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The Australian Dollar (AUD) trades almost flat at around 0.7100 against the US Dollar (USD) during the European trading session on Tuesday, but is close to its over two-month high of 0.7130 posted on Monday.The Aussie pair trades broadly firm as the US Dollar is under pressure, with financial markets pricing out the possibility of a Federal Reserve (Fed) interest rate hike in September.Fed seen on extended pause as softer US data tempers hike betsAnalysts at HSBC Asset Management highlight that “market pricing for a September Federal Reserve rate hike has fallen to its lowest level since mid-June,” as investors…
The rupee depreciated 7 paise to 95.68 against the US dollar in early trade on Tuesday, weighed down by elevated crude oil prices and persistent demand for greenback.Forex traders said Brent crude near USD 91 per barrel increased oil-related dollar demand and the Reserve Bank’s earlier-than-expected closure of the concessional FCN (B) forex-swap facility raised concerns over future dollar inflows.At the interbank foreign exchange, the rupee opened at 95.68, down 7 paise from its previous close. On Monday, the rupee depreciated 19 paise to close at 95.61 against the US dollar.The rupee opened lower as oil prices rose with the…
The AUD/JPY cross trades in positive territory around 113.40 during the early European trading hours on Tuesday. The Japanese Yen (JPY) weakens against the Australian Dollar (AUD) amid mounting fiscal concerns and persistent inflationary pressures. Traders await the release of the Australian jobs data, which is due later on Thursday. Prime Minister Sanae Takaichi’s plan to cut the consumption tax on food to 1% for two years has raised market concerns, as the government has yet to identify an alternative revenue source and the measure is viewed as an ineffective way to combat inflation. Additionally, markets are also concerned about elevated…
The rupee was already facing a “challenging” outlook, and the RBI’s decision has made the picture considerably weaker, a currency trader at a private sector bank said. | Photo Credit: FRANCIS MASCARENHAS The rupee is poised to open weaker on Tuesday, with rising oil prices and US bond yields adding to pressure on the currency from the central bank bringing forward the deadline for its swap facility for deposits raised from non-resident Indians.The rupee is expected to open in the 95.68 to 95.72 range, traders said, after settling at 95.6025 to the dollar on Monday. Brent crude climbed past the…
The U.S. dollar held near multi-month lows against most major currencies on Tuesday as traders walked back expectations of near-term monetary tightening, although the imminent threat of an escalation in the Middle East war left sentiment fragile.The euro fetched $1.1581 in early Asian hours, not far from the two-month high of $1.1614 it touched on Monday. Sterling was at $1.3548, just shy of the three-month peak it touched in the previous session.Data showed last week that U.S. retail sales fell in July for the first time in nine months, following unexpected job losses last month and mild inflation readings. The…
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $84.00 during the early Asian trading hours on Tuesday. WTI steadies as traders continue to assess the developments surrounding Middle East conflicts. The United States (US) and Iran ruled out an extension of the Memorandum of Understanding (MoU) that they signed in June to end the conflict. Bloomberg reported on Monday that US President Donald Trump said that he is not interested in renewing the expiring agreement with Tehran. Trump insisted that Washington had leverage over Iran, citing the naval blockade of Iranian ports. “We control it with the blockade, and I like…
The Dollar Index trades near 99.50, roughly a tenth of a percent lower, having opened directly on its 200-day Exponential Moving Average (EMA) and failed there inside the first minutes, with a session low just above 99.25 taking out the August range. That is the tape on the day a 60-day framework meant to end the war over the Strait of Hormuz expires with nothing agreed to replace it, which is not how a haven currency is supposed to behave on a deadline.The haven bid went somewhere elseA senior Iranian official told Reuters the country may move from a defensive…
The RBI’s FCNR(B) scheme has attracted more than $52 billion, strengthening its ability to support the rupee, but global monetary conditions have limited currency appreciation. The Reserve Bank of India’s FCNR(B) deposit mobilisation scheme has attracted more than $52 billion so far and could have crossed $80 billion, including related foreign currency borrowings, had the window remained open until the original September-end deadline. Yet, unlike the 2013 FCNR(B) programme, the rupee has failed to stage a meaningful appreciation, highlighting the influence of global monetary conditions over exchange-rate movements.Why 2013 was differentThe contrast with 2013 is striking. The earlier FCNR(B) scheme,…
TD Securities economists Oscar Munoz and Eli Nir expect US output growth to move sideways in 2025 as the lingering Oil shock and Iran conflict create stagflationary risks, keeping the Fed on hold. They see GDP growth slightly below trend in 2026, with 2.1% Q4/Q4, unemployment near 4.3%, and only gradual disinflation resuming in 2027.Sideways growth with stagflationary risks”We expect output growth to move sideways this year, reflecting the lingering impact of the oil shock. The Iran conflict presents stagflationary risks, which we expect will keep the Fed on hold for the entire year. AI and high-income consumers have supported…
The Indian rupee slipped on Monday after the central bank unexpectedly shortened the deadline for its discounted forex swap facility for non-resident deposits, several traders said.Persistent importer dollar demand further weighed on the rupee, while likely intervention limited losses, extending a pattern seen last week.The rupee was at 95.60 per dollar, its weakest level in two weeks, and down 0.2% on the day.The Reserve Bank of India said late on Friday it is bringing forward by a month the cutoff for its discounted forex swap facility, following more than $50 billion in inflows from non-resident Indian deposits.”There are some jitters…