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The rupee reversed early gains to close 6 paise lower at 87.58 per US dollar on Monday, pressured by a strong greenback and rising crude oil prices | Photo Credit: iStockphoto The rupee pared initial gains to settle 6 paise lower at 87.58 (provisional) against the US dollar on Monday, tracking a strong American currency and a recovery in crude oil prices.Forex traders said investors were cautious ahead of the implementation of the August 27 tariff deadline and the upcoming US economic data ahead of the Federal Reserve’s September 17 meeting.At the interbank foreign exchange market, the rupee opened on…

The Indian rupee gave up early gains to end lower on Monday as concerns over steep tariffs on Indian goods spurred dollar demand, with importer bids adding pressure. The currency closed 0.1% lower at 87.58, against its previous close of 87.53 in the previous session. The local unit, which opened at 87.39, and hit day’s high of 87.3450, saw selling pressure through the day amid dollar-buy orders from importers.”An additional 25% tariff is set to be enforced on August 27. This move will reduce Indian exports, widen the trade deficit, and add further stress to the rupee,” said Amit Pabari,…

The biggest highlight of last month, in our view, was the sovereign rating upgrade by S&P, which was long overdue. The move is likely to attract more capital towards India over the long term, both in debt and equity.Another key development was the announcement of the rationalization of GST slab rates by PM Modi in his Independence Day speech. This, too, was long overdue.There seems to be limited room for monetary policy to turn more accommodative, and therefore a fiscal impetus was needed to support and boost consumption.However, the market’s reaction to these positive developments has been muted.We believe the…

The rupee appreciated 18 paise to 87.34 against the US dollar in early trade on Monday, supported by positive domestic equities, even as external risks remain elevated.Forex traders said the near-term direction of the rupee will depend on two key events — the implementation of the August 27 tariff and upcoming US economic data ahead of the Federal Reserve’s September 17 meeting.At the interbank foreign exchange, the rupee opened at 87.38, then touched a early high of 87.34, registering a gain of 18 paise over its previous close.On Friday, the rupee fell 27 paise to close at 87.52 against the…

The Indian rupee’s trajectory this week will be dominated by developments on U.S. trade policy, with steep tariffs on Indian goods slated to take effect from Wednesday, while government bonds will track any developments on the fiscal front. Relations between Washington and New Delhi have deteriorated, with U.S. officials openly criticizing India’s continued purchases of discounted Russian oil. Washington has already imposed 25% duties on India, higher than on several other major trading partners, and Trump has said an extra 25% levy will take effect on August 27 in response to India’s continued purchases of Russian oil.At the beginning of…

India’s foreign exchange reserves (Forex) rose by $1.48 billion in the week that ended August 15 to $695.10 billion, driven by gains in foreign currency assets, the Reserve Bank of India (RBI) said in its latest ‘Weekly Statistical Supplement’.For the reported week, India’s foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at $585.90 billion, up by $1.92 billion.The RBI data shows that the gold reserves currently amount to $86.16 billion, witnessing a decline of $2.16 billion. India’s Special Drawing Rights (SDRs) with the global financial body, the International Monetary Fund (IMF), increased by $41 million, reaching…

EUR/USD rallies nearly 1% as Powell signaled policy flexibility and acknowledged downside risks in the US labor market.Traders boosted odds of a 25 bps Fed cut in September to 90%, up sharply from 72% on Thursday.Outcome hinges on Core PCE, CPI, and Nonfarm Payrolls before September, with risks skewed toward inflationary pressures.EUR/USD skyrockets during the North American session after Federal Reserve (Fed) Chairman Jerome Powell leaned dovish at his Jackson Hole speech, opening the door for a resumption of the easing cycle. The pair trades at 1.1718, up by 0.97%.Market participants began to price in a Fed rate cut in…

The Dow Jones shattered price records on Friday, hitting above 45,700 for the first time ever.Equities and general risk appetite soared after Fed Chair Powell made a dovish appearance.A September rate cut looks like a sure thing, bolstering general market sentiment.The Dow Jones Industrial Average (DJIA) soared to new all-time highs on Friday, testing above 45,700 for the first time since the index’s inception. The Dow Jones soared over 900 points in a single day as investors piled ferociously back into bullish bets, as a September interest rate cut looks to be in the bag.The Dow Jones is once again…

Gold prices rallied sharply after Powell’s dovish tone highlighted employment risks despite persistent upside risks to inflation.Traders priced in a 90% probability of a 25 basis-point Fed cut, with key data still ahead before September.Next week’s US docket includes Durable Goods, GDP, and the Fed’s preferred inflation gauge, the Core PCE Price Index.Gold prices continue to trend higher on Friday after the Federal Reserve (Fed) leaned dovish, as commented by the Fed Chair Jerome Powell, who said that “downside risks to the labor market are rising.” XAU/USD trades at $3,371 after hitting a daily low of $3,321.The day arrived and…

USD/CHF drops nearly 1% to 0.8000 after briefly hitting a two-week high earlier in the day.Fed Chair Powell struck a cautious balance at Jackson Hole, reinforcing expectations for a September cut.CME FedWatch pricing shows a 90% probability of a 25 bps September cut, up from around 70% earlier in the day.The Swiss Franc (CHF) surges against the US Dollar (USD) on Friday after Federal Reserve (Fed) Chair Jerome Powell’s remarks at the Jackson Hole Symposium triggered a broad-based Greenback selloff. At the time of writing, USD/CHF is trading near 0.8003, down almost 1% on the day after briefly touching 0.8104,…