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The rupee recovered from record low levels and settled with a loss of 16 paise at 92.17 (provisional) against the US dollar on Thursday as global crude oil prices stayed on an upward trajectory amid the raging war in West Asia.A stronger greenback and volatility in the domestic equity markets further weighed on the rupee, which was already on a weak footing in early trade due to heavy foreign fund outflows, forex traders said.At the interbank foreign exchange, the local unit opened at 92.25 but kept slipping to touch its record intra-day low against the greenback at 92.36. However, it…
ING’s Global Head of Macro Carsten Brzeski argues that the European Central Bank will keep rates unchanged at its 19 March meeting but adopt a more hawkish tone as the war in the Middle East and higher Oil prices revive memories of the 2022 energy shock. The ECB is seen shelving any rate cut discussion and focusing on inflation risks and expectations.War and Oil reshape ECB reaction function”By the time the ECB meets on 19 March, the macro backdrop will have shifted markedly since the last meeting. With the conflict in the Middle East, the risk of inflation undershooting –…
Opening at 92.25 per USD against previous close of 92.04, the rupee so far has tested an intraday high/low of 92.25/92.3650. | Photo Credit: VIVEK PRAKASH The rupee opened 21 paise weaker on Thursday amid heavy FPI selling pressure in the equity markets and the surge of crude oil price to over $100 a barrel in the wake of intensifying West Asia conflict.Opening at 92.25 per USD against previous close of 92.04, the rupee so far has tested an intraday high/low of 92.25/92.3650. Currently, it is trading at 92.3050 per USD, according to CCIL.According to DSP Netra report, every $10…
EUR/USD extends its losses for the third successive session, trading around 1.1540 during the Asian hours on Thursday. The pair depreciates as the US Dollar (USD) remains stronger, as surging energy prices heightened inflationary risks and reduced the likelihood of Federal Reserve (Fed) interest rate cuts.The February US Consumer Price Index (CPI) released on Wednesday showed inflation rising 0.3% month-over-month (MoM) and 2.4% year-over-year (YoY), largely in line with market expectations. Core CPI, which excludes food and energy, increased 0.2% MoM and 2.5% YoY.The relatively steady inflation figures reduced fears of a sudden surge in price pressures and reinforced expectations…
US intelligence showed that Iran’s leadership is still mostly intact and is not at risk of collapse any time soon after over two weeks of nonstop US and Israeli bombardment, Reuters reported on Wednesday.Due to mounting political pressure over soaring oil prices, US President Donald Trump signaled that the largest U.S. military mission since 2003 may finish “soon.” However, if Iran’s hardline leaders remain firmly entrenched, it may be challenging to find a peaceful conclusion to the conflict.Market reactionAt the time of writing, the West Texas Intermediate (WTI) is up 5.50% on the day at $91.78. WTI Oil FAQs WTI…
NZD/USD trades lower on Wednesday, hovering around 0.5910 at the time of writing and down 0.38% on the day. The Kiwi remains under pressure as investors stay cautious amid persistent risk aversion in global markets, driven by escalating geopolitical tensions in the Middle East.The conflict involving the United States (US) and Iran continues to generate uncertainty across financial markets. Military operations in the region are ongoing, while risks of disruptions in the Strait of Hormuz, a key global Oil shipping route, keep energy markets on edge. This situation maintains strong volatility in Oil prices and fuels concerns about rising global…
The Reserve Bank of India (RBI) on Wednesday said it will inject Rs 50,000 crore into the banking system through Open Market Operation (OMO) purchases of government securities on March 13.The auction will take place between 9:30 am and 10:30 am on March 13, the central bank said in a release.This auction is part of the Rs 1-lakh crore OMO purchase of G-Sec announced by the central bank on March 6.The RBI will purchase securities such as 6.45 per cent GS 2029, 7.95 per cent GS 2032, 6.79 per cent GS 2034, 6.64 per cent GS 2035, 7.41 per cent…
MUFG’s Head of Research Derek Halpenny reports that the IEA has proposed a record Oil reserve release of 300–400 million barrels, potentially covering 15–20 days of Strait of Hormuz flows and easing supply constraints for several weeks.Record reserve plan versus Hormuz disruption”The Wall Street Journal is reporting that the IEA has proposed the largest ever release of oil reserves which may be an indication that an agreement has been reached amongst G7 for the release of 300-400mn barrels that had been under discussion since the surge in crude oil prices on Monday.””Given that usually around 20mn barrels of oil are…
The rupee declined 16 paise to settle at 92.01 (provisional) against the US dollar on Wednesday, weighed down by a sharp rise in global crude oil prices and a stronger greenback as the war in West Asia raged on.FII outflows and weak sentiments in the domestic equity markets further pressured the local unit, according to forex traders.At the interbank foreign exchange, the rupee opened at 91.92 against the US dollar and traded in the range of 91.85-92.06 before settling at 92.01 (provisional), down 16 paise from its previous close.The rupee staged a strong recovery from its record low against the…
DBS Group Research strategist Philip Wee argues that the DXY Index’s failed breach of 99.7 signals a turning point for 2026 risk sentiment, as the fading “energy apocalypse” trade and G7/IEA actions reduce safe-haven demand for the Dollar. He highlights that a restrictive +0.75% real rate and 4.4% unemployment now limit USD upside compared with 2022.DXY failure at 99.7 shifts narrative”The DXY Index’s failed breach of 99.7 marks a critical transition in the 2026 risk narrative.””While the DXY’s failure at 99.7 was triggered by the oil price collapse, the underlying resistance is rooted in a Fed that is already in…