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European Central Bank (ECB) Governing Council (GC) member and Governor of the Lithuanian central bank, Gediminas Simkus, said during European trading hours on Thursday that the central bank needs to exercise caution on interest rates as the situation is changing. However, Simkus added that it is too early to predict what the ECB will do in the April policy meeting.Market reactionNo meaningful impact of ECB Simkus’ comments on the Euro (EUR) as they lack any clear guidance on the monetary policy outlook. As of writing, EUR/USD trades 0.5% lower to near 1.1530 amid risk-off mood. ECB FAQs The European Central…
Indian rupee jumped sharply against the US dollar on Thursday, recording its sharpest single-day rise in more than 12 years, after the Reserve Bank of India (RBI) extended its curbs to offshore derivatives in order to protect the currency from its free fall.Rupee gained nearly 2% to 92.94 against the US dollar today, marking the biggest single-day gain since September 2013. This came despite broader market weakness and persisting FII outflows. RBI’s fresh crackdown on forex speculationThe RBI on Wednesday barred banks from offering rupee non-deliverable forwards to resident and non-resident clients. Banks can still offer deliverable FX contracts for…
The EUR/USD pair struggles to capitalize on its gains registered over the past two days, reaching the weekly top the previous day, and attracts heavy selling during the Asian session on Thursday. Spot prices drop below the 1.1550 level in the last hour amid the emergence of fresh buying around the safe-haven US Dollar (USD) as US President Donald Trump’s update on the Iran war dampens de-escalation hopes.Addressing the nation, Trump threatened that Iran would be hit extremely hard over the next two to three weeks and would be brought to the Stone Age if no deal is reached. Trump…
The Indian rupee extended gains against the U.S. dollar and rose above the 93 handle for the first time in nearly two weeks, as the central bank imposed curbs on speculative activity.The rupee climbed almost 2% to 92.94 per U.S. dollar after the latest central bank measures to curb a near one-way move witnessed in the currency over the last few days.The central bank has tightened rules to curb arbitrage flows and speculative bets that have weighed on the currency, even as concerns persist over India’s current account and weak capital flows. In a sweeping move, India barred banks from…
India’s central bank has intensified its crackdown on speculative activity in the rupee, this time targeting corporate arbitrage after its initial clampdown on banks failed to alleviate pressure on the currency. Late on Wednesday, the Reserve Bank of India barred banks from offering rupee non-deliverable forwards to resident and non-resident clients. It further said that companies cannot rebook cancelled forward contracts. The series of measures from the central bank comes at a time when the rupee has hit a string of all-time lows on worries over the spillovers from the Iran war. The currency fell 4.24% in March, marking its…
US President Donald Trump will address the nation at 01:00 GMT on Thursday to give an “update” on the war with Iran, CNN reported. The speech will be the first major national address the president has delivered on the conflict since the first joint US-Israeli strikes on Iran in late February.According to a White House official, Trump is expected to tout US military successes against Iran and reiterate a two- to three-week timeline for concluding the operation.Market reactionAt the time of writing, the West Texas Intermediate (WTI) is down 3.75% on the day at $93.82. WTI Oil FAQs WTI Oil…
Reserve Bank of India has intensified its crackdown on speculative activity in the rupee, this time targeting corporate arbitrage after its initial clampdown on banks failed to alleviate pressure on the currency.Late on Wednesday, the Reserve Bank of India barred banks from offering rupee non-deliverable forwards to resident and non-resident clients. It further said that companies cannot rebook cancelled forward contracts.The series of measures from the central bank comes at a time when the rupee has hit a string of all-time lows on worries over the spillovers from the Iran war. The currency fell 4.24% in March, marking its worst…
The Pound Sterling (GBP) advances over 0.70% on Wednesday as risk appetite improved amid speculation of an end to the Middle East conflict, following US President Donald Trump’s statement, “We’re going to be out of Iran pretty quickly.” GBP/USD trades above 1.3300 after bouncing off daily lows of 1.3216.Sterling advances as risk-on mood dents US Dollar despite hot pricesOn Tuesday, rumors surfaced that Trump was considering withdrawing from the conflict, even though the Strait of Hormuz would remain shut. Nevertheless, a Daily Mail columnist reported that sources at the White House said Trump is “considering taking Kharg Island.”Risk appetite improved…
The Reserve Bank of India on Wednesday barred authorized dealers from offering rupee non-deliverable forwards to resident and non-resident clients, further tightening foreign exchange rules as the South Asian currency faces persistent pressure.The central bank said that while lenders could offer deliverable foreign exchange derivative contracts to users to meet their hedging requirements, they need to ensure the clients have not taken an offsetting position in the non-deliverable forwards (NDF) market.The changes follow the regulator’s decision last week to impose a $100 million cap on authorised dealers’ net open positions on the rupee in the foreign exchange market, applicable by…
HSBC’s global CIO team keeps an Overweight six‑month view on global equities, supported by AI‑related opportunities and resilient earnings. They favour the United States, Japan and Asia ex‑Japan, while staying Underweight Europe ex‑UK and Neutral on Emerging Markets overall. Sector-wise, they highlight Industrials, Communications, Materials and Utilities, and downgrade Consumer Discretionary on weaker sentiment and higher energy costs.Overweight global, US, Japan and Asia ex-Japan”While market uncertainty persists, the fundamental backdrop for global equities remains supportive. With AI broadening opportunities across sectors and regions, we continue to diversify beyond the US and technology to reduce concentration risk.””[Japan] Wage growth and fiscal…