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At this stage of India’s economic journey, growth must remain the central priority. Sustained growth is what will move millions more Indians into the middle class and ultimately help India achieve its ambition of becoming a developed nation. This is therefore not the time to compromise on growth through aggressive interest rate increases.There is currently strong market chatter around increasing interest rates to manage three emerging concerns: depreciation of the rupee, possible inflationary pressures, and pressure on the fiscal deficit. While these concerns are real, increasing interest rates is not the most appropriate response at this stage of the economy.…

Betting against the rupee at current levels is a low-probability trade, and the data now favours allocating toward rupee-denominated assets across both equities and bonds, a report by DSP Mutual Fund has suggested.The rupee’s Real Effective Exchange Rate was at 89.7 at the end of April 2026 and is estimated to have slipped below 88 when USD-INR breached 96.9 on May 20, 2026, BIS data shows. Outside of the 2013 twin deficit crisis and the 2008 Global Financial Crisis, this is the most competitive the currency has been.On a trade-weighted basis, the rupee is fundamentally undervalued, creating a strong margin…

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann expect USD/SGD to edge lower intraday toward 1.2760, though a sustained break is seen as unlikely, with major support at 1.2730 intact. On a 1–3 week horizon, UOB keeps a neutral stance, looking for range trading between 1.2730 and 1.2820. Over 1–3 months, the pair is viewed as broadly supported below strong resistance at 1.2880–1.2900.Dollar-Singapore Dollar holds in defined band”24-HOUR VIEW : USD rose to a high of 1.2830 two days ago and then dropped sharply to 1.2763. When USD was at 1.2780 yesterday, we indicated that “the sharp…

The AUD/USD pair edges lower during the North American session on Friday, poised to remain sideways within key technical support and resistance levels, with the 20-day Simple Moving Average (SMA) at 0.7187 and the 50-day SMA at 0.7095. At the time of writing, the pair is trading around 0.7137, down 0.17%.AUD/USD Price Forecast: Technical outlookFrom a technical perspective, AUD/USD market structure suggests further downside if the pair falls below the April 29 swing low at 0.7101, reaching a 4-week low at 0.7079 on May 19.The Relative Strength Index (RSI) turned bearish, signaling that sellers are gaining momentum, as it fell…

DBS Group Research economists Radhika Rao and Chua Han Teng highlight that ASEAN-6 economies are experiencing asymmetric inflation outcomes despite a common energy shock. Indonesia and Malaysia show relatively contained inflation, while Thailand, Vietnam and Philippines face higher readings. Rising WPI/PPI point to pipeline pressures, with policymakers expected to stay alert and some central banks, including Indonesia, Philippines and Vietnam, likely to raise rates further.Divergent inflation and tightening prospects”While ASEAN-6 economies face the same energy shock, their inflation outcomes have been asymmetrical. On the benign end of the spectrum, inflation in Indonesia and Malaysia remained contained at 2.4% yoy and…

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann expect USD/CNH to trade quietly between 6.7920 and 6.8060 intraday after recent moves failed to generate fresh momentum. On a 1–3 week horizon, the bank holds a neutral view, seeing current price action as part of a range between 6.7820 and 6.8220. Over 1–3 months, the rebound still has scope to break above 6.9720, facing strong resistance near 6.9960.Dollar-Yuan stuck in range-trading phase”24-HOUR VIEW: USD dropped to a low of 6.7981 two days ago. Yesterday, when USD was at 6.8010, we stated that “while there has been an increase…

OCBC notes USDSGD is trading choppily in a subdued range, closely tracking moves in the USD, Oil and UST yields. The bank sees mild bullish momentum starting to fade and maintains a bias to sell rallies, with key support around 1.2720/60 and 1.2650/70 and resistance near 1.2840/50. The S$NEER remains comfortably above its model-implied mid.Singapore Dollar supported on rallies”USD/SGD traded choppy in subdued range, tracking the moves in USD, oil and UST yields.””Pair was last around 1.2780 levels.””Mild bullish momentum on daily chart shows early signs of it fading while RSI eased.””2-way trades still likely though bias remains to sell…

Silver (XAG/USD) remains range-bound on Friday as traders avoid aggressive positioning amid uncertainty surrounding US-Iran negotiations. At the time of writing, the white metal trades near $76.00 and is likely to close the week on a flat note.In the latest developments, Iran’s Foreign Ministry spokesperson said, “We cannot necessarily say that we have reached a point where an agreement is close,” according to Tasnim News Agency. The spokesperson also said, “Details related to the nuclear issue are not being discussed at this stage,” according to Islamic Republic News Agency (IRNA), adding, “We will not reach a conclusion if we try…

Gold price edges lower during the day as the Greenback recovers some ground amid doubts that the US and Iran could reach a deal to end the conflict, and traders are pricing in a Federal Reserve (Fed) rate hike by the end of the year. At the time of writing, XAU/USD trades at $4,518, down 0.50%.XAU/USD falls as US Dollar strength pressures Bullion demandThe Greenback is weighing on the yellow metal, underpinned by hawkish remarks of a Fed official. The US Dollar Index (DXY), which tracks the buck’s performance against a basket of six currencies, is up 0.07%, at 99.26.Oil…

ING economists Min Joo Kang and Lynn Song expect the Bank of Korea to leave policy rates unchanged this week but to adopt a more hawkish tone. They see updated dot plots pointing to one or two rate hikes within six months, alongside upgraded GDP and CPI forecasts. Strong chip production and resilient activity data are expected to support South Korea’s growth outlook.BoK seen steady but turning hawkish”We expect the Bank of Korea to keep rates unchanged on Thursday, but signal a hawkish stance.””Dot plots should indicate one or two rate hikes within six months, with the BoK upgrading its…