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The Indian rupee closed nearly unchanged on Tuesday after hitting a two-month low earlier in the session as crude oil prices continued to dictate the currency’s momentum while likely central bank intervention limited weakness.The rupee had declined 0.2% to 96.1475 in early trading but trimmed losses to close nearly flat at 95.98 as Brent oil prices turned lower on the day, after touching a peak of nearly $108 per barrel.India imports nearly 90% of its crude requirements, making the rupee one of the world’s most vulnerable currencies to the Middle East oil shock.Dollar sales by state-run banks, most likely on…
EUR/CAD halts its three-day winning streak, trading around 1.6100 during the European hours on Tuesday. The currency cross experiences downward pressure as the Euro (EUR) softens ahead of key economic data releases from the European Commission and an upcoming address by European Central Bank (ECB) President Christine Lagarde at the 2026 ECB/ESCB Legal Conference titled “Independence, not isolation: central banks and their connections with other authorities” in Frankfurt.ECB President Lagarde previously told a European Parliament committee that a measured monetary policy remains appropriate, citing a lack of evidence that rising energy prices are driving wage growth.Meanwhile, the Canadian Dollar (CAD)…
The Reserve Bank of India’s foreign exchange operations have soaked up an estimated $20 billion of excess rupee liquidity, two bankers said, with dollar-rupee swaps playing a prominent role in liquidity management.The RBI has used a combination of dollar-rupee sell-buy swaps, spot dollar sales, bond sales and variable-rate reverse repos in recent weeks to drain excess liquidity from the banking system.Those measures, along with tax outflows, have more than halved the banking system’s liquidity surplus from a record ₹11.16 lakh crore ($116.10 billion) in the first week of the month.Economists have said the decline was evident in core liquidity, which…
The rupee depreciated 16 paise and slumped below the psychologically important 96 per dollar level in early trade on Tuesday weighed down by elevated crude oil prices and persistent foreign fund outflows.Forex traders said the rupee is under pressure largely due to the combination of firm oil and rising US nominal and real yields, which together are drawing portfolio flows out of emerging markets, including India.At the interbank foreign exchange market, the rupee opened at 96.03, then fell to 96.13 against the US dollar, registering a fall of 16 paise from its previous close. On Monday, the rupee had settled…
Gold (XAU/USD) attracts some buyers during the Asian session on Tuesday, reversing a part of the previous day’s heavy losses to the $4,100 neighborhood, or its lowest level since August 4. The bearish fundamental backdrop, however, warrants some caution before positioning for any meaningful appreciating move for the precious metal. The US Federal Reserve’s (Fed) hawkish outlook, elevated US bond yields, and geopolitical uncertainties keep the US Dollar (USD) pinned near a two-month high, which, in turn, acts as a headwind for the commodity.The US central bank delivered the widely expected 25 basis point (bps) rate hike—its first in over…
The Reserve Bank of Australia (RBA) is widely expected to raise the Official Cash Rate (OCR) by 25 basis points (bps) to 4.60% from 4.35% on Tuesday, after keeping rates unchanged at its previous two meetingsThe decision will be announced at 04:30 GMT, accompanied by the Monetary Policy Statement (MPS), and followed by RBA Governor Michele Bullock’s press conference at 05:30 GMT.The Australian Dollar (AUD) braces for a big reaction to the RBA policy announcement and Bullock’s press conference, as underlying inflation remains elevated while labor market conditions are easing. Focus on RBA Governor BullockWith a rate hike all but certain,…
Rabobank’s RaboResearch Global Economics & Markets FX Strategy team notes that USD net long speculative positions were broadly unchanged, with both longs and shorts rising modestly. The Federal Reserve raised its overnight policy rate by 25bp on September 16, matching expectations. The OIS curve indicates investors still anticipate more than three Fed hikes by the end of next year.Fed path keeps Dollar supported”USD net longs are largely unchanged as both long and short positions increased by 2,000 positions, respectively.””The Fed released its decision to hike the overnight policy rate by 25bp at the September 16 meeting, in line with market…
Kolkata: The rupee slipped about 0.2% to 95.9825 a dollar Monday despite reported central bank interventions, reflecting the impact of the equities bloodbath that saw D-Street gauges slump to their lowest in FY27, even as surging US bond yields and crude oil prices roiled currencies and growth assets across the Asia Pacific. The rupee, which has resumed its losing streak despite a resounding diaspora response to forex-inflow programs, slumped to 96.34 in the offshore non-deliverable forward (NDF) market, pressuring the morning trade in the Mumbai spot market, said forex consultant KN Dey.The spot rupee touched 95.99 intra-day, marking the lowest…
The United States (US) and Iran are expected to resume indirect talks as early as Monday or Tuesday, according to an official briefed on the negotiations cited by Reuters.Mediators are expected to hold separate talks with US and Iranian representatives. Iranian Foreign Minister Abbas Araghchi and Qatari mediators remain in the US ahead of the discussions.The talks are expected to focus on an amended version of a seven-day proposal presented by Iran on the sidelines of the United Nations General Assembly (UNGA).Market reactionFinancial markets show a relatively muted reaction to the latest diplomatic developments. The US Dollar Index (DXY), which…
The rupee depreciated 28 paise to close at 96.03 (provisional) against the US dollar on Monday, on risk-off sentiments in global markets after the US rejected a deal proposal by Iran, diminishing hopes of reopening of the Strait of Hormuz.Forex traders said global risk sentiments deteriorated as the stalemate between the US and Iran continued; falling risk assets and a surge in crude oil prices may continue to pressurise the rupee.At the interbank foreign exchange market, the rupee opened on a negative note at 95.89 against the American currency. During the day, the local unit slipped further to close at…