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The rupee depreciated 11 paise to 96.36 against the US dollar in early trade on Wednesday as crude oil prices climbed on renewed geopolitical tensions, and demand for the US dollar increased as investors moved toward safe-haven assets. Forex traders said concerns over the security of oil shipments through the Red Sea and Strait of Hormuz continue to support crude oil prices. Moreover, Houthi threats against shipping and ongoing US-Iran hostilities have kept a geopolitical risk premium in the market, they said.At the interbank foreign exchange market the rupee opened at 96.36, registering a fall of 11 paise from its…
Gold (XAU/USD) rallies to an over two-week high, around the $4,140-$4,141 area, during the Asian session on Wednesday amid hopes that US-Iran diplomacy could ease energy prices and temper hawkish US Federal Reserve (Fed) expectations. In fact, top negotiators for Iran and the US signaled that they have not walked away from talks. US Secretary of State Marco Rubio said on Sunday that the US was still open to holding talks with Iran, while Iran’s Interior Minister Eskandar Momeni visited mediator Pakistan and asked Islamabad to continue its efforts. Moreover, reports suggest that mediators are working to bring the US…
Iran’s top joint military command said that Tehran will expand its strikes and target the US and its allies’ interests across the region if the US attacks Iran’s nuclear sites, Xinhua news agency reported on Tuesday.Iranian State TV reported that if the US attacks Iran’s nuclear sites, it will be an expansion of war in the region.The statement came after US President Donald Trump said that the US will be hitting the Pickaxe Mountain area “pretty soon.” Trump on Tuesday vowed to respond if Houthi militants in Yemen disrupted that waterway but didn’t specify how.On Tuesday, a handful of oil…
USD/CHF edges higher as escalating tensions in the Middle East support the US Dollar (USD), with buyers eyeing a breakout above the 0.8150 resistance level that has capped gains since July 2025. At the time of writing, the pair trades around 0.8123, up 0.27% on the day.From a technical perspective, USD/CHF has largely traded sideways after breaking above 0.8000 in June. A successful retest of that level drew buyers back into the market. Holding above 0.8000 keeps the near-term bias tilted to the upside, although buyers may need a fresh catalyst to clear 0.8150.On the daily chart, the pair trades…
Tatha Ghose at Commerzbank highlights that Turkey’s market-based inflation expectations for 2026 and 12 months ahead have risen again, undermining confidence in disinflation. Survey participants see Central Bank of the Republic of Türkiye (CBRT) holding rates at 37% this week then cutting to 34.7% by year-end, a mix he deems negative for the Lira given underlying monthly inflation near 2% and a higher end-2026 USD/TRY forecast.CBRT stance seen as lira-negative”Turkey’s central bank (CBRT) published its latest survey of market participants yesterday, and the message was not encouraging. The year-end 2026 CPI forecast edged up to 29.2%y/y in July from 29.1%y/y…
The Indian rupee firmed slightly on Tuesday as hopes of diplomacy between the U.S. and Iran pulled the brakes on an oil rally that had driven the currency to a two-month low.Traders are also paying close attention to the scale of inflows that India’s capital flow measures would attract over a period to bolster India’s FX kitty that is used to defend the rupee.On Tuesday, the Indian currency rose 0.2% to 96.2350 against the U.S. dollar.Oil prices declined by over 1% before turning higher again as markets weighed reports of mediation efforts between the U.S. and Iran against an exchange…
The Indian rupee firmed slightly on Tuesday as hopes of diplomacy between the US and Iran pulled the brakes on an oil rally that had driven the currency to a two-month low.Traders are also paying close attention to the scale of inflows that India’s capital flow measures would attract over a period to bolster India’s FX kitty that is used to defend the rupee.On Tuesday, the Indian currency rose 0.2% to 96.2350 against the US dollar.Oil prices declined by over 1% before turning higher again as markets weighed reports of mediation efforts between the US and Iran against an exchange…
MUFG’s Michael Wan notes that disruptions in the Strait of Hormuz have shifted more Middle East Oil flows toward the Red Sea and Bab el-Mandeb, increasing vulnerability to regional conflict. While Houthi threats and potential rerouting via Suez and Cape of Good Hope could lift transport costs, MUFG still expects Oil prices to stay below earlier conflict highs if a resolution eventually emerges.Red Sea vulnerabilities and price risks”In particular, the Houthis said they will impose a maritime blockade on Saudi Arabia in response to what they say is Saudi Arabia’s siege of the Yemeni capital. This led to the Saudi…
Rupee weighed down by spike in crude oil prices and safe haven demand for the dollar | Photo Credit: Yohaan Ashish Varghese _12194 The rupee depreciated 6 paise to 96.42 against the US dollar in early trade on Tuesday as heightened geopolitical uncertainty put pressure on most Asian currencies, including the rupee.Forex traders said the rupee came under pressure from a combination of factors — crude oil prices climbed on renewed geopolitical tensions, and demand for the US dollar increased as investors moved toward safe-haven assets.At the interbank foreign exchange market, the rupee opened at 96.41 then touched 96.42, registering…
Gold (XAU/USD) regains positive traction following the previous day’s two-way price moves, though it struggles to capitalize on the move and trades below the $4,050 level during the Asian session on Tuesday. Despite a cycle of tit-for-tat strikes between the US and Iran, US Secretary of State Marco Rubio said on Sunday that the US was still open to holding talks with Iran, keeping hopes alive for a potential diplomatic resolution to the conflict. This holds back the US Dollar (USD) bulls from placing fresh bets, which, in turn, is seen as a key factor supporting the commodity.Investors, however, remain…