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West Texas Intermediate (WTI) US Oil trades around $78.45 at the time of writing on Monday, down 7.76% on the day, as investors unwind the geopolitical risk premium following announcements of a potential agreement between the United States (US) and Iran.US President Donald Trump said that a large-scale military strike against Iran had been suspended after Tehran agreed to the framework of a deal covering its nuclear program and the reopening of the Strait of Hormuz. The US President also said that talks between the two countries are scheduled to begin on Monday afternoon, fueling expectations of a de-escalation that…
The RBI made a net sale of $14.9 billion in the foreign exchange market during January-May 2026 to contain excessive volatility in the rupee, the government informed Parliament. The RBI’s foreign exchange intervention during January-May 2026 amounted to a net sale of USD 14.9 billion to check excess volatility of the rupee, Parliament was informed on Monday.The value of the Indian Rupee (INR) is market-determined, with no target or specific level or band, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha.“The Reserve Bank of India (RBI) regularly monitors the foreign exchange market…
Nordea economists Kjetil Olsen and Sara Midtgaard expect Norges Bank to leave the policy rate at 4.25% at next week’s meeting. They highlight that June core inflation was well below the Bank’s projection and see July data remaining subdued. With unemployment and the Norwegian krone broadly in line with forecasts, they anticipate no immediate move while awaiting more inflation evidence.Rate decision preview and inflation”We expect Norges Bank to leave the policy rate unchanged at 4.25% next week.””With inflation clearly below Norges Bank’s forecast, and with both unemployment and the Norwegian krone broadly in line with the June projections, a revised…
Chris Turner at ING argues EUR/USD should be performing better given solid Eurozone data, lower Oil prices and Japanese US Dollar (USD) selling, but notes possible US activity in EUR/JPY as a short-term drag. He stresses that the Federal Reserve’s (Fed) September decision and this week’s US data will determine whether EUR/USD tests 1.1615/20 resistance or falls back below 1.15.Fed decision to steer trend”EUR/USD should probably be doing better, buoyed by decent eurozone hard data last week, lower oil prices and lots of dollar selling from Japan. The fact that it is not may partially be owed to the news…
Silver price (XAG/USD) rises after registering modest gains in the previous day, trading around $58.20 per troy ounce during the Asian hours on Monday. Silver prices climb as market sentiment shifted following statements from US President Donald Trump, who announced that peace talks with Iran are set to resume on Monday. The prospect of diplomacy helped send oil prices lower, offering relief to investors concerned about rising inflation and the broader outlook for interest rates.President Trump noted that key Middle Eastern allies, including Saudi Arabia, had urged him to halt planned military strikes in favor of a diplomatic solution, while…
The USD/JPY pair recovers some lost ground to near 157.65, snapping the three-day losing streak during the early Asian trading hours on Monday. Traders remain on high alert for further intervention from the US and Japan after coordinated operations in Tokyo and New York last week triggered a dramatic rebound in the currency.Bloomberg reported that Japan’s Finance Ministry and US Treasury Secretary Scott Bessent are now working together to a degree unseen in decades to shore up the currency. Bessent said that the US wouldn’t hesitate to step into the market again. Meanwhile, Japan confirmed the first joint intervention with…
Mumbai: Hardening overseas rates, tough competition and strong client demand is forcing banks to tweak their FCNR (B) offerings to attract maximum dollars as banks get into the busy season of the special scheme.ICICI Bank and HDFC Bank, two of the largest private sector banks have both hiked a section of their FCNR (B) rates noting the changed scenario. With overseas rates also higher more banks could join in hiking rates in this scheme, people familiar with banks’ plans said.While ICICI has hiked the rate on its FCNR (B) deposits for $5 million or above to 6.25% from 6%, HDFC…
Capital inflows and proactive measures by the Reserve Bank of India (RBI) helped limit the Indian rupee’s decline in July, even as global crude oil prices surged more than 20 per cent amid escalating geopolitical tensions in West Asia, according to a Bank of Baroda (BoB) research report.The report noted that the rupee depreciated by only 0.8 per cent in July, despite a sharp rise in oil prices, supported by a weaker US dollar, strong foreign capital inflows and RBI intervention in the foreign exchange market.“INR traded cautiously in Jul’26 amidst an escalation in geo-political conflict. It depreciated by only…
Japanese Finance Minister Satsuki Katayama will announce on Monday that Tokyo and Washington took joint action in the currency market to arrest the yen’s slide to 40-year lows, two Japanese government officials told Reuters.Katayama is likely to stress the two countries’ determination to combat what they consider excessive yen declines, said the sources familiar with the matter, on condition of anonymity due to the sensitivity of the matter.One source, asked if Katayama would announce “joint action”, said yes, adding, “The operation is still ongoing.”The Ministry of Finance could not immediately be reached for comment on Sunday. U.S. Treasury officials did…
Mumbai: India’s foreign exchange reserves increased by $6.1 billion to $682.3 billion in the week ended July 24, as inflows from the Reserve Bank of India’s FCNR(B) deposit scheme started to trickle in.Foreign currency assets increased by $4.8 billion to $555.9 billion in the previous week. This increase is despite the central bank heavily selling dollars in the foreign exchange market last week to contain the rupee’s fall. The currency had closed at 96.56 on July 24, very close to its record low of 96.96 as oil prices traded above $100 per barrel.”The pick-up in reserves is likely due to…