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Currency markets drifted on Thursday with the yen struggling to retain intervention gains and the dollar pinned near six-week lows, as concerns about a proposed U.S.-Iran deal and jitters about upcoming U.S. payroll data left traders cautious.The yen was little changed at 157.71 per dollar in early trade after weakening for two straight sessions. It has now given back some intervention gains after touching 155.20 per dollar on Monday, but remains well off last month’s multi-decade low of about 164.The euro was little changed at $1.1557, and sterling traded flat at $1.3469. The New Zealand dollar and the Australian dollar…
Yemen’s Iran-backed Houthis said that they had launched a missile attack on a Saudi oil tanker off the coast of the kingdom’s Red Sea port city of Yanbu and another missile attack on a Saudi oil tanker in the Gulf of Aden, Reuters reported on Wednesday.Earlier, the United Kingdom Maritime Trade Operations (UKMTO) reported an incident southeast of Aden but it is unclear whether it was the same attack.A Houthi military spokesman said that the latest attacks were the eighth and ninth Saudi oil tankers targeted since the start of the blockade last month.Market reactionAt the time of writing, the West Texas…
USD/JPY trades around 157.65 on Wednesday at the time of writing, little changed on the day, as weakness in the US Dollar (USD) is offset by investors’ cautious stance toward the Japanese Yen (JPY).The US Dollar remains under pressure after a series of weaker-than-expected US economic releases. The Automatic Data Processing (ADP) report showed that the US private sector added 44K jobs in July, below the market consensus of 70K and following a gain of 98K in June. Meanwhile, the Institute for Supply Management (ISM) reported that its Services Purchasing Managers Index (PMI) came in at 54.1 in July, slightly…
USD/CAD trades around 1.4040 on Wednesday at the time of writing, down 0.14% on the day, as the Canadian Dollar (CAD) benefits from a rebound in Oil prices. Crude prices received support after Yemen’s Houthis claimed responsibility for an attack on a Saudi vessel in the Red Sea, temporarily raising concerns over global energy supplies.However, the upside in Oil prices remains limited by hopes of a diplomatic breakthrough in the Middle East. According to Axios, the United States (US), Iran and Oman are close to reaching an interim agreement to reopen the Strait of Hormuz. The proposed framework would establish…
The Indian rupee ended at its highest level in a month on Wednesday, aided by lower crude oil prices, while the central bank’s widely expected policy pause limited some of the currency’s early gains.The rupee opened 0.5% higher at 94.92 per U.S. dollar, its highest since July 1. Soon after, it surrendered nearly half of the gains to end at 95.1175, its strongest closing level since July 7.The Reserve Bank of India’s decision to hold rates and a recovery in the dollar and oil prices dragged down the rupee from its intraday highs, said Dilip Parmar, a foreign exchange research…
Dow Jones futures rise 0.23% to trade around 54,390 during European hours on Wednesday. Meanwhile, S&P 500 futures gain 0.34% to trade near 7,790, while Nasdaq 100 futures advance 0.14%, trading near 29,900. Investors are maintaining a close watch on the next wave of corporate earnings scheduled for release on Wednesday. High-profile reports expected today include results from Walt Disney, Uber, and SanDisk, which could provide further direction for the market.US stock futures edge higher as market sentiment improved amid growing diplomatic momentum surrounding global energy transit routes. According to a report from Axios, the United States (US), Iran, and…
India’s foreign exchange reserves rose to a near three-month high of $692.9 billion as of July 31, data from the Reserve Bank of India showed on Wednesday.Reserves jumped nearly $10.5 billion compared to the previous week, in their biggest surge since the week ended January 30.A larger pile of foreign exchange reserves gives the central bank greater capacity to defend the rupee, which has been hit by oil price volatility generated by the U.S.-Israeli war with Iran, clouding India’s macroeconomic outlook.Traders said the sharp increase in the size of reserves can be attributed to dollar inflows from a foreign-currency deposit…
The rupee gained 39 paise to 94.89 against the US dollar in early trade on Wednesday supported by falling crude oil prices following progress in US-Iran talks and a pause in planned strikes.Forex traders said investors are closely awaiting the upcoming RBI monetary policy decision for further cues.At the interbank foreign exchange market, the rupee opened at 94.90, then touched 94.89, registering a gain of 39 paise from its previous close.On Tuesday, the rupee closed at 95.28 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.80, down…
The USD/CAD pair trades with a positive bias for the fourth straight day and currently hovers around the 1.4070 region, or a nearly one-week high set the previous day. Spot prices, however, lack bullish conviction amid a combination of diverging forces, which warrants caution before positioning for an extension of the recent bounce from sub-1.4000 levels or the lowest since June 17.Renewed hopes of a potential US-Iran deal to reopen the Strait of Hormuz drag crude oil prices to a nearly four-week low and undermine the commodity-linked Loonie, which, in turn, is seen supporting the USD/CAD pair. Meanwhile, weaker oil…
Currency markets paused for breath on Wednesday as pressure on the Japanese yen eased following recent bouts of intervention and a forceful show of U.S. support, while the dollar held near six-week lows on fresh optimism over the Middle East.The yen was slightly firmer at 157.60 per U.S. dollar, after easing about 0.4% from Monday’s high of 155.20 in the previous session. It remained well above recent 40-year lows of around 164 per dollar.The U.S. will do “whatever it takes” to support Japan’s efforts to stabilize the yen, Treasury Secretary Scott Bessent said on Tuesday, after last week’s joint intervention…