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West Texas Intermediate (WTI) futures on NYMEX trades 6% higher on the day, slightly above $83.00 during the European trading session on Wednesday. The Oil price bounces back strongly after snapping a three-day losing streak amid fears of a prolonged energy supply squeeze due to Iran’s intentions to bring a toll system into effect at various chokepoints around the Middle East.During the day, a report from Reuters showed that Yemen’s Houthis are considering imposing fees on commercial ships sailing through the Southern Red Sea. Houthis are mulling a toll system on Bab el-Mandeb Strait, gateway to almost 7% of the…
Weak dollar ahead of the US Federal Reserve’s interest rate decisions also supported the rupee | Photo Credit: desifoto The rupee rose 16 paise to 95.66 (provisional) against the US dollar on Wednesday, extending its gaining streak for the fourth straight session, amid hectic buying in domestic equity markets and lower global crude prices.Foreign capital inflows and a weak American currency ahead of the US Federal Reserve’s interest rate decisions also supported the local unit, forex traders said.At the interbank foreign exchange, the rupee opened at 95.70 and touched the intraday low of 95.80 against the greenback. The unit hit…
The Indian rupee strengthened to a near three-week peak on Wednesday, supported by a rally in local stocks and traders trimming bearish positions ahead of the U.S. Federal Reserve’s policy decision later in the day.Traders also said that state-run banks sold dollars in short-lived bursts, blunting pressure from dollar demand related to the monthly futures expiry.The rupee closed at 95.6475 per dollar, up 0.2% from Wednesday’s closing level. The currency touched a peak of 95.49 earlier in the session, its strongest level since July 10.Meanwhile, Brent crude jumped more than 3.5% to $87.1 per barrel, as Middle East tensions escalated…
MUFG’s Lee Hardman notes that the Australian Dollar, a beneficiary of AI-related demand, has weakened after another softer-than-expected Australian Consumer Price Index (CPI) release. Core inflation undershot the Reserve Bank of Australia’s (RBA) May forecasts, easing pressure for further tightening. Hardman highlights that this lower starting point for inflation reduces the urgency for additional RBA hikes, with market-implied odds for one final move later in 2026 now close to 50:50.Australian CPI surprise weighs on AUD”The Australian dollar has also been one of the beneficiaries from increased demand related to the AI buildout.””The Australian dollar has weakened overnight although it was…
The Indian rupee rose on Wednesday as dollar sales from state-run and foreign banks blunted pressure from demand tied to the monthly expiry of exchange traded futures as traders kept an eye on volatile oil prices.The rupee rose 0.14% to 95.72 per U.S. dollar, hovering around its strongest level in two weeks.Traders pointed to a short burst of dollar sales by a mid-sized state-run lender, which pulled the rupee modestly higher even as heightened demand to buy dollars at the daily reference rate exerted pressure.The reference rate is the daily benchmark used to settle contracts and often attracts concentrated dollar…
EUR/JPY moves little after registering modest gains in the previous day, trading around 186.60 during the Asian hours on Wednesday. The currency cross is maintaining a bullish near-term tone as it holds above both the nine-period and 50-period Exponential Moving Averages (EMAs). The alignment of short- and medium-term EMAs below price suggests ongoing upside pressure.Additionally, the 14-day Relative Strength Index (RSI) around 60 keeps a constructive bias without yet signaling overbought conditions. However, the daily chart technical analysis shows that the EUR/JPY cross is remaining within a rising wedge, indicating a strong bearish reversal risk.The EUR/JPY cross may test the…
The Yen trades a fraction under 164.00 on Tuesday, marginally weaker on the day, inside a 30-pip band with a floor above 163.50 and a high a few ticks beneath the standing cycle extreme. That extreme is the currency’s weakest level against the Dollar in four decades, and the pair has now spent three sessions grinding at it without a meaningful pullback.What makes that stillness remarkable is the backdrop it declined to notice. Tuesday delivered the largest single-session equity shock in Asia this year, and the currency that is supposed to be bought when Asia breaks did not move.A haven…
Mumbai: Two of India’s largest banks, State Bank of India (SBI) and HDFC Bank are together raising an aggregate of at least $1.7 billion through loans from foreign banks as they shore up their dollar resources to take advantage of the Reserve Bank of India’s (RBI) special facility to attract dollars into the country.SBI is raising $1 billion through a five-year loan from HSBC and Japanese bank MUFG which will be syndicated to other lenders next month. This is in addition to the $500 million India’s largest lender had raised, first through a $300 million three-year senior unsecured floating-rate bond…
The Euro is on track for its eighth gain in nine sessions against the Pound, and the explanation that would normally cover a run of that length is not available. Bank Rate sits 150 basis points above the European Central Bank deposit rate, precisely where it has sat since the middle of June, and that spread is what dragged this cross to a one-year low in the first place. The gap has not moved. The cross has.The spread that never narrowedCurrencies do not trade the rate differential printed on the screen. They trade the one the forward curve expects to…
Private-sector hiring in the US has further cooled in mid-July. According to the NER Pulse, the weekly companion to the ADP National Employment Report, companies added an average of 15K jobs per week in the four weeks ending July 11.That marks another pullback from the prior reading (16.5K), showing an extra impasse in hiring.Market reactionThe Greenback creeps higher, extending its multi-day recovery and prompting the US Dollar Index (DXY) to trade closer to its yearly peaks well past the 101.00 hurdle. Employment FAQs Labor market conditions are a key element to assess the health of an economy and thus a…