Author: admin
MUMBAI: India’s foreign exchange reserves appear to be showing early signs that targeted central bank measures to attract overseas capital might be gaining some traction, although experts believe a more accurate assessment of the programs will be possible only later – perhaps in September.The country’s stockpile of assets denominated in foreign currencies rose $7.26 billion to $674 billion in the week ended July 3, the latest data from the Reserve Bank of India (RBI) showed.Of the total reserves, foreign currency assets increased $4.5 billion to $545.5 billion, while gold reserves increased $2.6 billion to $105.2 billion during the week.This suggests…
The US Dollar Index (DXY) trades within a volatile range on Friday as a sparse US economic calendar leaves traders watching developments in the Middle East after renewed hostilities between the United States (US) and Iran this week. Even so, the latest flare-up has provided only limited support, with the DXY set to finish the week virtually unchanged.At the time of writing, the index, which tracks the Greenback’s value against a basket of six major currencies, is trading around 100.85 after slipping to a one-week low of 100.60 earlier in the Asian session.On Friday, US President Donald Trump said in…
UOB’s Quek Ser Leang notes USD/SGD remains range-bound, with intraday action expected between 1.2905 and 1.2940 as recent price moves provided no fresh directional clues. Over the next one to three weeks, the bank sees mild downward pressure as having eased, projecting a broader 1.2890–1.2990 range. On a one to three month horizon, a break above 1.3000 could target 1.3095.Dollar seen consolidating in ranges”24-HOUR VIEW: We noted “a slight increase in upward momentum,” but we pointed out that “it is insufficient to indicate a continued rise in USD.” We indicated that USD “is more likely to trade in a higher…
India’s forex reserves jumped $7.26 billion to $674.193 billion during the week ended July 3, the Reserve Bank of India said on Friday.In the previous reporting week, the forex kitty had dropped by $5.654 billion to $666.933 billion.The kitty had expanded to an all-time high of $728.494 billion during the week ended February 27 this year before the onset of the Middle East conflict, which led to several weeks of a drop as the rupee came under pressure and the RBI had to intervene in the forex market through dollar sales.Prime Minister Narendra Modi has also made multiple public appeals…
TD Macro Research expects the Canadian labour market to soften in June, with employment unchanged versus market expectations for a 10k gain after May’s 87.8k surge. They see the unemployment rate steady at 6.6% and wage growth for permanent workers rising modestly to 3.6% year-on-year, only partly reversing May’s sharp deceleration.Jobs surge seen mean-reverting”We look for the Canadian labour market to return to a softer footing in June with employment forecast to remain unchanged (market: +10k) after the creation of 87.8k jobs last month as the unemployment rate holds at 6.6% with a stable participation rate.””Monthly business surveys have been…
The Indian rupee ended nearly flat on Friday but declined from a week earlier as renewed hostilities in the Middle East made investors cautious about exposure to oil-sensitive currencies and sparked a modest pickup in importer hedging.Global stocks rose on the back of AI-related enthusiasm in Asia over the U.S. market debut of South Korean chip bellwether SK Hynix. Regional currencies gained with the Japanese yen lifted by news of plans to encourage pension funds to increase their holdings of domestic financial assets.The rupee ended at 95.3250 per dollar, little changed from its close in the previous session and fell…
While global equities and regional currencies gained on AI-driven optimism, investors remained wary of the fragile West Asia ceasefire and its implications for energy prices and inflation. The Indian rupee ended nearly flat on Friday but declined from a week earlier as renewed hostilities in the Middle East made investors cautious about exposure to oil-sensitive currencies and sparked a modest pickup in importer hedging.Global stocks rose on the back of AI-related enthusiasm in Asia over the U.S. market debut of South Korean chip bellwether SK Hynix. Regional currencies gained with the Japanese yen lifted by news of plans to encourage…
The Euro (EUR) remains on the defensive against the British Pound (GBP) on Friday, with the EUR/GBP pair unable to take off from one-year lows at the 0.8515 area. Data from Germany and France confirmed that inflationary pressures moderated in June, which added pressure on the common currency.In Germany, the final Harmonized Index of Consumer Prices (HICP) confirmed previous estimations showing that inflation grew at a 2.4% year-over-year (y-o-y) rate in June, down from 2.7% in May and from April’s 2.9% peak. Monthly inflation contracted 0.2%, also in line with preliminary estimations, following a 0.1% contraction in May. Likewise, France’s…
The Indian rupee drifted in a narrow range on Friday, on a broadly softer dollar and well-contained oil prices, though traders remained wary of taking a strong directional position due to lingering Middle East risk. The rupee was up 0.1% at 95.31 per dollar, from its close at 95.3875 in the previous session. Asian currencies rose, benefiting from softer pricing of U.S. Federal Reserve rate hikes that curbed the dollar. Regional stocks were stronger as well, with India’s benchmark Nifty 50 stock index up 1%.The spotlight though remains on oil prices after renewed back-and-forth attacks between the U.S. and Iran…
The rupee rose 15 paise to 95.32 against US dollar in early trade on Friday as the greenback weakened and oil prices eased despite intensifying tensions in West Asia.FII outflows and uncertainties over fresh tensions in West Asia weighed on the local unit while a strong start to the day’s trade at the domestic equity markets provided support, according to forex traders.The US launched new airstrikes against Iran on early Thursday, and Tehran responded by targeting US-allied West Asian countries in an exchange of fire that threatened an interim deal intended to help end the war.Back-and-forth attacks, including a day…