Author: admin
Opening about 131 paise stronger against the previous close of 94.8125, the Indian currency closed at 94.83 per US dollar. The rupee saw wild swings on Monday, moving a whopping 170 paise intraday. It breached the 95 level per dollar for the first time before closing at a new low of 94.83 on the last day of trading in the current financial year.Reserve Bank of India’s (RBI) measures, announced last Friday, asking banks authorised to deal in foreign exchange to unwind long dollar positions in the domestic forex market initially strengthened the rupee substantially below the 94 level.However, it reversed…
The British Pound (GBP) collapses on Monday as Middle East escalations push the US Dollar (USD) higher, while Oil prices extend their gains for the fourth consecutive trading day. At the time of writing, the GBP/USD trades at 1.3184, down by more than 0.50%, hitting a four-month low.Sterling sinks as oil rises, Fed bets ease, UK outlook dims aheadMarket mood has improved slightly as US President Donald Trump said that the current Iranian regime seems “reasonable.” However, he added that if Iran’s new regime doesn’t open the Strait of Hormuz, the conflict could escalate after the arrival of 3,500 troops…
Societe Generale analysts note the INR rallied over 1% after RBI intervention and new limits on banks’ net open FX positions, but the currency remains down 4% this month amid heavy FPI outflows. They warn the relief is likely short‑lived given trade and fiscal headwinds and rising 10‑year IGB yields near 7.0%.Intervention bounce versus structural headwinds”The INR rallied by over 1% to 93.53/USD low after intervention by the RBI.””The central bank directed commercial banks to limit their net open positions in the rupee in the FX markets to $100m at the end of each business day (effective 10 April) vs…
The Indian rupee fell to a record low for the third straight session on Monday, finding only fleeting relief from the central bank’s tightening of banks’ forex position caps, as the outlook for Asian currency remained weak amid the Middle East war.The rupee weakened past the 95 per dollar mark for the first time to 95.21 per dollar, falling 0.3% from the previous close.The unit is on course to log its steepest fiscal year drop since 2011-12, as the Mideast war has raised risks for India’s inflation and growth outlook, adding to the strain from global trade frictions, geopolitical flare-ups…
The rupee pared its initial gains and hit a historic low of 95.22 in intra-day trade on Monday, rising oil prices, ongoing geopolitical tensions, and a strong dollar environment continuing to keep pressure on the currency.The rupee, which opened on a strong note after the Reserve Bank brought down the net open position that banks can keep overnight at USD 100 million, erased the gains and fell 160 paise from its opening level.At the interbank foreign exchange, the rupee opened at 93.62 and then gained further ground to 93.57 against the US dollar, registering a gain of 128 paise from…
BNY’s Bob Savage argues that Eurozone stagflation risks are building as energy pressures rise, with headline CPI pushed higher by fuel while core remains contained. He expects the European Central Bank (ECB) to stay cautious and watch second-round effects, and sees aggressive front-end hike pricing in the Eurozone and United Kingdom (UK) as likely to be pared back in a volatile process.Energy shock, CPI and ECB pricing”The International Energy Agency’s special briefing for EU finance ministers will likely trigger additional national-level support for motorists and industry. Shortages are not as acute as in the emerging world, and most scenarios point…
The central bank’s surprise cap on forex positions gave the battered rupee a brief reprieve on Monday, but bankers and analysts say the steps will hit banks’ trading revenue and that economic risks will erode currency gains.The Reserve Bank of India opened a new front in its fight for currency stability on Friday, asking banks to limit net open rupee positions to $100 million, shifting to an absolute dollar limit from a previous cap of 25 per cent of total capital.The change represents a tightening and comes as the war between Iran and the US and Israel pushes up oil…
Gold (XAU/USD) reverses a modest Asian session slide to the $4,420 area and looks to build on Friday’s strong gains of over 2.50%. The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, struggles to find acceptance above the 100-psychological mark and retreats slightly from the vicinity of the highest level since November 2025, touched earlier this month. This turns out to be a key factor offering some support to the commodity. However, expectations of higher interest rates globally might keep a lid on any meaningful appreciation for the non-yielding yellow metal.Investors now seem convinced that…
Reuters is reporting the latest comments delivered by US President Donald Trump in his interview with the Financial Times (FT).Key quotesThe US could ‘take the oil in Iran’.The US could seize the export hub of Kharg Island,Number of Pakistan-flagged oil tankers Iran had permitted through the Strait of Hormuz had now been doubled to 20.Could take Kharg Island ‘very easily’.Iranians have no defense on Kharg Island.Discussions with Tehran are “doing extremely well” and expressed optimism that a deal could be reached “pretty soon.” Indirect talks via emissaries progressing well.A deal could be made ‘fairly quickly’.Separately, the Wall Street Journal (WSJ) reported…
Banks will be forced to unwind their long dollar positions in the domestic forex market following a late-Friday directive from the Reserve Bank of India (RBI), a move that could push the Rupee up by as much as 100 paise against the US Dollar when markets open on Monday.The RBI’s March 27 direction mandates that authorised dealers keep their Net Open Position–Indian Rupee (NOP-INR) in the onshore deliverable market within $100 million at the end of each business day, effectively curbing large long-dollar bets that have been adding to pressure on the domestic currency.The move comes after the Rupee has…