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The rupee pared losses and settled on a flat note at 85.40 (provisional) against the US dollar in a volatile trade on Wednesday amid rising crude oil prices and a negative trend in domestic equities. Forex traders said increased month-end dollar demand added strength to the American currency, keeping the local unit under pressure, while investors also moved cautiously awaiting cues from domestic macroeconomic data. India’s industrial production data for April will be released later in the day, while the GDP growth figures for the first quarter of FY26 are scheduled to be announced on Friday. At the interbank foreign…

The Indian rupee ended nearly flat on Wednesday, as the impact of month-end dollar demand from importers was offset by an uptick in regional peers. The rupee closed at 85.36 against the U.S. dollar from 85.33 in the previous session. The unit weakened to 85.70 earlier in the session, but recouped most losses as the dollar index eased. Traders built up intra-day shorts on the rupee in anticipation of outflows related to an equity block deal but the price action indicated that the flows did not materialise as expected, a trader at a Mumbai-based bank said.British American Tobacco sold a…

USDJPY outlook turned bullish after Japanese bond market intervention and easing U.S.-EU trade tensions lifted the pair. A bullish reversal pattern formed, hinting at a short-term bottom, but the broader trend remains bearish. Market focus now turns to U.S. data for further dollar strength and to Japanese yields for signs of renewed yen support. The USD/JPY outlook has shown a mild shift in sentiment, stemming from the recent surge in US dollar and yen’s weakness. However, the situation is complex due to a mix of monetary policy divergence and short-term political developments. –Are you interested in learning more about Canadian…

The US Dollar Index holds its position after posting more than half a percent gains in the previous session.US Consumer Confidence Index rose to 98.0 in May from an 86.0 reading prior.The Greenback appreciated as US yields fell over Japan’s potential cuts in government debt issuance.The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is steadying after registering more than 0.50% gains in the previous session. The DXY is trading around 99.60 during the European hours on Wednesday. Traders await the FOMC Minutes due later in the North American session.The US…

The rupee fell 23 paise to 85.63 against the US dollar in early trade on Wednesday, dragged down by strengthening American currency and an uptrend in crude oil prices. The local unit also remained under pressure due to increased dollar demand at the end of the month from exporters and banks, even though foreign fund inflow stayed muted amid mixed sentiment in domestic equity markets, forex analysts said. Also, investors moved cautiously, awaiting cues from domestic as well as global macroeconomic data. At the interbank foreign exchange, the domestic unit opened at 85.59 and fell further to 85.71 before trading…

EUR/USD depreciates as the US Dollar strengthens, as US yields weaken due to Japan’s potential cuts in government debt issuance.The Greenback gains ground ahead of the May 7 FOMC Meeting Minutes release on Wednesday.Trump expressed his satisfaction as the EU is speeding up the process to reach a trade deal with the United States.EUR/USD continues its losses for the second successive day, trading around 1.1310 during the Asian hours on Wednesday. The pair depreciates as the US Dollar (USD) draws support and as US yields depreciate following Japan’s indication of potential cuts in government debt issuance, which has boosted global…

Federal Reserve Bank of New York President John Williams said on Wednesday that he wants to avoid inflation becoming highly persistent because that could become permanent.Key quotesImportant that inflation expectations are well anchored.Want to avoid inflation becoming highly persistent because that could become permanent.Way to avoid that is to respond relatively strongly when inflation begins to deviate from the target.Misperceptions about ‘r star’ can lead to long-lasting deviations.We have to be very aware that inflation expectations could shift in any way that could be detrimental.You want the whole curve of inflation expectations to be well-behaved.It’s not to say inflation expectations shouldn’t…

Philip Lane, the chief economist of the European Central Bank, indicated that although the majority of factors suggested a continued decline in euro area inflation, there were also concerns, such as the possibility of unsuccessful EU-US trade negotiations, that could lead to an increase in inflation.He stated in an interview with Germany’s Frankfurter Allgemeine newspaper that they needed to find a middle path when questioned about the implications for interest rate policy.Lane added that they would respond with further interest rate cuts if they saw signs of further falling inflation. However, it was noted that the scope of the discussion…

Durable Goods Orders in the US declined less than expected in April.The US Dollar Index stays in positive territory above 99.00.Durable Goods Orders in the United States (US) declined by 6.3%, or $19.9 billion, in April to $296.3 billion, the US Census Bureau reported on Tuesday. This reading followed a 7.6% increase (revised from 9.2%) reported in March and came in slightly better than the market expectation for a decrease of 7.9%.”Excluding transportation, new orders increased 0.2%,” the press release read. “Excluding defense, new orders decreased 7.5%. Transportation equipment, also down following four consecutive monthly increases, drove the decrease, $20.3…

The Indian rupee and its regional peers weakened on Tuesday as the greenback rose against major peers and Asian equities declined, with rupee traders also pointing to month-end dollar payments from importers that weighed on the local unit. The rupee closed at 85.33 against the U.S. dollar, down 0.3% on the day. The South Asian currency has experienced choppy moves over recent trading sessions, quickly reversing course from a fall past 86 last week to touch a two-week high of 84.78 on Monday and then shedding those gains in the face of a firmer dollar.The rupee’s very-near-tenor implied volatility -…