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Until clarity emerges on the tariff front, the bias for the rupee remains depreciative, says an expert | Photo Credit: FRANCIS MASCARENHAS The rupee plunged to fresh record lows today, breaking past the all-time high of 87.97 and closing at 88.19 against the US dollar. The sharp slide came as markets grew increasingly anxious about the fallout of 50 per cent US tariffs on India’s growth trajectory and corporate earnings.“If the new duties remain in place for a year, they could shave off 60–80 basis points from India’s GDP growth. But the immediate and sharper concern lies in the risk…

Annual inflation in the United States (US), as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, held steady at 2.6% in July, the US Bureau of Economic Analysis reported on Friday. This print came in line with the market expectation.The core PCE Price Index, which excludes volatile food and energy prices, rose 2.9% in the same period, following June’s increase of 2.8% and matching analysts’ estimates. The PCE Price Index and the core PCE Price Index rose 0.2% and 0.3%, respectively, on a monthly basis.Other details of the report showed that Personal Income increased by 0.4%…

The USD/CAD price analysis shows a steep rally in the Canadian dollar. Next week’s nonfarm payrolls report will keep shaping the outlook for Fed rate cuts. Data on Friday revealed that Canada’s economy contracted by 0.1%. The USD/CAD price analysis shows a steady Canadian dollar as the greenback heads for a monthly loss due to Fed rate cut expectations. At the same time, market participants are still grappling with the recent threats to the Federal Reserve’s independence. –Are you interested in learning more about crypto robots? Check our detailed guide- Market participants are still expecting a rate cut next month…

EUR/CHF holds modest gains after a two-day rebound, though intraday momentum is fading.The cross is trading just below the 100-day EMA, with resistance at the 0.9400 psychological mark.Swiss Franc demand continues to limit Euro upside, keeping the cross locked in consolidation.The EUR/CHF is trading higher on Friday, although momentum is cooling after touching the day’s peak, with the cross still on track for a second straight day of recovery following a three-day decline earlier in the week. The cross is trading near 0.9358 at the start of the American session, holding just below the 100-day Exponential Moving Average (EMA). The…

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves | Photo Credit: Jo Yong hak India’s forex reserves dropped $4.386 billion to $690.72 billion for the week ended August 22, the Reserve Bank of India (RBI) said on Friday. The overall reserves had jumped $1.488 billion to $695.106 billion in the previous reporting week. For the week ended August 29, foreign currency assets, a major component of the reserves, decreased $3.652 billion to $582.251 billion, the data released on…

USD/CAD steadies near 1.3750, pausing a three-day losing streak ahead of key data.The US Dollar Index stabilizes around 98.00, although Fed rate cut bets continue to put pressure on the Greenback.Canada’s Q2 GDP expected to show –0.6% annualized contraction, reversing Q1’s 2.2% growth.The USD/CAD is virtually unchanged on Friday, trading flat after pausing a three-day losing streak as traders turn cautious ahead of the US Personal Consumption Expenditures (PCE) inflation report and Canada’s Gross Domestic Product (GDP), both scheduled for release at 12:30 GMT.At the time of writing, the pair is hovering near 1.3750 in the European session, after briefly…

The Japanese Yen (JPY) is entering Friday’s NA session flat from Thursday’s close, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report. JPY remains unchanged on the day “The overnight range was remarkably tight, with no material reaction to the release of weaker than expected industrial production and retail sales data for July. Tokyo CPI data met expectations, at 2.5% y/y on headline while the narrower (ex-food, energy) CPI printed 3.0% y/y.” “The outlook for relative central bank policy remains a core component of our bullish JPY view, as…

The rupee breached the 88-mark for the first time and closed at an all-time low of 88.19 (provisional) against the US dollar, registering a sharp decline of 61 paise amid heightened Indo-US trade deal tensions.Forex traders said the rupee is under persistent pressure amid the imposition of steep tariffs by the US compounded with persistent foreign fund outflows and month-end dollar demand.Moreover, a negative trend in domestic equities dented market sentiments.At the interbank foreign exchange market, the rupee opened at 87.73 against the US dollar, then lost ground and fell to an intra-day low of 88.33. The domestic unit settled…

The slide reflects mounting concerns among investors about the impact of Washington’s hefty levies on India’s trade and growth outlook. The Indian rupee dropped past the 88-per-dollar mark for the first time on Friday, hitting a record low with markets digesting the implications of additional US tariffs on Indian goods.The slide reflects mounting concerns among investors about the impact of Washington’s hefty levies on the country’s trade and growth outlook.The rupee dropped to 88.24 to the US dollar, breaching its prior lifetime low of 87.95.Washington imposed an additional 25 per cent tariff on Indian goods this week, doubling the total…

The Reserve Bank of India net sold $3.6 billion in June, likely to contain excess depreciation of the Indian rupee. The local currency closed at 85.47 per dollar in June, about 12 paise stronger than its level at the beginning of the month at 85.50/$1.The real effective exchange rate (REER), the weighted average of India’s currency against a basket of six major currencies, remained largely stable at 98.35 in July.A REER of less than 100 implies that the currency is undervalued, thereby enhancing export competitiveness.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not…