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The U.S. dollar nursed steep losses on Tuesday ahead of a slate of economic data that will shape the interest rate path, while the yen held on to its gains in the wake of Prime Minister Sanae Takaichi’s resounding election victory. Sterling was steady in early Asian hours after a volatile Monday as investors weighed the crisis facing Prime Minister Keir Starmer and rising wagers of further rate cuts. It last fetched $1.3682 after rising 0.6% in the previous session.The Japanese yen was at 155.85 per U.S. dollar, holding onto its overnight gains when it firmed 0.8%. Verbal warnings from…
The USD/JPY pair tumbles to near 155.90 during the early Asian session on Tuesday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) after Japanese Prime Minister Sanae Takaichi led the ruling Liberal Democratic Party (LDP) to a historic landslide win. Traders braced for key US economic data that could offer more clues on the Federal Reserve’s (Fed) monetary policy.Takaichi’s LDP secured a comprehensive victory in Sunday’s election. The LDP won 316 of the 465 seats in Japan’s lower house, the first time a single party has secured two-thirds of the chamber since the establishment of Japan’s parliament in…
The Canadian Dollar (CAD) remains on the front foot against the US Dollar (USD) on Monday, as a softer Greenback and firmer Oil prices continue to underpin the Loonie. At the time of writing, USD/CAD is trading around 1.3568, its lowest level since January 31, down more than 0.50% on the day.The Greenback remains under pressure as US President Donald Trump’s unpredictable trade policy, repeated attacks on the Federal Reserve’s (Fed) independence and mounting concerns over the US fiscal outlook weigh on confidence in US policy credibility.China has urged domestic banks to curb exposure to US Treasuries on market-risk concerns,…
Danske Bank’s Danske Research Team says Japanese Prime Minister Sanae Takaichi’s coalition secured a supermajority, giving her a strong mandate for tax cuts and higher military spending. The result drove Japanese stocks to record highs and initially weakened the Japanese Yen. Markets are framing her agenda as a new phase of Abenomics with implications for domestic assets and regional geopolitics.Supermajority win drives Abenomics 2.0 narrative”In Japan, Prime Minister Sanae Takaichi’s coalition secured a supermajority in the lower house, winning 328 out of 465 seats following a rare winter snap election.””The market reacted strongly to her victory, with Japanese stocks surging…
The Indian rupee closed a tad weaker on Monday, unable to benefit from a broadly weaker dollar in the face of corporate demand for the greenback over a trading session that was also marked by technical glitches.The rupee closed at 90.7575 per dollar, down 0.1% from its close at 90.6550 on Friday.Market participants had flagged issues with execution of trades on the interbank order matching system in early trading which were subsequently resolved, helping shore up trading volumes.In the latter half of the session, traders observed two-sided corporate activity alongside dollar demand from some foreign banks.Traders expect the rupee to…
The rupee witnessed a volatile trading session and settled for the day on a lower note, down 9 paise at 90.74 (provisional) against the US dollar on Monday, as traders assessed the details of the India-US interim trade framework. Forex traders said the rupee witnessed high volatility as the support from positive domestic equities and foreign fund inflows was negated by risk-off sentiments among investors. At the interbank foreign exchange market, the rupee opened at 90.66 against the US dollar, then gained some ground to touch 90.37, registering a gain of 28 paise over its previous close. It, however, erased…
Gold (XAU/USD) extends its sideways consolidative price move above the $5,000 psychological mark through the first half of the European session on Monday, though it remains below last week’s swing high amid mixed cues. Data released over the weekend showed that the People’s Bank of China (PBOC) extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve (Fed) expectations and concerns about the central bank’s independence drag the US Dollar (USD) lower for the second straight day, providing an additional boost to the non-yielding yellow metal.Meanwhile, signs of easing tensions in the Middle East boost…
Financial technology and data provider London Stock Exchange Group’s foreign exchange trading platform was facing technical issues in India on MondayTraders highlighted issues with trade execution on the interbank order matching system, restricting their ability to transact on the spot dollar/rupee trading platform.The technical issues began around the time the Indian rupee opened for trading at 9 a.m. IST and persisted through the first two hours of trade.LSEG did not immediately respond to a Reuters email seeking comment.LSEG is among the few entities other than banks that are authorised by the Reserve Bank of India to operate an electronic trading…
PO07_Pulling_rupee | Photo Credit: Anjana C _11700@Chennai The rupee gained 21 paise to 90.44 against the US dollar in early trade on Monday, supported by positive sentiments after India and the US reached a framework for an interim trade pact. Forex traders said the rupee opened on a lower note, but soon gained the lost ground and was trading on a positive note after India and the US on Saturday announced they have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade. Moreover, a…
The Japanese Yen (JPY) kicked off the new week on a weaker note as Prime Minister Sanae Takaichi’s landslide win in Sunday’s election paves the way for further fiscal stimulus. The initial market reaction, however, turns out to be short-lived after Japan’s Finance Minister Satsuki Katayama stepped up JPY intervention warnings and confirmed close coordination with the US against disorderly FX moves. This, along with some follow-through US Dollar (USD) selling, triggers an intraday USD/JPY turnaround of nearly 150 pips from the Asian session swing high, around the 157.65 region.Meanwhile, data released earlier today showed that Japan’s real wages shrank…