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During European trading hours, ECB officials: François Villeroy de Galhau and Madis Muller delivers remarks on inflation and geopolitical uncertainty.ECB policymaker and governor of Bank of France François Villeroy de GalhauECB will remain vigilant.We are in the face of uncertainty.WE have the ability to act as necessary.ECB Governing Council member Madis MullerThe current situation isn’t unprecedented.Inflation will probably be a bit higher.Market reactionThe Euro (EUR) has reacted positively to comments from a string of ECB officials after the blackout period. As of writing, EUR/USD is down 0.14% to near 1.1572 but has recovered from its intraday low of 1.1552. ECB FAQs The…

The rupee crashed 60 paise to a fresh intra-day low of 93.49 against the US dollar on Friday as the greenback strengthened further and FII outflows continued unabated amid the ongoing West Asia conflict.Elevated global crude oil prices put further pressure on the local unit, forex traders said, adding that even positive sentiments at the domestic equity markets could not prevent the crash.Suggestions that global crude oil prices may hit $180/barrel also weighed on sentiments.At the interbank foreign exchange, the local unit opened at 92.92 against the greenback and soon breached the 93-mark for the first time. The local unit…

The rupee on Friday weakened past 93 to the US dollar mark for the first time, with rising crude oil prices in the wake of the ongoing war in West Asia and capital outflows, including FPI-related, continuing to pressure it.Opening at an all time low of 92.92 per USD, down 29 paise over the previous close, the rupee is currently trading at 93.22. In intraday trade so far, the Indian currency hit a high/ low of 92.88/93.22Madan Sabnavis, Chief Economist, Bank of Baroda, noted that the currency market has faced considerable disruption with the onset of the war.“Post February 28th,…

Gold price (XAU/USD) rebounds to near $4,735, snapping the seven-day losing streak during the Asian session on Friday. The precious metal edges higher as the ongoing US-Iran conflict spikes demand for safe-haven assets. Traders will closely monitor the situation in the Middle East.Iranian Foreign Minister Abbas Araghchi vowed to show “ZERO restraint” if the country’s energy infrastructure were hit again, per Bloomberg. Meanwhile, Saudi Foreign Minister Faisal bin Farhan Al Saud warned that the kingdom’s restraint isn’t “unlimited” and added it could take military action. Rising geopolitical risks could boost traditional safe-haven assets such as Gold in the near term.On the…

European Union (EU) leaders called for a moratorium on military strikes on energy and water facilities in the Middle East amid growing concerns about the impact of the Iran war on the global economy, Reuters reported on Thursday. “The European Council calls for de-escalation and maximum restraint, the protection of civilians and civilian infrastructure and full respect of international law by all parties,” the leaders of the EU’s 27 countries said in written conclusions of a summit in Brussels.The EU leaders welcomed “the increased efforts announced by Member States, including through strengthened coordination with partners in the region, to ensure freedom…

West Texas Intermediate (WTI) US Oil trades around $97.20 per barrel on Thursday, down 1.68% on the day after reaching an intraday high of $100.15, as markets balance improving supply conditions against escalating geopolitical risks.Crude Oil prices pull back after the United States (US) partially eased sanctions on Venezuela, allowing companies to resume limited dealings with the country’s state-owned Oil firm. This move helps ease global supply concerns, further supported by the resumption of crude flows from Iraq’s Kirkuk fields to Turkey’s Ceyhan port.At the same time, the White House announced a temporary waiver of the Jones Act, allowing foreign…

Gold (XAU/USD) extends its decline on Thursday, slipping to over a one-month low as shifting near-term macroeconomic dynamics overshadow its traditional safe-haven appeal, despite heightened geopolitical tensions from the ongoing US-Israel war with Iran.At the time of writing, XAU/USD is trading around $4,617, its lowest level since February 2, remaining on the back foot for a seventh consecutive day.Gold has remained under sustained downside pressure since Middle East tensions escalated, as the surge in Oil prices triggered fresh inflation concerns, reinforcing the global “higher-for-longer” interest rate narrative, which reduces the appeal of the non-yielding metal. This view was further supported…

The RBI focused much of its intervention in offshore markets, particularly through non-deliverable forwards. | Photo Credit: FRANCIS MASCARENHAS India ramped up use of a key tool for defending the rupee to record levels as the currency weakened to an all-time low against the dollar, according to people familiar with the matter.The Reserve Bank of India’s net-short dollar book, a measure of the degree it has sold forward its stockpile of US currency, is nearing $100 billion across offshore and onshore markets, said the people, who asked not to be identified as the information is private. The measure was $67.8…

ING’s Francesco Pesole argues that recent mixed signals from global central banks will likely encourage the ECB to avoid firm guidance, especially given its sensitivity to Oil after 2022. With around 55bp of hawkish repricing in one-year ECB expectations, ING sees dovish risks for Euro rates and expects EUR/USD could trade back close to 1.140 by week’s end.ECB repricing points to downside risks”The four G10 central banks that have met so far this week have sent mixed signals to the ECB. The Reserve Bank of Australia has brought forward a cut that appeared scheduled for May, the Bank of Canada…

Gold (XAU/USD) stages a modest recovery from the $4,800 mark, or the lowest level since February 6, touched during the Asian session on Thursday, amid a modest downtick in the US Dollar (USD). Moreover, heightened geopolitical uncertainties turn out to be another factor offering some support to the safe-haven bullion. However, the US Federal Reserve’s (Fed) hawkish outlook could limit deeper USD losses and cap the non-yielding yellow metal, warranting caution for bullish traders.Energy infrastructure in Persian Gulf countries came under attack today following Israeli strikes on Iran’s South Pars natural gas field – the world’s largest. In response, US…