Author: admin
The Indian rupee ended modestly weaker on Thursday, weighed down by dollar outflows linked to derivative maturities and overseas debt repayments, while the central bank’s frequent interventions continued to drive volatility expectations lower.The rupee closed down 0.1 per cent at 95.44 per dollar, with its 1-month implied volatility, a gauge of future expectations, easing to 4.2 per cent, the lowest since early March.The currency’s implied volatility has retreated from a little over 5 per cent at the start of the month as the central bank’s frequent interventions kept a firm lid on losses, deterring speculation on the South Asian unit.The…
Michael Wan at MUFG reports that India’s July Consumer Price Index (CPI) rose to 4.45% year-on-year, slightly below consensus but above June’s 4.38%, driven mainly by higher food prices. With inflation still within the RBI’s 2–6% band, Wan expects the central bank to keep a neutral stance for now and delay a projected 50 basis points hiking cycle to start in December 2026.Inflation supports later tightening path”Meanwhile in India, July CPI printed at 4.45%yoy, marginally below consensus estimates of 4.5%yoy but accelerating from 4.38%yoy in June.””Food prices drove the uptick, with consumer food inflation rising to 5.52%yoy from June’s 5.32%yoy,…
The dollar’s advance stalled on Thursday after an overall benign U.S. inflation reading overnight spurred traders to pare back bets for a near-term Federal Reserve interest rate hike.The greenback was little changed against the yen as of Asia’s midday, but remained on course to gain about 1% this week as markets bought back the currency pair following recent joint U.S.-Japan intervention that saw it plummet to a three-month low.The dollar index, which measures the U.S. currency against the yen and five other major peers, was flat at 100 on Thursday, but on course for a 0.4% weekly rise.U.S. consumer prices…
The AUD/JPY cross trades in negative territory near 112.35 during the early European session on Thursday. The Japanese Yen (JPY) edges higher against the Australian Dollar (AUD) as traders are on high alert for further intervention from authorities. Reserve Bank of Australia (RBA) Governor Michele Bullock is scheduled to speak later on Friday. Goldman Sachs Research strategist Karen Fishman said that the JPY’s gains are now fading as the intervention is “not a sustainable fix … ultimately just buys some time.” Meanwhile, the Bank of Japan (BoJ) highlighted growing risks of accelerating inflation in its summary of opinions from the July meeting, with…
Mumbai The Indian rupee closed modestly higher on Wednesday, caught between the negative bias from higher crude oil prices and dollar sales by the Reserve Bank of India that helped counter the pressure.The currency closed at 95.33, 10 paise stronger from its previous close of 95.43. Dollar sales by state run banks, likely on behalf of the RBI, kept the rupee in a narrow range of95.25-95.44 , traders said. The rupee is expected to trade on a stronger footing on Thursday, between 95.00 and 95.50 as a cease fire deal was extended to August 17, which cooled Brent futures to…
The United States (US) and Iran remain at loggerheads over efforts to agree a permanent end to the war in the Middle East, Reuters reported on Wednesday. A senior Iranian source said that there had been no progress in talks to revive the interim deal agreed in June and to define a time frame for its implementation.US President Donald Trump said on Wednesday that Washington has “total control” over the Strait of Hormuz. Iran pushed back on Trump’s claim, insisting the critical waterway remains blocked.US Central Command (CENTCOM) continued to pressure Tehran, with its port blockade on Wednesday forcing dozens of ships…
Commerzbank analysts highlight that Singapore’s final Q2 GDP was revised up, lifting H1 growth to 6.1% year-on-year and prompting MTI to raise its 2026 GDP forecast to 4.5–5.5%. Robust AI-related external demand and financial services underpin the outlook, while USD/SGD has eased to 1.2797 and continues to trend lower from late-June highs near 1.3000.Upgraded GDP backs Singapore Dollar”The economy expanded by 6.1% yoy in H1, prompting the Ministry of Trade and Industry (MTI) to raise its full-year growth forecast to 4.5-5.5% from 2.0-4.0%. MTI cited “better-than-expected performance” of the economy in H1 and an improved H2 outlook, supported by a…
The International Energy Agency (IEA) cut its global Oil supply and demand forecasts for 2026 amid shipping disruptions in the Middle East.In its August Oil Market Report, the agency said, “With an agreement enabling the reopening of Hormuz and unhindered transit through the Bab el-Mandeb Strait still elusive, we have again lowered supply estimates for the rest of the year.”Global Oil supply is now expected to fall by an average of 4.3 million barrels per day (bpd) in 2026 to around 102 million bpd. The agency, however, expects supply to rebound by 8.3 million bpd next year to 110.3 million…
At the interbank foreign exchange, the rupee opened at 95.40 against the greenback and traded in a range of 95.24-95.43 during the session. | Photo Credit: PRIYANSHU SINGH The rupee settled just 3 paise higher at 95.33 (provisional) against the US dollar on Wednesday, as hopes of a quick US-Iran agreement and reopening of the Strait of Hormuz faded.Forex traders said Brent crude is moving towards $90 per barrel amid risk aversion in global markets.At the interbank foreign exchange, the rupee opened at 95.40 against the greenback and traded in a range of 95.24-95.43 during the session. It eventually settled…
The Indian rupee ended modestly higher, wedged between anxiety over the Middle East conflict and the impact of persistent central bank intervention that has helped steady the currency.The rupee ended at 95.33 per U.S. dollar, up 0.1% from its close at 95.4350 in the previous session.While dollar sales from state-run banks – most likely on behalf of the Reserve Bank of India – kept a lid on losses, caution heading into key U.S. and India inflation prints and worries over higher oil prices contained the room for gains, traders said.India’s central bank has intervened frequently in the FX market over…