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Mumbai: The country’s largest lender by assets, State Bank of India (SBI), mobilised about $1.9 billion in foreign-currency resources under the central bank’s special incentive scheme, people familiar with the matter told ET. SBI’s haul is the highest among state-owned lenders – and dwarfs those by its biggest private-sector rivals, too.Bank of Baroda (BoB) ranked a distant second, having raised $273 million so far, while Canara Bank and Punjab National Bank (PNB) mobilised $80 million each, said the sources cited above. The figures, representing foreign-currency resources mobilised until last Friday, were shared with the finance ministry at a meeting earlier…
The Pound Sterling trims some of its Wednesday gains versus the US Dollar, down by over 0.48% following solid US data. The sell-off comes amid risk aversion and augments the safe-haven appeal of the Greenback. At the time of writing, the GBP/USD trades at 1.3375, after peaking near 1.3545.GBP/USD slips as strong claims data and geopolitics lift DollarUS Retail Sales in June increased 0.2% MoM, as expected. Gasoline prices eased from $4.61 in May to $4.18 in the last month, leaving consumers with free money for discretionary spending. Excluding gasoline and autos, Retail Sales expanded 0.4% MoM, down from 0.5%Other…
BNY’s Geoff Yu says iFlow Carry is beginning to resemble its 2023 upswing. Neutral positioning in carry currencies, including those funded in the dollar, leaves room for exposures to rebuild. G10 FX attracted broad inflows, while EM FX selling was led by HUF, ZAR and KRW.Carry rebuild and G10 inflows”iFlow Carry resembles the heyday of 2023. In June, we highlighted that iFlow Carry had moved into statistically significant negative territory, which could signal improved risk appetite ahead. That analysis was based purely on flows, and we continue to take the view that a period of positive significance, where flows align…
Rupee ended modestly weaker on Thursday, unable to benefit from a dip in oil prices and broad strength in regional currencies in the face of dollar demand linked to maturing non-deliverable forward contracts.The rupee closed at 96.3450 per dollar, down 0.1% from its previous close and hovering close to its weakest level in nearly two months.The currency has fallen back to levels seen before policymakers announced a host of measures to shore up dollar inflows, ranging from incentives for overseas dollar deposits to removal of taxes on foreign investments in government debt.Traders have pointed to elevated dollar demand from merchants…
The Indian rupee ended modestly weaker on Thursday, unable to benefit from a dip in oil prices and broad strength in regional currencies in the face of dollar demand linked to maturing non-deliverable forward contracts.The rupee closed at 96.3450 per dollar, down 0.1% from its previous close and hovering close to its weakest level in nearly two months.The currency has fallen back to levels seen before policymakers announced a host of measures to shore up dollar inflows, ranging from incentives for overseas dollar deposits to removal of taxes on foreign investments in government debt.Traders have pointed to elevated dollar demand…
Commerzbank’s Michael Pfister argues that recent Canadian labour data and the Bank of Canada’s latest decision suggest domestic monetary policy is unlikely to reverse the downtrend in USD/CAD. Markets have largely priced out further rate hikes, and he expects any sustained move to lower USD/CAD levels in coming weeks to hinge mainly on continued US Dollar weakness.BoC stance and cross rate drivers”The latest labour market figures have made it clear that a reversal of the trend towards lower USD/CAD levels is unlikely to originate from Canada.””Whilst interest rates were expected to remain unchanged, policymakers gave no indication of any imminent…
One hundred dollar US currency paper note over a stack heap of 500 Rupees Indian currency flat lay over gray white background for foreign exchange, forex posters with blank copy space. | Photo Credit: desifoto The rupee declined 6 paise to 96.31 against the US dollar in early trade on Thursday amid volatility in global crude oil prices and a stronger greenback with the West Asia crisis showing no signs of abating.FII outflows continued to weigh on the local unit while a positive start to the day at the domestic equity markets provided support, according to forex traders.At the interbank…
Gold (XAU/USD) attracts fresh sellers during the Asian session on Thursday and drops back closer to the previous day’s swing low, around the $4,025 region in the last hour. Despite soft US Consumer Price Index (CPI) and Producer Price Index (PPI) reports, elevated crude oil prices keep the possibility of a US Federal Reserve (Fed) interest rate hike later this year firmly on the table. This offers some support to the US Dollar (USD) and drives flows away from the non-yielding bullion.The US Bureau of Labor Statistics (BLS) reported on Wednesday that the PPI unexpectedly fell 0.3% in June after…
The U.S. dollar hovered near a one-month low on Thursday, as soft inflation data reinforced bets that the Federal Reserve can stay patient on interest rate hikes, while escalation in Middle East hostilities added upside risk to the inflation outlook. The greenback slipped against the Japanese yen for the third trading session, by 0.1% to 162.075 yen. The euro was 0.1% higher at $1.1472, its strongest in a month. Sterling held near a two-month high at $1.354 on market expectations that Britain’s incoming prime minister will pick a fiscally conservative finance minister.The Australian and New Zealand dollars were both down…
United Overseas Bank’s Quek Ser Leang and Lee Sue Ann highlight a sharp USD/CNH drop to 6.7691, shifting the short-term bias to the downside. They see scope for further weakness, though the 6.7600 support is unlikely to be reached immediately. Over 1-3 weeks, the pair is expected to trade with a downside bias toward 6.7600, while a move above 6.7860 would negate the bearish momentum.Offshore Yuan strengthens as Dollar slips”24-HOUR VIEW: We did not expect USD to drop sharply to 6.7691 (we had expected range-trading). The rapid increase in momentum suggests further USD weakness, even though the major support at…