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EUR/CAD extends its gains for the third consecutive day, trading around 1.6110 during the European hours on Monday. The currency cross continues to appreciate as the Canadian Dollar (CAD) faces downward pressure, primarily driven by expectations of a widening interest rate gap between Canada and other major economies.The policy divergent widened after the Bank of Canada (BoC) opted to hold its key policy rate steady at 2.25% during its September meeting. In contrast, both the US Federal Reserve (Fed) and the European Central Bank (ECB) raised their respective benchmark rates by 25 basis points, bringing the Fed funds target range…
The Indian rupee slipped on Monday as oil prices climbed after diplomatic talks between the US and Iran appeared to hit an impasse, sending US bond yields higher and likely drawing the central bank into defending the Asian currency.The rupee declined 0.1% to 95.95 per dollar, averting a fall past the 96 handle on the back of central bank intervention, similar to the market action over recent sessions.Brent rose 2.5% to $107 per barrel after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, keeping tensions in the Middle…
EUR/JPY gains ground after registering modest losses the previous day, trading around 179.70 during Asian hours on Monday. Technical analysis of the daily chart shows that the currency cross continues to trade within a descending channel pattern, pointing to a persistent bearish outlook.The EUR/JPY cross retains a bearish near-term bias as it remains below both the nine-day and 50-day Exponential Moving Averages (EMAs). The short-term EMA sitting just above price hints at immediate topside pressure, while the longer EMA reinforces a broader capped tone. The 14-day Relative Strength Index (RSI) at 41.43 stays below the midline, suggesting weak but stabilizing…
US President Donald Trump said on Sunday that he believes the war with Iran will be won “very soon,” adding that additional military strikes before the midterm elections are possible, Fox News reported. “I think what’s going to happen is we’re going to win this war very soon, and as soon as we win it, the oil will go down, way down to what it was before the war,” said Trump. “And the key is, Iran will not have a nuclear weapon,” he added, saying nuclear deterrence was “key to the whole thing.”Meanwhile, Iran’s Persian Gulf Strait Authority (PGSA) warned shipowners…
Indian rupee coins and a money bag | Photo Credit: AJIJCHAN The rupee is likely to remain in the ₹94.5-96 per US dollar range in the near term, with large dollar inflows through FCNR deposits and external commercial borrowings (ECBs) failing to translate into commensurate appreciation as the funds have largely been added to the Reserve Bank of India’s reserves, a Bank of Baroda research report said.The report said the rupee’s movement has increasingly been shaped by a combination of fundamentals, RBI intervention and market sentiment, making it difficult to attribute currency movements to any single factor. “In the current…
The rupee is likely to remain in the Rs 94.5-96 per US dollar range in the near term, with large dollar inflows through FCNR deposits and external commercial borrowings (ECBs) failing to translate into commensurate appreciation as the funds have largely been added to the Reserve Bank of India’s reserves, a Bank of Baroda research report said.The report said the rupee’s movement has increasingly been shaped by a combination of fundamentals, RBI intervention and market sentiment, making it difficult to attribute currency movements to any single factor.”In the current situation a range of Rs 94.5-96 looks likely in the near…
India’s foreign exchange reserves declined in the week ended September 11, suggesting that most FCNR(B) inflows awaiting conversion with the Reserve Bank may have already been swapped, analysts said.Forex reserves decreased by $4.9 billion to $780.7 billion, after reaching a peak of $785 billion in the previous week. The fall in reserves comes as valuation of gold reserves decreased by $2.6 billion to $111.2 billion, and foreign currency assets decreased by $2.4 billion to $645.7 billion. The decrease in foreign currency assets is likely because the RBI sold dollars in the spot market to prevent the rupee from excess depreciation.On…
Likely regulatory intervention helped the Indian rupee gain 15 paise to close at 95.81 against the US dollar on Friday, bouncing back from the intra-day low of 95.94 and the previous close of 95.96, while the benchmark bond yield rose to 7.14%, the highest level seen in the past four months.Market participants said large public sector banks were seen selling dollars at the behest of the Reserve Bank of India (RBI) in a market with thin volume, helping the local currency recover from the near the 96 level despite global crude price hovering near $105 a barrel and raising the…
Societe Generale notes the Korean Won has been one of Asia’s standout performers, with USD/KRW slipping from around 1,390 to 1,360 as local exporters sold Dollars ahead of the Chuseok holiday. The bank highlights a supportive backdrop, citing South Korea’s strong export engine and a sharp early-September surge in exports, driven by AI-related shipments alongside faster import growth.Won benefits from robust exports”The KRW remained one of the region’s standout performers, although the week was far from smooth.””USD/KRW started the week around 1,390 and retreat to 1,360 this morning as local exporters sold dollars ahead of Chuseok holiday.””The broader backdrop remains…
UOB’s Quek Ser Leang and Lee Sue Ann describe USD/CNH as consolidating after a move to 6.7200, with momentum slowing in the very near term. For the coming days and weeks, they see the pair likely trading between 6.7120 and 6.7220, while a rapid build-up in momentum suggests potential gains toward 6.7250 and major resistance at 6.7330. Longer term, they expect gradual downside while below 6.7815.Range trade with upside potential”24-HOUR VIEW: USD rose to 6.7200 yesterday before closing little changed at 6.7168 (+0.08%). Upward momentum appears to be slowing, but it is too early to expect a sustained pullback. Today,…