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The Indian rupee fell to a record low on Monday, as an escalating Middle East conflict stoked worries over sustained disruption of energy supplies, threatening the outlook for Asia’s third-largest economy.The rupee fell to 93.95 against the U.S. dollar, eclipsing its previous low of 93.7350 hit on Friday.Asian currencies were down between 0.1% to 0.8% as hopes for an off-ramp to hostilities dimmed over the weekend with Washington and Tehran trading threats as the war entered its fourth week.The conflict has boosted oil prices by over 50% this month. The International Energy Agency has said the crisis is worse than…
Gold price (XAU/USD) tumbles to around $4,460 during the early Asian trading hours on Monday. The precious metal remains under selling pressure amid a stronger US Dollar (USD), rising bond yields and concerns about inflation linked to energy prices. Ongoing conflicts in the Middle East push energy prices higher and reduce expectations of US interest rate cuts. This, in turn, could weigh on the non-yielding Gold in the near term. The Federal Reserve (Fed) held interest rates steady at a target range of 3.50% to 3.75% following its March meeting last week. The median “dot plot” projection still suggested one 25-basis-point (bps) rate cut later…
Here is a rundown of latest headlines surrounding the crisis in the Middle East as the United States (US) and Israel’s war against Iran enters the fourth week:US President Donald Trump said on Saturday that they will “obliterate” Iran’s power plants, starting with the biggest one, if they refuse to open the Strait of Hormuz within 48 hours.Iran warned that it will retaliate and target all US-linked energy infrastructure in the Middle East if the US attacks its power plants. In a statement published on Sunday, Iran’s Revolutionary Guards said that the Strait of Hormuz will be completely closed if…
The Indian rupee plunged as much as 110 paise on Friday, recording its steepest single-day rout since late 2022, after oil surged amid an unrelenting barrage of attacks by either side on respective energy installations in West Asia. It slumped to a historic low of 93.73 amid a report that New Delhi paid a significant price premium for its Thursday oil supplies before the unit closed at 93.71/$.The pace of decline was rather quick, seemingly compensating for the Thursday trading holiday in Mumbai, with traders saying that market estimates of the central bank’s short dollar positions and sustained sales of…
Silver price (XAG/USD) retreats late in the North American session, down by over 6.80% in the day, poised to finish the week with losses of more than 15.70%, posting its second-largest weekly loss since the one that ended down 17.39% on January 30. At the time of writing, XAG/USD trades at $67.89.XAG/USD Price Forecast: Technical OutlookAlthough turned bearish this week, Silver remains upward biased as long as the bulls keep spot prices above the February 6 swing low of $64.10. In the short term, XAG/USD turned negative after falling below the 100-day SMA at $72.55, which exacerbated a drop below…
A Reuters poll revealed that the Bank of Mexico, also known as Banxico, is expected to keep interest rates steady at 7% at the March 26 meeting amid concerns about the Middle East war.If Banxico keeps rates unchanged, it would be the second consecutive time the central bank has opted for a wait-and-see approach, after reducing rates 12 times since the easing cycle began.The survey revealed that 16 of 28 economists expect Mexico’s main reference rate to remain unchanged, while a minority of participants — including analysts at Goldman Sachs and JPMorgan — project a resumption of Banxico’s easing cycle,…
The US Dollar (USD)i weakened this week, with the US Dollar Index (DXY) slipping back below 100.00 to 99.60 on Friday after a surge in the middle of the week driven by the Federal Reserve’s (Fed) decision to hold rates in the 3.50%-3.75% range. The war in Iran is nearing the end of its third week, with the Strait of Hormuz still effectively closed as Oil prices remain high. Reports indicate that the Pentagon is deploying thousands of additional Marines to the region, suggesting that a swift resolution is unlikely. Additionally, Fed’s Chair Jerome Powell has cautioned that inflationary pressures…
Gold (XAU/USD) price extended on Friday its losses for the eighth straight day, poised to end the week down by more than 8.50% as Oil prices continued to rally, boosting the haven appeal of the Greenback. The jump in US Treasury yields and market participants’ pricing in no rate cuts by the Federal Reserve (Fed) keep the yellow metal downward pressured.Gold set for 8% weekly loss as Fed rate cut bets vanish, Middle East conflict escalatesAt the time of writing, XAU/USD trades at $4,560, down nearly 2% in the day. The US Dollar Index (DXY), which measures the buck’s performance…
The Swiss Franc (CHF) trades flat against the US Dollar (USD) on Friday, reversing part of its earlier gains as the Greenback eases slightly from daily highs. At the time of writing, USD/CHF is trading around 0.7878 after briefly touching the 0.7900 mark. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is trading near 99.54 after retreating from an intraday high of 99.79.Despite the modest pullback in the Greenback, it remains up nearly 0.30% on the day, limiting follow-through selling pressure in USD/CHF. However, the Franc remains relatively firm across the…
The Rupee recorded one of its biggest single day falls in recent times, sinking 108 paise against the US Dollar and weakening well past the 93 mark, as hardening crude oil prices due to the ongoing West Asia War, FPI-related outflows from the equity markets and a strong Dollar weighed on it.The Indian currency (INR) closed at an all-time low of 93.71 per USD against the previous close of 92.63. Opening weaker at 92.89, INR tested an intraday high/low of 92.88/93.7575.The last time the Rupee fell by more than 100 paise was on June 4, 2024. Then the INR crashed…