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NZD/USD inches lower after opening at a bullish gap, trading around 0.5640 during the Asian hours on Monday. The pair remains in the positive territory as the US Dollar (USD) remains subdued on easing safe-haven demand following reports that Washington and Tehran have agreed to halt attacks against each other before peace talks resume in Doha this week.However, traders remain cautious amid fluid Middle East headlines, assessing regional stability and its impact on global risk sentiment. This diplomatic window opens after days of retaliatory strikes, which began Thursday when an Iranian projectile hit a cargo vessel. Both Washington and Tehran…
The US dollar is now on track for a 2.5% gain for June, which marks the biggest monthly advance since July last year. | Photo Credit: istock.com The U.S. dollar was on the defensive on Monday but remained on track for its biggest monthly gain in nearly a year, due to tension in the Gulf and ahead of jobs data that could shape the Federal Reserve’s rate path.The U.S. and Iran traded fresh barbs over the weekend before they agreed to stop tit-for-tat attacks and meet in Qatar on Tuesday, leaving investors nervous about a fragile ceasefire.Oil prices rose on…
Renewed Middle East hostilities, foreign portfolio flows and U.S. rate-hike bets will drive the Indian rupee and government bonds as traders return from a long weekend.The rupee closed at 94.3950 per U.S. dollar on Thursday, little changed on the week but on course for its first month-on-month gain since February. Indian markets were closed on Friday for a local holiday.Over the weekend, Iran struck U.S. military sites in Kuwait and Bahrain after President Donald Trump threatened to target Iranian leaders unless they upheld the interim peace deal.The focus will yet again turn to oil prices, with any retreat in risk…
Mumbai: The success of the Reserve Bank of India’s June measures to attract foreign currency inflows will hinge on whether the country can strengthen its balance of payments (BoP) over the next three to five years, economists said, warning that these steps only defer external sector risks.The central bank earlier this month offered a concessional swap facility for external commercial borrowings (ECBs) and foreign currency non-resident bank (FCNR[B]) deposits to attract dollar inflows amid a sharp depreciation of the rupee, effectively buying policymakers time at a cost largely borne by the RBI.The inflows, however, are temporary. As ECBs mature and…
The AUD/USD pair trades on a flat note around 0.6895 during the early Asian session on Monday. Traders continue to assess the developments surrounding talks to end the US war with Iran. The Reserve Bank of Australia (RBA) will publish the minutes of its monetary policy meeting on Tuesday. All eyes will be on the US employment report later on Thursday. Reuters reported on Sunday that the US and Iran agreed to pause recent hostilities in the Gulf and renew talks regarding their dispute over the Strait of Hormuz. Both countries plan to meet in Qatar on Tuesday. This development came after several…
The dollar fell for a second straight session on Friday as recent economic data and a drop in oil prices slightly cooled expectations for Federal Reserve rate hikes, although the yen remained in territory that left it primed for an intervention. Despite the recent declines, the greenback was still up for the week and on pace for its strongest monthly percentage gain since July after hitting a 13-month high earlier in the week. Thursday’s data showing a key measure of U.S. inflation met economists’ expectations and easing oil prices, down about 4% on Friday, have moderated rate-hike bets slightly.Markets are…
HSBC portrays Vietnam as one of Asia’s fastest-growing economies, supported by booming electronics exports and import-intensive manufacturing. However, a widening trade deficit and elevated Oil prices are eroding the current account surplus and pushing inflation above the State Bank of Vietnam’s ceiling. The bank trims its external surplus forecast and raises its 2026 inflation projection.Fast expansion with external and price pressures”Despite moderating from last year’s 8%, the country saw rather decent growth of 7.8% y-o-y in 1Q26. This easily made Vietnam sustain its position asone of Asia’s fast-growing economies.””Nevertheless, a detailed look at trade data shows Vietnam’s trade resilience. Exports…
OCBC’s FX strategists Sim Moh Siong and Christopher Wong highlight that USD/SGD has eased as US Dollar (USD) momentum softened on core Personal Consumption Expenditures (PCE) Price Index data, with the pair around 1.2960. Bullish daily momentum remains, but Relative Strength Index (RSI) is turning lower from overbought, and they are monitoring whether this turnaround extends or attracts dip-buying. They flag potential distortion from quarter-end flows and outline nearby support and resistance levels.Pair eases as USD momentum softens”USD/SGD found reprieve overnight as USD momentum eased on core PCE data. Pair was last at 1.2960 levels.””Bullish momentum on daily chart remains…
HSBC notes that Thailand’s 1Q26 growth beat expectations on the back of strong electronics exports and robust private investment and consumption, supported by AI-related activity and fiscal stimulus. However, non-AI sectors face Chinese competition, and consumption is expected to cool as subsidies fade. The bank upgrades 2026 growth but cuts its 2027 forecast and sees inflation easing below 2%.Short-term boost, medium-term headwinds”Growth in 1Q26 exceeded expectations, accelerating to 2.8% y-o-y despite the turmoil in the Middle East. Sectors and industries that are part of the data centre and AI supply chains were particularly buoyant.””Goods exports from Thailand surged 15.5% y-o-y…
DBS Group Research’s Ma Tieying expects South Korea’s June exports to remain very strong, with year-on-year growth around 50–60% and the trade surplus widening above USD30bn. AI-related semiconductor demand and higher memory prices are seen offsetting energy imports. Headline and core CPI are forecast to rise further, and the Bank of Korea is projected to deliver two 25bps rate hikes by 4Q.Exports strength and CPI upside”June trade and inflation data will be the key focus ahead.””Exports are expected to maintain strong growth of 50-60% yoy for the fourth consecutive month, based on the preliminary data for the first 20 days…