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The rupee fell to a record low on Friday on concerns that the Iran war-induced surge in oil prices could disrupt the South Asian nation’s growth-inflation dynamics and dent capital flows, with traders also pointing to elevated offshore dollar bids.The rupee weakened to 92.4750 per dollar, eclipsing its previous all-time low of 92.3575 hit on Thursday. It closed at 92.4550, down 0.7% on the week.Likely intervention helped limit the currency’s losses, traders said.Investors are bracing for a prolonged conflict as the Middle East war nears the two-week mark, keeping energy prices elevated. The conflict has also prompted foreign investors to…
The Indian rupee fell to a record low on Friday on concerns that the Iran war-induced surge in oil prices could disrupt the South Asian nation’s growth-inflation dynamics and dent capital flows, with traders also pointing to elevated offshore dollar bids.The rupee weakened to 92.4750 per dollar, eclipsing its previous all-time low of 92.3575 hit on Thursday. It closed at 92.4550, down 0.7% on the week.Likely intervention helped limit the currency’s losses, traders said.Investors are bracing for a prolonged conflict as the Middle East war nears the two-week mark, keeping energy prices elevated. The conflict has also prompted foreign investors…
Statistics Canada will release its Labour Force Survey on Friday, and market participants expect a modest uptick in job creation in February, with the Employment Change foreseen at 10K following the -24.8K in the previous month. At the same time, the Unemployment Rate is forecast at 6.6%, following the 6.5% posted in January. Employment data gains relevance ahead of the Canadian Consumer Price Index (CPI) data scheduled for next Monday, and the Bank of Canada (BoC) monetary policy announcement a couple of days later. The BoC left its benchmark interest rate unchanged at 2.25% for a second consecutive time at…
The Indian rupee fell to a lifetime low on Friday, strained by worries over how the Iran war-spurred surge in oil prices will impact the growth-inflation dynamics and capital flows for the South Asian economy. A prolonged Middle East conflict could significantly worsen the rupee’s outlook, analysts said, warning that persistently high energy prices may push the currency beyond 95 per dollar. The rupee dropped to 92.4325 per dollar, eclipsing its previous all-time low of 92.3575 hit on Thursday. It was down about 0.2% on the day and has lost 1.5% since the Iran war broke out.It would likely have…
The rupee hit a fresh all-time intra-day low of 92.44 against the US dollar on Friday, down 19 paise from its previous close, as rising global crude oil prices amid the raging West Asia conflict kept international markets on the edge.A stronger greenback, heavy FII outflows and sustained selling in the domestic equity markets further weighed on the rupee, according to forex traders.At the interbank foreign exchange, the local unit opened at 92.33 and kept losing ground to hit a fresh intra-day low of 92.44 against the US dollar, down 19 paise from its previous close.The rupee fell 24 paise…
The AUD/JPY cross remains on the back foot for the second consecutive day and trades just above mid-112.00s during the Asian session on Friday. Spot prices, however, lack bearish conviction, warranting some caution before positioning for an extension of this week’s modest pullback from the vicinity of the 114.00 mark, or the highest level since 1990.The Japanese Yen (JPY) reached levels that prompted the so-called rate checks in January, fueling speculations that authorities would step in to stem further weakness in the domestic currency. This turns out to be a key factor acting as a headwind for the AUD/JPY cross.…
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $95.75 during the early Asian trading hours on Friday. The WTI price surges due to the effective closure of the Strait of Hormuz amid conflict involving the United States (US), Israel, and Iran.US crude oil prices have risen more than 40% since the start of the war. The International Energy Agency (IEA) warned that the US-Israeli war on Iran was “creating the largest supply disruption in the history of the global oil market.”Iran’s new supreme leader, Mojtaba Khamenei, said in his first public statement since being appointed that the closure of the…
HSBC stresses stable income as crucial in the current environment and maintains bonds as a core portfolio component. With inflation largely contained and rate-cut cycles nearing completion, the bank prefers UK gilts, Australian government bonds and selected emerging market debt, favouring investment grade over high yield and medium-to-long duration in EUR and GBP, while keeping medium duration in USD.Income strategies across sovereign and credit”Stable income is critical in an evolving financial and geopolitical landscape, both as a source of returns and a means to reduce portfolio volatility, supporting bonds as a key portfolio component in both good and bad times.””We’re…
ING’s Francesco Pesole highlights the Australian Dollar as a key G10 outperformer, supported by strong RBA hike expectations and high Oil prices. Markets now assign a 70% probability to a 25bp hike next week, with AUD/USD seen targeting 0.7200 if equities hold up. However, aggressive positioning raises the risk of a post‑decision correction.RBA pricing lifts Aussie but risks build”The Aussie dollar remains the big winner in G10.””Equity instability remains a major correction risk for AUD, but we must also note that markets are turning rather aggressive in pricing another RBA hike on 17 March.””The implied probability of a 25bp increase…
The Indian rupee hit a record low on Thursday as the latest attacks on oil and transport facilities across the Middle East pushed up crude prices, likely prompting central bank intervention to limit the currency’s fall. The rupee fell to an all-time low of 92.3575 per dollar earlier in the day, but pared some losses as energy prices retreated modestly. The currency ended at 92.19, down 0.16% from the previous session. Brent futures rose to a peak of $101.6 per barrel and were last quoted at $96.87. The conflict involving the U.S., Israel and Iran has spread across the Middle…