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RBI’s frequent but mild interventions earlier to curb sharp falls have also left traders struggling to gauge how much weakness policymakers could allow. | Photo Credit: FRANCIS MASCARENHAS The Reserve Bank of India likely intervened across market segments on Friday, seven traders told Reuters, stepping up defence of the currency as it threatened to breach record low levels pressured by surging oil prices.The central bank likely intervened in the dollar-rupee non-deliverable forward (NDF), onshore spot and forward markets as the rupee slid in the NDF market before local markets opened at 9 am IST.Right before the open, the currency was…
ING’s Warren Patterson and Ewa Manthey report that Gold has come under pressure as higher Oil prices stoke inflation concerns and push yields and the US Dollar higher. They note that safe-haven demand has been limited despite geopolitical risks, with recent gains driven mainly by dip-buying and short covering. The analysts see $4,000/oz as a key near-term support level.Higher yields and Dollar weigh on bullion”Gold fell as escalating tensions in the Middle East pushed energy prices higher, raising concerns that inflation could remain elevated and keep monetary policy restrictive for longer.””Despite ongoing geopolitical risks, gold has struggled to attract meaningful…
First Abu Dhabi Bank PJSC is offering funding up to $1.5 billion to non-resident Indians investing in their home country’s foreign-currency deposit program, according to people familiar with the matter.The United Arab Emirates’ largest lender is targeting customers based in the Middle East and is in talks with banks in India that could issue standby letters of credit to back the financing, the people said, asking not to be identified because the discussions are private. A standby letter of credit is a bank guarantee that ensures payment if the borrower defaults.The move by FAB alongside other foreign and Indian banks…
India’s central bank likely sold dollars on Friday, helping the rupee avoid a record low amid pressure from surging oil prices and weak stocks. State-run banks were spotted selling dollars just before the local market opened at 9 a.m. IST, most likely on behalf of the Reserve Bank of India, traders said. The selling continued in early trade, pulling the rupee up to 96.50 per U.S. dollar after it fell to 96.80 on the interbank order-matching system. The currency was up 0.1% from the previous session at 96.5725 at 10 a.m. IST. The rupee’s all-time low of 96.96 was hit…
The rupee rose 22 paise to 96.51 against the US dollar in early trade on Friday on likely RBI intervention to stem its further slide after global crude oil prices crossed the $100-mark owing to heightened tensions in West Asia.A softer greenback provided mild support to the local unit while FII outflows, coupled with sustained slide in the domestic equity markets, maintained pressure, forex traders said.At the interbank foreign exchange, the rupee opened weaker at 96.81 before rising to 96.51, up 22 paise from its previous close.The rupee ended 20 paise weaker at 96.73 against the US dollar on Thursday.The…
The AUD/JPY cross trades in positive territory around 114.25 during the early European trading hours on Friday. The Australian Dollar (AUD) strengthens against the Japanese Yen (JPY) on a strong Australian employment report for June. Australia’s Unemployment Rate stayed at 4.4% in June, according to the official data released by the Australian Bureau of Statistics (ABS) on Thursday. The figure came in line with the market consensus. Meanwhile, the Employment Change came in at 76.3K in June from a rise of 44K in May (revised from 40.3K), better than the forecast of a 15K increase.Nonetheless, fears of currency intervention from Japanese authorities could…
The United States (US) will impose new tariffs of between 10% and 12.5% on imports from most major trading partners, its biggest move yet to reconstruct US President Donald Trump’s tariff wall that was pierced by the Supreme Court, Bloomberg reported on Thursday. The duties target key economic partners, including the United Kingdom (UK), China, the European Union (EU), Canada, Japan and India. They come in on Friday, as a temporary 10% levies on foreign goods introduced earlier this year expires.The fresh measures follow an investigation into the alleged failure of around 60 economies to prevent forced labor in their supply…
US President Donald Trump said he is close to deciding whether to launch a new military operation against Iran, according to Israel’s N12. Trump said he is “considering a massive attack greater than anything before,” adding that Israel would join the operation “within two minutes” if requested. However, he stressed that the United States (US) would not need assistance to carry out the attack. Meanwhile, two regional sources familiar with mediation efforts said Iran’s leadership had not accepted the latest proposal presented by intermediaries.Key quotes:I’m considering a massive attack greater than anything before. I’m close to making a decision.Israel would…
Rabobank’s Senior FX Strategist Jane Foley highlights the strong year-to-date performance of the Australian Dollar (AUD), supported by the Reserve Bank of Australia’s (RBA) hawkish stance and Australia’s commodity-linked profile. However, Foley notes headwinds from a firmer US Dollar (USD) and a weaker Australian trade balance, and expects AUD/USD to consolidate around 0.70 over a three‑month horizon.RBA pricing caps near term gains”Despite higher prices for petrol and diesel, it is undeniable that the Australian labour market has remained resilient. The release of June employment data showed an increase of 76.3K jobs, far stronger than expected. The news increased market bets…
At the interbank foreign exchange, the rupee opened at 96.53 and traded in a narrow range of 96.45-96.59 during the day before eventually settling at 96.57 (provisional), down 4 paise from its previous close. The rupee declined 4 paise to close at 96.57 (provisional) against the US dollar on Thursday, as heightened hostilities in West Asia kept global crude oil prices elevated.However, a likely intervention by the RBI provided support to the local unit, forex traders said.At the interbank foreign exchange, the rupee opened at 96.53 and traded in a narrow range of 96.45-96.59 during the day before eventually settling…