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The rupee closed 20 paise weaker at 95.39 against the dollar on Monday, making it a three-week low on higher dollar demand.The rupee opened the day at 95.23 a dollar as compared with previous close of 95.18 and depreciated to 95.48 intra-day before retreating a bit at the close of the market.The Indian currency came under pressure on higher dollar demand as traders chased fresh arbitrage opportunities between the local foreign exchange market and offshore non-deliverable forwards market, market participants said.The rise in the dollar index also contributed to the rupee’s weakness, they said. The dollar index was seen hovering…
The Indian rupee depreciated by 20 paise to close at 95.38 against the US dollar on Monday as a stronger greenback pressured emerging market currencies. The rupee depreciated 20 paise to close at 95.38 (provisional) against the US dollar on Monday, as a strengthening greenback weighed on emerging market currencies.At the interbank foreign exchange market, the rupee opened at 95.25 against the American currency and traded in a range of 95.22-95.48 during the session.The rupee finally closed at 95.38 (provisional), down 20 paise from its previous close.On Friday, the rupee appreciated 17 paise to close at 95.18 against the US…
Gold (XAU/USD) edges lower on Monday as a firmer US Dollar (USD) and mild profit-taking cap gains following last week’s rebound from a more than seven-month low of $3,941. At the time of writing, XAU/USD trades around $4,153 after briefly climbing above the $4,200 level during the Asian trading session.Despite the intraday pullback, Gold remains supported, as weaker-than-expected US Nonfarm Payrolls (NFP) data released on Thursday have reduced expectations of an immediate Federal Reserve (Fed) interest rate hike.Meanwhile, Oil-driven inflation risks are also easing as shipping through the Strait of Hormuz continues to improve following last month’s signature of a…
ING’s Chris Turner highlights a sizeable downside breakout in EUR/GBP driven by stale Sterling shorts and lower FX volatility reducing appetite to pay carry. He sees that mindset persisting near term but warns UK politics could return later in July, with limited fiscal space and no Bank of England hikes expected, potentially prompting Sterling to give back some gains.Sterling breakout and looming UK politics”EUR/GBP delivered a sizeable downside breakout last week, which should be respected. Helping that move were stale sterling shorts and a view that if volatility was falling this summer, there was no point in paying away 2%…
At the interbank foreign exchange market, the rupee opened at 95.25. The rupee fell 10 paise to 95.28 against the American currency in early trade on Monday, weighed down by the broad strength of the American currency in the overseas market.Forex traders said whenever fresh foreign inflows enter the country, the central bank is likely to use the opportunity to rebuild its reserve position rather than allowing the rupee to strengthen too much.Moreover, uncertainty prevailed over the progress of US-Iran peace talks keeping a geopolitical risk premium in the market.At the interbank foreign exchange market, the rupee opened at 95.25,…
Gold (XAU/USD) struggles to capitalize on its modest Asian session uptick and trades below a fresh two-week high, levels just above the $4,200 mark, touched this Monday. The US Dollar (USD) attracts some safe-haven flows amid uncertainties stemming from tensions in the Strait of Hormuz and acts as a headwind for the bullion. However, receding bets for rate hikes by the US Federal Reserve (Fed) hold back USD bulls from placing aggressive bets. Furthermore, persistent central bank buying turns out to be another factor lending support to the non-yielding yellow metal.Despite a fragile US-Iran interim agreement, tensions surrounding the Strait…
The U.S. dollar was heading towards its biggest weekly loss in 12 weeks on Friday after Thursday’s tepid U.S. jobs report cooled market expectations for a near-term Federal Reserve interest rate hike, providing relief for the Japanese yen. Broad dollar weakness lifted the euro to $1.1440, after it hit a nearly two-week high the day before. It was up 0.5% on the week. The pound firmed to $1.3352 for a 1.1% weekly gain, its best in nearly three months. The stronger dollar also offered respite for the Japanese yen, which strengthened to less than 161 per dollar, but markets remained…
The upcoming week will bring a fresh test for major currency pairs as investors return from the US Independence Day holiday and continue to digest weaker US labor market data. The release of the last Federal Open Market Committee (FOMC) minutes and Initial Jobless Claims will test the US Dollar’s (USD) resilience.The US Dollar Index (DXY) trades lower near the 100.90 price zone and is set to finish the week with a 0.50% loss. The Greenback will now focus on a relatively light but important United States (US) calendar. Monday will bring the final S&P Global Services PMI and ISM…
UOB’s Quek Ser Leang notes that USD/CNH has seen a slight pickup in downward momentum, but still expects the pair to remain range-bound. The bank now looks for a lower intraday band around 6.7820–6.7940, while its 1–3 week view stays neutral, with USD/CNH likely to trade between 6.7750 and 6.8080.USD/CNH seen holding defined ranges”24-HOUR VIEW: Two days ago, USD traded within a range of 6.7911/6.8025 and closed little changed at 6.7948 (+0.05%). Yesterday, we indicated that “the price action provides no fresh clues, and we continue to expect USD to trade between 6.7860 and 6.7990.” USD then traded within a…
The Kiwi Dollar clears the 0.5700 figure on Friday, clings to gains of over 0.22% against the Greenback after hitting a daily low of 0.5689. At the time of writing, the NZD/USD trades at 0.5709.NZD/USD Price Forecast: Technical outlookThe NZD/USD remains technically bearish, even though interest rate probabilities suggest the Reserve Bank of New Zealand could raise rates at least twice. However, in the short term, the leg-up would test an support-trendline-turned resistance at around 0.5750.The Relative Strength Index (RSI) is rising, suggesting buyers are gaining traction, but it remains below the 50-neutral level. Hence, the overall trend is downwards.For…