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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…
Federal Reserve (Fed) Chair Kevin Warsh said on Wednesday that current inflation pressure will not be permanent, while acknowledging that the latest inflation measures remain unsatisfactory. Warsh made the remarks while testifying at the Semiannual Monetary Policy Report before the US Senate Committee on Banking, Housing and Urban Affairs.Key takeaways:Inflation will not be permanent.Monetary policy has contributed to inflation.The labor market remains in good shape.It is unclear whether previous interest rate cuts were responsible for the labor market’s resilience.Warsh is not satisfied with any of the current inflation measures.The Federal Reserve is expected to receive taskforce briefings in early September.The…
Commerzbank’s Volkmar Baur notes that softer US inflation has reduced expectations for Federal Reserve rate hikes and pressured the US Dollar. June headline and core inflation fell more than consensus, leading markets to price out roughly half a hike by year-end. Baur argues that improving productivity and AI-related investment support a wait-and-see Fed stance, keeping the Dollar under pressure, though higher Oil prices may slow adjustment.Lower inflation shifts Fed pricing”The lower inflation figures also had an impact on the fx market. On a trade-weighted basis, the US dollar lost about 0.3% yesterday, and it also gave up a similar amount…
Positive sentiment in the domestic equity markets and a weaker greenback cap a sharper decline in the rupee | Photo Credit: SANJAY SHARMA The rupee fell 16 paise to close at 96.32 (provisional) against the US dollar on Wednesday, weighed down by heightened tensions in West Asia and a rise in global crude oil prices.However, positive sentiments in the domestic equity markets and a weaker greenback prevented a sharper decline in the local unit, forex traders said.At the interbank foreign exchange market, the rupee opened at 96.12 and traded in the range of 96.04-96.32 during the session. It settled at…
ING’s Francesco Pesole expects the Bank of Canada to keep rates at 2.25%, with limited incentive to push back against modest December tightening pricing. He sees June CPI potentially falling below 3.0% as petrol prices drop, while core remains near 2.0%. Source
The rupee rose 5 paise to 96.11 against the US in early trade on Wednesday amid heightened tensions in West Asia and a weaker greenback.Higher crude oil prices and FII outflows prevented a sharper rise in the local unit while a positive opening in the domestic equity markets lent support, forex traders said.At the interbank foreign exchange market, the rupee opened at 96.12 and inched up to 96.11, up 5 paise from its previous close.The unit depreciated 48 paise to close at 96.16 against the US dollar on Tuesday.Iran on Wednesday threatened to halt all energy exports from West Asia…
Gold (XAU/USD) attracts some sellers after failing to find acceptance above the $4,100 mark the previous day, though it holds above the $4,000 psychological mark during the Asian session on Wednesday. Despite soft US Consumer Price Index (CPI) data, investors remain worried about energy-driven inflation as escalating US-Iran tensions and the closure of the Strait of Hormuz remain supportive of elevated crude oil prices. Furthermore, US Federal Reserve (Fed) Chair Kevin Warsh reiterated the price stability commitment in his first congressional testimony, leaving the door open for at least one rate hike by year’s end. This, to a large extent,…
The dollar extended its weakness on Wednesday after tumbling from a two-week high, as softer-than-expected inflation data curbed bets on a near-term Federal Reserve rate hike, despite concerns that elevated oil prices could fuel inflation risks. Against the yen, the dollar fetched 162.08, down 0.1%. The euro and the British pound each gained 0.1%, trading at $1.1433 and $1.3401, respectively. The New Zealand dollar was also well bid at $0.5819, hovering around its strongest level in a month, and the Australian dollar was steady at $0.6983. The U.S. dollar index, which measures the currency against a basket of six peers,…
Mumbai: The Indian rupee slumped to an eight-week low as risk rebounded to the top of the pile of obstacles for bullishness amid continued hostilities between Washington and Tehran.The currency traded at an intraday low of 96.23, and closed at 96.20 per dollar, its weakest closing level since May 21. It closed Monday at 95.62.High crude oil prices, safe-haven dollar demand and a resumption of local asset sales by overseas investors Indian assets pressured the currency, while intervention from the Reserve Bank of India (RBI) helped contain further losses, traders said.The rupee had traded at a record low of 96.96…
US President Donald Trump said that Iran retains some resilience but is largely depleted. He emphasized that he will preserve energy objectives in Iran until the end, Fox News reported on Tuesday.Trump further stated that the US conducted discussions with Iran on Tuesday, adding that Washington urged Tehran to reach an agreement. The US President said in an interview on Fox News that strikes will continue until he says it’s enough. They [Iran] have some fight left but they don’t have much,” said Trump.Meanwhile, Iran’s Mehr news agency reported that the Hormozgan governorate confirmed a projectile strike near Hajiabad in southern Iran. The…