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The rupee jumped sharply on Friday to log its best single-day gain in nearly two months as likely intervention by the central bank converged with a drop in oil prices, which also briefly lifted the local currency above the 95/USD mark. The rupee ended the session at 95 per dollar, up 0.7% from the previous session, its best day since April 2. It gained by a similar amount week-on-week, but was flat for the month. While the rupee appeared set to endure a weaker day, likely dollar selling intervention reversed the trajectory, with a drop in crude prices adding to…
The Reserve Bank of India said the use of the Indian rupee for trade invoicing and settlement has risen steadily in recent years, driven by measures to internationalise the currency. | Photo Credit: iStockphoto Rupee is being increasingly used for import and export invoicing over the years, showed the data compiled by the Reserve Bank of India, which said the INR internationalisation process has been mutually beneficial to all trading partners.Over the past few years, several measures have been undertaken by the RBI to enhance the role of INR as an international currency through its increased usage for both current…
The Indian rupee jumped sharply on Friday to log its best single-day gain in nearly two months as likely intervention by the central bank converged with a drop in oil prices, which also briefly lifted the local currency above the 95/USD mark.The rupee ended the session at 95 per dollar, up 0.7 per cent from the previous session, its best day since April 2. It gained by a similar amount week-on-week, but was flat for the month.While the rupee appeared set to endure a weaker day, likely dollar selling intervention reversed the trajectory, with a drop in crude prices adding…
Japan’s Chief Cabinet Secretary Minoru Kihara said during the European trading session on Friday that the government is extremely concerned about speculative Forex (FX) moves and will be ready for appropriate action if needed.Additional remarksGovernment’s stance is always to take appropriate action on forex.Won’t comment on forex levels, intervention.The statement from Japan’s Chief Cabinet Secretary Kihara increases hopes of an intervention against excessive forex moves. Earlier in the day, Japan’s Finance Minister (FM) Satsuki Katayama warned that authorities could intervene in the foreign exchange (Forex) market to counter excessive volatility against the Japanese Yen (JPY).Market reactionNo immediate response was seen…
The rupee rose 5 paise to 95.53 against the US dollar in early trade on Friday, after the US and Iran reached an understanding to extend the ceasefire for another 60 days.Forex traders said the agreement is expected to keep trade flowing through the strategic Strait of Hormuz while both countries continue negotiations around Iran’s nuclear program.At the interbank foreign exchange market, the rupee opened at 95.77 against the US dollar, then gained ground and touched 95.53 in early trade, up 5 paise from its previous close. In initial trade the rupee also touched 95.78 against the American currency.On Wednesday,…
USD/CHF edges higher after registering modest losses in the previous day, trading around 0.7840 during the Asian hours on Friday. The pair caught in a tug-of-war between lingering geopolitical risks in the Middle East and stronger-than-expected economic data from Switzerland.Analysts at MUFG Bank have warned that the US Dollar (USD) could appreciate if Washington and Tehran fail to finalize a ceasefire extension. An unresolved conflict threatens to build global inflationary pressures, a scenario that could push US Treasury yields higher and shift the Federal Reserve’s (Fed) internal consensus toward a more hawkish monetary policy stance to combat rising prices.While the…
Reserve Bank of New Zealand (RBNZ) Assistant Governor Karen Silk said that the central bank is yet to see medium-term inflation pressures emerge, but it’s prepared to respond aggressively if they appear, Bloomberg reported on Friday.Key quotesThere’s no early signs there at the moment of that this is definitively going to flow into really strong second round effects.If the data turned round and showed that there were definitive second round effects coming through, this was going to get an awful lot worse, then you always keep that option open.No need to await quarterly CPI data to act, must adopt more…
Gold (XAU/USD) stages a rebound on Thursday as the US Dollar (USD) edges lower following fresh headlines surrounding a potential US-Iran peace deal and softer US inflation data. At the time of writing, XAU/USD is trading around $4,480 after hitting an intraday low of $4,366 earlier in the day, its lowest level in two months.Axios reported on Thursday that the US and Iran have reached a preliminary 60-day agreement to extend the current truce, though the deal still awaits final approval from US President Donald Trump. This comes after US armed forces carried out a second “defensive” strike this week…
The Euro (EUR) trades lower for the third consecutive day against the US Dollar (USD) on Thursday. Price action remains contained within a roughly 80-pip range around 1.1600, but technical indicators show a fading momentum, with the US-Iran ceasefire under threat and US Personal Consumer Expenditures (PCE) Prices Index set to show rising inflationary pressures.Market sentiment soured on Thursday following news reporting fresh US attacks on Iran. Tehran also affirmed that it launched a strike on a US base in the Gulf, and Kuwait reported interceptions of hostile missiles and drones. These skirmishes have pushed back hopes of a swift…
BNY’s Geoff Yu argues that steepening in G10 bond curves and stagflation concerns are generating fixed income-based rebalancing signals that should benefit the Pound and Japanese Yen. Poor performance of gilts and JGBs, combined with political uncertainty in the UK and persistent pass-through issues in Japan, is expected to draw some bids into GBP and JPY.Stagflation fears aid Pound and Yen”In contrast to equities, fixed income-based rebalancing has generated more signals due to significant steepening across key G10 markets as inflation expectations surged throughout the month.””GBP and JPY should also find some bids: gilts have performed poorly due to the…