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The rupee gained 7 paise to settle at 90.87 (provisional) against the US dollar on Monday, aided by a sharp fall in global crude oil prices and a weaker greenback amid renewed global trade-related uncertainties. However, foreign fund outflows, coupled with geopolitical concerns, capped gains for the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 90.76 and traded in the range of 90.67-90.89 against the greenback during the session. It eventually settled at 90.87 (provisional), up 7 paise from its previous close. The rupee plunged 26 paise to settle at 90.94 against the US…
BNY’s Head of Markets Macro Strategy Bob Savage expects rate cuts from Bank of Israel and Hungarian National Bank as inflation softens and exchange rates remain elevated. The report notes that both ILS and HUF have been strong sources of tightening, with markets focused on whether easing cycles will be precautionary or more prolonged, given ample room to cut from high starting policy rates.Israel and Hungary set for easing cycles”In EMEA, Bank of Israel (BoI) and Hungarian National Bank (MNB) decisions this week are likely to yield cuts as central banks react to materially softer inflation and elevated exchange rate…
Highlights RBI’s forward book maturities may pressure rupee, bankers say NDF contracts worth at least $7 billion set to mature this week Durable inflows could reduce RBI’s forward positions, alleviate rollover pressure, bankers add Reserve Bank of India’s (RBI) reliance on using the non-deliverable forward market to manage rupee volatility is expected to weigh on the currency, with contracts worth at least $7 billion due to mature this week and more due in the coming weeks, four bankers said.Selling dollar/rupee forwards in the NDF market lets the Reserve Bank of India support the rupee without an immediate drain on foreign…
The rupee surged by 21 paise to 90.73 against the US dollar in early trade on Monday, aided by a sharp fall in global crude oil prices and a weaker greenback amid renewed uncertainties over US President Donald Trump hiking tariffs to 15 per cent. Brent crude, the global oil benchmark, was down 1.09 per cent at USD 70.98 per barrel. A strong opening in domestic equity markets, along with a jump in forex reserves, provided further support to the local unit, according to forex traders.At the interbank foreign exchange, the rupee opened at 90.76 against the US dollar and…
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, extends its losses for the second successive session, trading around 97.50 during the Asian hours on Monday.The dollar index weakened against major currencies as persistent uncertainty around the United States (US) trade policy and disappointing economic data weighed on investor sentiment. Recent legal and policy developments have compounded confusion over the outlook for tariffs and growth.Global markets remain on edge after the US Supreme Court struck down most of President Donald Trump’s emergency tariff authority, limiting the use of emergency powers to…
US President Donald Trump is considering limited airstrikes on Iran, the New York Times reported on Sunday. Trump said that if diplomacy or any initial targeted US attack does not lead Iran to give in to his demands that it give up its nuclear program, he will consider a much bigger attack in coming months.The next round of talks between the US and Iran will be on Thursday in Geneva. However, Trump weighs options for US action if the negotiations fail.Market reactionAt the time of press, the US Dollar Index (DXY) was down 0.36% on the day at 97.40. Risk sentiment FAQs In…
For months, the U.S. dollar has looked tired. The U.S. Dollar Index has remained below the psychological 100 mark since November, slipping nearly 6.5% since what markets dubbed “Liberation Day”. The dollar, once the unquestioned king of currencies, suddenly found itself defending ground rather than gaining it.For a currency that typically strengthens during global uncertainty, this weakness felt unusual. But storms do not last forever. And now, the very concerns that dragged the dollar lower may slowly be turning into reasons for a rebound.Why the Dollar Was StrugglingThe dollar’s weakness was not random; it was built on a series of…
The dollar declined in volatile trading on Friday and was poised to snap a four-session streak of gains after the U.S. Supreme Court struck down President Donald Trump’s sweeping tariffs based on a national emergency law. The justices, in a 6-3 ruling authored by conservative Chief Justice John Roberts, upheld a lower court’s decision that the Republican president’s use of this 1977 law exceeded his authority. The dollar was initially higher on the day after U.S. economic data showed a higher-than-anticipated inflation reading while economic growth fell well short of expectations. The Commerce Department said gross domestic product increased at…
DBS Group Research economist Chua Han Teng expects the People’s Bank of China to keep the 1-year Loan Prime Rate at 3.00% on February 24, as January data are still unfolding. The report says policy remains cautiously accommodative, reflected in a lower USD/CNY fixing below 7.0, with reliance on structural tools and broader easing anticipated toward the second half of 2026.Loan Prime Rate seen unchanged for now”The PBOC is expected to keep the 1-year Loan Prime Rate (LPR) unchanged at 3.00%, as January economic data have yet to fully unfold.””The central bank is maintaining a cautiously accommodative monetary policy stance…
MUFG analysts Lin Li, Michael Wan, Lloyd Chan and Khang Sek Lee highlight an Asia‑centric week dominated by geopolitics, inflation and monetary policy. They expect the Bank of Korea to keep rates on hold through 2026, the Bank of Thailand to cut by 25bps, and China’s loan prime rates to stay unchanged pending clearer policy guidance in March.Asia policy signals drive FX outlook”The coming week is heavily Asia‑centric, with geopolitics, inflation dynamics and monetary policy in focus across the region.””In particular, we expect the Bank of Korea to keep rates on hold with the tone likely to indicate an extended…