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The Indian rupee weakened to an all-time low on Wednesday, extending its losing streak, as overseas debt repayments and importer-hedging demand outweighed limited support from New Delhi raising taxes on gold and silver shipments.The rupee weakened to 95.7950 per dollar, edging past its previous low of 95.7375 hit just a day earlier.The energy shock from the prolonged U.S.-Iran war that has effectively shut the Strait of Hormuz has hurt India’s macroeconomic outlook and strained its current account balance. Economists have lowered their growth forecasts, raised inflation projections and warned of sustained pressure on the rupee.The currency, which ended down 0.1%…
Gold (XAU/USD) sticks to modest intraday losses through the early European session on Wednesday, albeit it lacks bearish conviction and remains confined within the previous day’s broader trading range. Hotter-than-expected US consumer inflation figures released on Tuesday reaffirmed market expectations for a more hawkish US Federal Reserve (Fed). This, along with geopolitical uncertainties, helps the US Dollar (USD) to preserve Tuesday’s gains to its highest level in over one week and keeps the precious metal depressed for the second straight day.The US Bureau of Labor Statistics (BLS) reported on Tuesday that the headline US Consumer Price Index (CPI) rose from…
The rupee rebounded by 16 paise from its all-time low to 95.52 against the American currency in early trade on Wednesday amid hopes of lower demand for the US dollar due to import curbs.Forex traders said market participants are expecting some resilience in the dollar-rupee pair as gold importers curb their demand.The Indian government raised import tariffs on Gold and Silver to 15 per cent from 6 per cent to curb overseas purchases of the metals and ease pressure on the Country’s FX reserves.However, elevated crude oil prices and the strength of the American currency in the overseas market weighed…
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining steady after two days of gains and trading around 98.30 during the Asian hours on Wednesday.The Greenback gains ground on the volatile geopolitical climate in the Middle East following recent comments from US President Donald Trump. While claiming that Iran is “under control,” the President warned of a binary outcome: a new deal or total “decimation.” In response, Iranian Deputy Foreign Minister Kazem Gharibabadi maintained a firm stance, asserting that any viable peace agreement must include reparations, recognized sovereignty over…
US President Donald Trump said that “we have Iran very much under control.” But also reiterated that “we’re either going to make a deal, or they’re going to be decimated,” the New York Times reported on Tuesday.Meanwhile, Iran’s deputy foreign minister Kazem Gharibabadi stated that Iran’s position was that any peace deal must include reparations for Iran, Iranian sovereignty over the Strait of Hormuz and an end to US sanctions.Market reactionAt the time of writing, the West Texas Intermediate (WTI) is down 0.31% on the day at $98.35. WTI Oil FAQs WTI Oil is a type of Crude Oil sold…
Overnight and premarketDow Jones Industrial Average (DJIA) futures spent the overnight session in a tight range between 49,600 and 49,700, with little appetite to pick a side ahead of the April Consumer Price Index (CPI). That calm broke at 12:30 GMT, when the report landed hotter than expected and sent futures roughly 400 points lower inside a single 15-minute candle. The contract has since clawed back about half the move, trading back above 49,500, but the rate cut narrative that drove the first quarter just took another body blow.Sticky inflation, stickier coreHeadline CPI rose 0.6% MoM in April, matching consensus,…
The central bank is believed to have intervened, leading to a pull back in the Rupee. | Photo Credit: FRANCIS MASCARENHAS The Rupee sank to a record low as the US and Iran hardened their stand on ending the West Asia war, sending crude oil prices higher and accentuating FPI sales in the domestic stock markets.The Indian currency closed 32 paise down at an all time low of 95.6275 per US Dollar. Intraday, it fell to a record low 95.7375 per dollar, surpassing the previous low of 95.4325.The central bank is believed to have intervened, leading to a pull back…
Annual inflation in the United States (US), as measured by the change in the Consumer Price Index (CPI), climbed to 3.8% in April, the US Bureau of Labor Statistics (BLS) reported on Tuesday. Developing story, please refresh the page for updates.This section below was published as a preview of the US Consumer Price Index (CPI) data at 04:00 GMT.The US Consumer Price Index is expected to rise 3.7% YoY in April as energy prices remain persistently high.Annual core CPI inflation is expected to edge slightly higher to 2.7%.EUR/USD’s technical outlook highlights a bullish stance that lacks momentum. The US Bureau of…
NZD/USD extends its losses for the second successive day, trading around 0.5940 during the early European hours on Tuesday. The pair depreciates as the US Dollar (USD) strengthens on the back of renewed United States (US)-Iran tensions.Global investors are pivoting toward safe-haven assets following reports of deteriorating diplomatic relations in the Middle East. The shift in sentiment comes as market participants weigh the possibility of a return to major combat operations, a move that typically triggers a flight to quality and bolsters the Greenback against more sensitive currency valuations.According to a CNN report released Monday, US President Donald Trump has…
The rupee hit an all-time low on Tuesday, weighed by expectations of prolonged high crude prices, persistent portfolio outflows and weakening sentiment.The rupee opened at 95.50 versus the U.S. dollar, slipping past its previous record low of 95.4325 hit last week.The currency extended its fall to 95.6250, taking losses since the Iran war broke out to 5.2%. The central bank stepped in to smooth the rupee’s fall.The rupee and other currencies of oil-importing countries have been among the hardest hit following a 46% surge in Brent crude prices triggered by the Iran war. Alongside the rupee, the Philippine peso and…