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The Indian rupee ended barely changed on Monday, as usual dollar demand met offsetting inflows, keeping the currency largely rangebound at the start of the week.The rupee moved in a narrow 10-paise band to end at 90.65 against its previous close of 90.6350.The rupee had jumped earlier this month, backed by the optimism from the U.S.-India trade deal, but is back to tracking flow dynamics and external cues.Dollar sales by exporters and foreign portfolio inflows have helped the currency rise 1.5% so far in February.However, that support could weaken.Live Events”The rupee is not racing. It is waiting,” said Amit Pabari,…
The rupee settled flat at 90.66 (provisional) against the US dollar in a range-bound trade on Monday, as positive momentum in domestic equities was offset by a strong US dollar in the overseas market. According to forex traders, lower crude oil prices supported the local unit, while foreign fund outflows limited its movement. In the interbank foreign exchange market, the rupee opened at 90.63 against the US dollar and moved between an intraday high of 90.61 and a low of 90.72 during the session. The domestic unit closed the session at its previous closing level of 90.66 (provisional) against the…
Rabobank’s Global Daily report highlights the European Central Bank’s decision to allow all non-Eurozone central banks to borrow Euros against Euro-denominated collateral as an attempt to bolster the Euro’s global role. The report stresses that this implies larger Euro-denominated asset markets, a bigger European trade deficit, and a stronger Euro exchange rate, which would be politically sensitive across member states.ECB liquidity step and Euro implications”The ECB played its part by announcing “all central banks” outside the euro area would be allowed to borrow euros against collateral denominated in that currency.””This is an attempt to boost the global role of the…
The rupee slipped by 1 paisa to 90.67 against the US dollar in the early session on Monday amid FII outflows and a stronger greenback. A marginal rise in global crude oil prices and a sharp decline in the country’s forex reserves also weighed on the local unit, according to forex traders. At the interbank foreign exchange, the rupee opened higher at 90.63 before falling to 90.67 against the US dollar, down 1 paisa from its previous close. The rupee consolidated in a narrow range and settled 5 paise lower at 90.66 against the US dollar on Friday. “The rupee…
The USD/CAD pair is seen extending its sideways consolidative price move for the second straight day and trading above the 1.3600 mark during the Asian session on Monday. Moreover, the mixed fundamental backdrop warrants some caution before positioning for an extension of last week’s bounce from the vicinity of the 1.3500 psychological mark.A modest US Dollar (USD) uptick turns out to be a key factor acting as a tailwind for the USD/CAD pair at the start of a new week. However, the growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs at least two times in 2026,…
Foreign exchange reserves dipped substantially in the latest week, driven by a drop in gold reserves while foreign currency assets rose. India’s foreign exchange reserves dipped $6.711 billion in the week that ended February 6 to $717.064 billion, after having reached a new all-time high in the prior week, according to the Reserve Bank of India’s latest data.Foreign exchange reserves dipped substantially in the latest week, driven by a drop in gold reserves while foreign currency assets rose.Over the past few weeks, the forex kitty has been largely in an uptrend. Foreign exchange reserves touch record high of $723.774 billion…
MUFG’s Michael Wan views the detailed US–India interim trade deal, including tariff cuts and exemptions, as positive for India’s external position. He sees scope for USD/INR to briefly break below 90 in coming months, but expects only a shallow INR recovery. MUFG forecasts USD/INR at 89.50 in Q1 2026 before rising back to 93.00 by year-end on FDI repatriation and wider deficits.Tariff cuts help but upside later”USD/INR: US and India provided more details around the interim trade deal. Overall we think it is a positive, and we forecast USD/INR at 89.50 by March 2026 and 93.00 by Dec 2026″”Overall, we…
Commerzbank’s FX analysts note that Singapore’s 2026 Budget emphasizes supply-side support, SME internationalisation and capital-market development, including fresh funding for the Equity Market Development Programme and Anchor Fund. The Singapore Dollar has outperformed most Asian peers, with USD/SGD nearing a 10-year low as the Straits Times Index hits record highs.Fiscal support and strong currency performance”Prime Minister Lawrence Wong unveiled the 2026 Budget yesterday, with a focus on supply-side support and capital market development.””In FX, USD-SGD was little changed at 1.2630 yesterday.””The pair is approaching the 10-year low of 1.2580.””This year, SGD is the second best performing Asian currency behind MYR…
MUFG’s Lin Li and Khang Sek Lee note that China’s January CPI slowdown was heavily distorted by Chinese New Year base effects, with food and services dragging headline inflation. PPI deflation narrowed on stronger global metals prices and tech-related demand. They expect reflation to remain gradual despite anti-involution measures, while the PBOC’s “moderately loose” stance and upcoming easing should keep USD/CNY on a mild downward path in 2026.Base effects mask underlying reflation trend”Looking beyond the January prints, we think the reflation will likely remain gradual despite the ongoing anti-involution campaign.””In China, the PBOC has reinforced a clear easing bias for…
Standard Chartered’s Senior Economist Tommy Wu raises Hong Kong’s 2026 GDP growth forecast to 3.2% from 2.5%, citing robust Q4 momentum, stronger financial activity and improving consumer sentiment. The bank expects a modest housing market rebound but remains cautiously optimistic due to structural shifts and global risks. HIBOR is seen lower in H1 before gradually rising again by Q4.Growth upgraded but risks still present”We raise our 2026 GDP growth forecast to 3.2% (from 2.5%), given the robust growth momentum in Q4.””We expect the financial industry to capitalise on Hong Kong’s regained impetus, notably in IPO fundraising and Renminbi internationalisation.””Consumer sentiment…