Fed Chair Powell.US New Home Sales data for May at 14:00 GMT is expected to provide additional insight into the current health of the US housing market. The Loonie pair remains vulnerable to risk sentiment and developments from the United States, which could provide further insight into interest rate expectations.The Canadian Dollar (CAD) is softening against the US Dollar (USD) on Wednesday as the currency pair attempts to break free from a consolidation phase.With USD/CAD trading near 1.3750 at the time of writing, the release of US New Home Sales data for…

The rupee gave up its gains and settled for the day lower by 2 paise at 86.07 (provisional) against the US dollar on Wednesday, on recovery in global crude oil prices and the US Dollar index. A strong show in the domestic equity markets prevented steep losses in the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 86.00 against the US dollar and traded in the range of 85.79-86.14 before settling at 86.07 (provisional), down 2 paise from its previous close. Rupee opened in the positive on a surge in domestic markets and improved…

The Australian Dollar extends gains due to the Israel-Iran ceasefire.Australia’s Monthly Consumer Price Index increased by 2.1% YoY in May, against the expected 2.3% rise and the 2.4% prior.Fed Chair Powell advocated for delaying rate cuts, likely until sometime in the fourth quarter.The Australian Dollar (AUD) extends its gains for the third successive session on Wednesday. The AUD/USD pair remains stronger following the release of Australia’s Monthly Consumer Price Index (CPI), which climbed by 2.1% year-over-year in May. The inflation came in softer than market expectations of a 2.3% rise and the 2.4% prior, easing after remaining consistent for three…

The US Dollar Index edges lower to around 97.90 in Wednesday’s early European session. The negative outlook of the index remains in play below the 100-day EMA with a bearish RSI indicator. The first support level to watch is 97.75; the immediate resistance level is seen at 99.16.The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, extends the decline to near 97.90 during the early European session on Wednesday. Growing optimism that a ceasefire between Israel and Iran will hold after it was touted by US President Donald Trump weighs on the safe-haven currency like the…

Markets continue to price a low probability of rate cut next month | Photo Credit: Baris-Ozer The Indian rupee is expected to open higher on Wednesday, sustaining its rally past the 86 level, supported by a fall in demand for the safe-haven dollar and upbeat risk appetite following the Israel-Iran ceasefire.The 1-month non-deliverable forward indicated an open in the 85.92-85.96 range, versus 85.9750 in the previous session. The rupee rallied 0.9% on Tuesday, logging its best single-day performance in a month.Rupee to hold above 86 as safe haven premium in dollar erodesBrent crude declined 13.2 per cent over the last…