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US Interior Secretary Doug Burgum said that the US President Donald Trump administration is weighing a range of options for addressing the spike in oil and gasoline prices amid the war in Iran, Bloomberg reported on Friday.Trump huddled with Burgum and other top advisers to consider a range of possibilities Tuesday before announcing plans to provide insurance guarantees and naval escorts to ensure safe passage for oil tankers and other vessels through the Strait of Hormuz.Other options include releasing crude from the country’s emergency oil reserve, potentially in coordination with other nations to maximize effect. However, administration representatives have not…
Nordea’s Chief Analyst Jan von Gerich expects the ECB to stay on hold for now while closely monitoring how the Middle East conflict affects Euro-area growth and inflation. He argues that higher and prolonged energy prices, tight labour markets and sticky services inflation raise upside risks to ECB rates. Nordea still forecasts the first rate hike in the second half of next year, but sees rising risk of an earlier move.ECB vigilance as energy risks build”The ECB will remain on hold for now, but it will carefully assess, what consequences the conflict in the Middle East will have on the…
Rupee made a smart recovery on Thursday after tanking to close at a record low the previous day on heavy RBI intervention in the forex market.Rupee closed 55 paise stronger at 91.60 per US Dollar against previous close 92.15. The Indian currency had closed at an all-time low on Wednesday amid concerns over the negative impact that the spike in global crude oil prices could have on India’s current account balance.Despite the Rupee strengthening against the Dollar, it continues to be remain under pressure due to ripple impact from the West Asia war. If the war lingers, oil prices could…
The Indian rupee logged its biggest one-day gain in a month on Thursday after the Reserve Bank of India stepped in aggressively to shore up the currency, with bankers expecting the central bank to stay on guard as geopolitical risks persist.The rupee touched a peak of 91.4125 in before ending the day at 91.60 per dollar, up 0.6% on the day.India’s benchmark indexes rose 1% and most Asian stocks were also higher while currencies traded mixed.Traders pointed to aggressive dollar sales by state-run banks, which lifted the rupee after it fell to a record low of 92.3025 on Wednesday.Choppy moves…
Commerzbank’s Michael Pfister revisits international trade theory to explain why higher Oil prices and the US status as a net Oil exporter are supportive for the Dollar against the Euro. He argues that improved US terms of trade, slower price adjustment and central bank inflation targets mean the nominal EUR/USD exchange rate bears most of the adjustment, with scope for a rebound if Oil prices fall.Oil shock and Dollar trade advantage”It is likely that there will be agreement on the fact that the US is now a net oil exporter, while the euro area has to import oil on a…
The Indian rupee breached the 92/$1 mark for the first time on Wednesday to a record low, mirroring the steepest weekly climb in the fear gauge for equity assets since the initial Covid shutdowns six years ago, as the West Asian war disrupted supplies of oil and industrial gases and compelled investors to buy safe-haven dollar assets.The rupee fell 68 paise from Monday’s closing level of 91.47 to a dollar – at 92.15 – and its losses would have been even steeper in the absence of evident, late-afternoon interventions from the central bank, traders said. “Selling of dollars by the…
Rupee recovered from its lowest level and gained 48 paise to trade at 91.57 against the US dollar in early trade on Thursday, tracking positive momentum in domestic equity markets. However, higher crude oil prices, a strengthening American currency and intense selling of Indian equities by foreign investors amid escalating tension in the Middle East kept the local unit under pressure, forex analysts said. At the interbank foreign exchange market, the rupee opened at 92.16 and touched a high of 91.30 before trading at 91.57 against the American currency, registering a gain of 48 paise from its previous closing level.The…
The Reserve Bank of Indian likely stepped into the foreign exchange market aggressively on Thursday, three traders told Reuters, likely aimed at shoring up the rupee, which fell to a record low in the previous session.The rupee was on track to open around the 92.10 per dollar level on Thursday, but minutes before the local spot market opened at 9:00 a.m. IST, it rallied sharply on the interbank order matching system to about 91.40 per dollar. Traders cited dollar sales from at least three state-run banks, most likely on behalf of the RBI. Source
Gold price (XAU/USD) extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East. The Iran conflict has entered its sixth day with US and Israeli strikes across Iranian territory and widespread Iranian missile and drone retaliation across the Middle East, including attacks on regional targets and military sites, prolonging the crisis and its impact.A US submarine reportedly sank an Iranian warship off the coast of Sri Lanka, escalating hostilities. US Defense Secretary Pete Hegseth called it the “first such attack on an enemy since World War II.” The…
GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average (EMA), with this week’s one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.Chancellor Rachel Reeves delivered her Spring Statement earlier this week, with the Office for Budget Responsibility (OBR) cutting its 2026 growth forecast to 1.1% from 1.4%, citing weaker-than-expected activity in late 2025 and rising unemployment. The OBR acknowledged…