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The Indian rupee is expected to maintain a level of 89 to 90 against the US dollar by the end of fiscal year 2027, supported by a softer dollar and a manageable current account deficit (CAD), according to a report by CareEdge Ratings.The report highlighted that the USD/INR strengthened from recent lows of around 92 to approximately 90.6 following the trade deal with the United States and the Free Trade Agreement (FTA) with the European Union. This recovery reflects improving sentiment and easing pressure on the domestic currency.It stated, “We maintain our FY27-end USD/INR forecast at 89-90.” However, despite the…

Reserve Bank of New Zealand’s (RBNZ) new Governor Anna Breman said on Thursday that if the outlook for inflation changes, committee will adjust policy stance to ensure inflation returns to target.Key quotesIf the outlook for inflation changes, committee will adjust policy stance to ensure inflation returns to target.Wage growth is modest, we do have spare capacity.There are uncertainties about how firms adjust pricing behaviour as the economy recovers.Seeing consumption starting to increase, stabilizing job market and falling inflation provide support.Household consumption starting to increase but relatively weak growth compared to historical patterns.If we see pricing behaviours change, recovery much stronger and…

The Minutes of the United States (US) Federal Reserve’s (Fed) January 27-28 monetary policy meeting will be published on Wednesday at 19:00 GMT. The US central bank decided to leave the policy rate unchanged at the range of 3.50%-3.75%, but Fed Governors Stephen Miran and Christopher Waller voted to lower the fed funds rate by 25 bps.Jerome Powell and company opted to pause rate cuts in JanuaryThe Federal Open Market Committee (FOMC) held the interest rate unchanged in January after opting for three consecutive 25 basis points (bps) rate cuts. In the policy statement, the Fed noted that the unemployment…

The AUD/USD pair trades in a tight range around 0.7075 during the European trading session on Wednesday. The Aussie pair consolidates as investors await the release of Federal Open Market Committee (FOMC) minutes at 19:00 GMT and the Australian employment data for January on Thursday.Ahead of the FOMC minutes release, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is up 0.2% to near 97.30.Investors will pay close attention to the Federal Reserve’s (Fed) January meeting minutes to get fresh cues on the monetary policy outlook.Meanwhile, the Australian employment data is expected to show that…

The rupee rose 5 paise to close at 90.67 (provisional) against the US dollar on Wednesday driven by inflow of foreign funds and positive domestic equity markets. However, higher global crude oil prices and a strengthening greenback capped sharp gains in the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 90.60 against the US dollar and traded in a narrow range of 90.60-90.71 before settling at 90.67 (provisional), higher by 5 paise against its previous close. The rupee gained 2 paise to settle at 90.72 against the US dollar on Tuesday. “The rupee remained…

The Pound (GBP) has been little moved following a string of UK inflation figures for January and remains trading right above 208.00 against the Japanese Yen (JPY), with the two-month lows of 207.22 at a short distance.UK Consumer Price Index (CPI) released earlier on Wednesday has shown a significant decline in inflation, providing some leeway for the Bank of England (BoE), to ease its monetary policy further. Headline inflation contracted 0.5% in January, reversing a 0.4% advance in December, while yearly inflation eased to 3.0% from 3.4% in the previous month, figures in line with the market consensus.UK retail prices…

The rupee rose 5 paise to 90.67 against the US dollar on Wednesday on the back of a drop in global crude oil prices and FII inflows. However, a stronger greenback and a weak start to day at the domestic equity markets capped sharp gains in the local unit, forex traders said. At the interbank foreign exchange, rupee opened at 90.60 but lost some ground to trade at 90.67 against the US dollar, higher by 5 paise from its previous close. The rupee gained 2 paise to settle at 90.72 against the US dollar on Tuesday. “The RBI sold dollars…

The NZD/USD pair is down 0.7% to near 0.6000 during the Asian trading session on Wednesday, following the monetary policy announcement by the Reserve Bank of New Zealand (RBNZ).The New Zealand Dollar (NZD) has come under severe pressure as RBNZ Governor Anna Breman pushes back hopes of interest rate hikes in the near term in her remarks at the debut press conference after leaving the Official Cash Rate (OCR) unchanged at 2.25%, as expected.“Not planning to hike until we see a stronger economy, more inflationary pressure,” Breman said, and added, “There is possibility of rate hike by end of year.” Her…

Brown Brothers Harriman’s (BBH) Global Head of Markets Strategy Elias Haddad anticipates the Philippine central bank will cut rates by 25 bps to 4.25%, likely marking the end of its easing cycle after 200 bps of reductions since mid‑2024. Swaps markets mostly price this final move, while still-positive real rates are viewed as supportive for the Philippine Peso’s (PHP) uptrend.End of easing but Peso supported”Philippine central bank (BSP) is expected to cut rates 25bps to 4.25% (Thursday). At its last December meeting, BSP cut rates 25bps to 4.50% and noted that “the Monetary Board sees the monetary policy easing cycle…

Gold (XAU/USD) trades on the back foot on Tuesday as holiday-thinned volumes weigh on sentiment. At the time of writing, XAU/USD is trading at $4,863 near two-week lows, down 2.50 % on the day.Liquidity remains light as Lunar New Year holidays keep China and several Asian markets closed, with Chinese markets set to reopen only next Tuesday. Trading volumes are likely to pick up in the American session as traders return from the long weekend after US markets were shut on Monday for Presidents’ Day.The metal is also facing pressure from a firmer US Dollar (USD) and a rebound in…