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Companies in the US and UK ramped up currency hedges last quarter as the war in Iran roiled global markets, an industry survey shows.Corporate treasurers on average protected 57% of their foreign-exchange exposure using financial instruments in the first three months of the year, up from 49% in the fourth quarter, according to currency hedging and cash-management platform MillTech. It was the highest level since the firm began querying corporations in the first quarter of 2024. BloombergInternational events, including the US capture of Venezuelan President Nicolas Maduro in January and the surge in energy prices as a result of the…
The US military carried out new strikes in Iran targeting a military site that posed a threat to US forces and commercial traffic in the Strait of Hormuz, Reuters reported on Wednesday.The official said that the US military has also intercepted and shot down multiple Iranian drones that posed a similar threat. Separately,l Fars News Agency reported that three explosions were heard east of Bandar Abbas and air defences were activated for several minutesMarket reaction Crude oil prices attract some buyers following this headline. At the time of writing, the West Texas Intermediate (WTI) is up 0.95% on the day at…
Economists said the interventions were aimed at stabilising the rupee, which depreciated about 9.5 per cent against the dollar during the fiscal year. | Photo Credit: iStockphoto The Reserve Bank of India recorded its largest net sale of foreign currency in at least 15 years, and its outstanding position in the forward market hit a decadal high in FY26. These measures were a response to the rupee’s weakness, driven by US tariff-related uncertainty and capital outflows. The rupee lost approximately 9.5 per cent against the dollar in FY26.Spot market intervention swells to historic highsRBI’s net purchase or sale of dollars…
TD Securities’ James Rossiter argues that recent UK GDP data may overstate underlying momentum due to problematic seasonal adjustment by the ONS. Using a double-seasonal adjustment approach inspired by the San Francisco Fed, he finds Q1 and Q2 growth inflated and H2 understated, implying 2026 Q1 GDP could be around 0.25ppt lower and later quarters stronger than reported.Questioning strength in UK growth data”UK GDP growth out-paced the rest of the G10 in 2025H1, and is again top of the charts for 2026Q1 data released so far.””But speculation has risen that there is a growing issue with the ONS’ seasonal factors…
Brown Brothers Harriman’s (BBH) Elias Haddad notes AUD/USD slid toward 0.7136 and is expected to settle closer to 0.7000, consistent with Australia–US 2‑year yield spreads. Mixed April Consumer Price Index (CPI), with softer headline but firm trimmed mean, saw Reserve Bank of Australia (RBA) hike pricing pared back and leaves risks skewed toward a longer pause in the tightening cycle.Yield spreads point to lower Aussie”AUD/USD dropped to intra-day lows near 0.7136. We expect AUD/USD to stabilize lower around 0.7000, the level implied by Australia-US 2-year bond yield spreads.””Australia April inflation was mixed. Headline CPI dipped more than expected to 4.2%…
The rupee settled on a flat note, higher by 2 paise at 95.68 (provisional) against the US dollar on Wednesday, as renewed tensions between the US and Iran and delays in negotiations kept investors cautious.Forex traders said a strong American currency and weak domestic markets also pressured the rupee. Attention has shifted toward the upcoming RBI Monetary Policy Committee meeting scheduled between June 3 and 5, they said.At the interbank foreign exchange market, the rupee opened at 95.60 against the US dollar, and touched an intra-day low of 95.79 against the American currency.At the end of Wednesday’s close, the rupee…
The Indian rupee had a muted Wednesday, with traders keeping an eye on gyrations in oil prices alongside signs of the central bank’s presence in the spot and forward market to support the beleaguered currency. The rupee closed at 95.69 per dollar, barely changed from its close at 95.68 in the previous session. While the currency threatened to fall past 95.80 earlier in the session, dollar sales from state-run banks averted the move, four traders said. Concurrently, state-run banks were spotted conducting dollar-rupee buy/sell swaps, which cooled forward premiums, they added. India’s central bank has likely been rolling over maturities…
The Indian rupee dipped on Wednesday and appeared prone to steeper losses on elevated oil prices, with dollar sales from state-run banks capping some decline, a familiar pattern over recent trading sessions as the South Asian unit remains under pressure.Ebbing hopes of an imminent resolution to the U.S.-Israeli war on Iran have lifted oil prices to the vicinity of $100 per barrel, keeping alive investor worries over the risks confronting energy importers like India.On the day, the rupee was down 0.1 per cent at 95.7675 per dollar, with trading in Asia thinned out by a clutch of regional holidays.The dollar…
The Euro (EUR) extends its rally against the Japanese Yen (JPY) for the fourth consecutive day on Wednesday, reaching above 185.46 for the first time since an alleged intervention on April 30. The JPY has failed to draw support from Bank of Japan Governor (BoJ) Ueda’s hawkish comments and is dropping against its main peers, raising concerns of another intervention. Ueda warned about second-round effects from inflation on Wednesday and stated that central banks should not look at Oil prices in isolation, because a temporary energy shock “may turn lasting if it alters wages, expectations and price-setting behaviour.”These comments feed expectations…
Reserve Bank of New Zealand’s (RBNZ) Governor Anna Breman presents the prepared remarks on the Monetary Policy Review (MPR) and responds to media questions at the press conference after the May monetary policy announcement.Earlier on, Breman and her colleagues announced no change to the Official Cash Rate (OCR) decision, holding it at 2.25% as widely anticipated.RBNZ press conference key quotesAll members agreed on path for rates, difference was on timing.Members who voted to raise rates more concerned with second-round effects on inflation.Members who voted to hold emphasized low core inflation, subdued wage growth, anchored expectations.Longer term inflation expectations remain anchored.Inflation…