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The Indian rupee lumbered in a thin band before ending modestly weaker on Monday as a decline in local stocks eroded the boost to market sentiment from gains in Asian currencies after the U.S. and Iran agreed to halt recent hostilities.The rupee settled at 94.54 per dollar, down 0.1% from its previous close at 94.3950.Tehran and Washington agreed to renew talks regarding their dispute over the Strait of Hormuz, per a U.S. official, raising hopes that they may save an interim peace deal that was under pressure from days of tit-for-tat strikes.Brent crude oil prices were up about 1% at…
The rupee pared initial gains and settled lower by 9 paise at 94.54 (provisional) against the US dollar on Monday, as renewed geopolitical tensions hit investors’ risk appetite.Forex traders said the rupee opened on a positive note with crude oil prices remaining supportive and foreign inflows improving, but a renewed flare-up in geopolitical tensions after fresh military exchanges between the US and Iran dented investor sentiment.At the interbank foreign exchange market, the rupee opened at 94.36, then gained momentum and touched an intraday high of 94.25 and a low of 94.56 against the American currency.At the end of Monday’s trade,…
United Overseas Bank’s (UOB) Quek Ser Leang sees USD/JPY continuing to consolidate just below the 2024 high of 162.00, with intraday trading expected between 161.45 and 161.95. Despite fading momentum, the bank retains a mildly positive 1–3 week view as long as support at 161.25 holds, and longer-term analysis still allows scope to test the top of a rising wedge.Risk of break above 162.00 still intact”24-HOUR VIEW: We indicated last Friday that USD “could trade between 161.45 and 161.95.” USD then traded within a range of 161.51/161.84, closing largely unchanged at 161.73 (-0.03%). The price action provides no fresh clues,…
The rupee appreciated 20 paise to 94.25 against the US dollar in early trade on Monday supported by easing crude oil prices, even as a firm US dollar and tepid investor risk appetite weighed on sentiments.Forex traders said the rupee opened on a positive note with oil prices remaining supportive and foreign inflows improving. The overall bias remains positive for the rupee, they said, adding that the immediate hurdle remains the US dollar, which continues to hold firm near a 13-month high.At the interbank foreign exchange market the rupee opened at 94.36, then gained momentum and touched 94.25, registering a…
NZD/USD inches lower after opening at a bullish gap, trading around 0.5640 during the Asian hours on Monday. The pair remains in the positive territory as the US Dollar (USD) remains subdued on easing safe-haven demand following reports that Washington and Tehran have agreed to halt attacks against each other before peace talks resume in Doha this week.However, traders remain cautious amid fluid Middle East headlines, assessing regional stability and its impact on global risk sentiment. This diplomatic window opens after days of retaliatory strikes, which began Thursday when an Iranian projectile hit a cargo vessel. Both Washington and Tehran…
The US dollar is now on track for a 2.5% gain for June, which marks the biggest monthly advance since July last year. | Photo Credit: istock.com The U.S. dollar was on the defensive on Monday but remained on track for its biggest monthly gain in nearly a year, due to tension in the Gulf and ahead of jobs data that could shape the Federal Reserve’s rate path.The U.S. and Iran traded fresh barbs over the weekend before they agreed to stop tit-for-tat attacks and meet in Qatar on Tuesday, leaving investors nervous about a fragile ceasefire.Oil prices rose on…
Renewed Middle East hostilities, foreign portfolio flows and U.S. rate-hike bets will drive the Indian rupee and government bonds as traders return from a long weekend.The rupee closed at 94.3950 per U.S. dollar on Thursday, little changed on the week but on course for its first month-on-month gain since February. Indian markets were closed on Friday for a local holiday.Over the weekend, Iran struck U.S. military sites in Kuwait and Bahrain after President Donald Trump threatened to target Iranian leaders unless they upheld the interim peace deal.The focus will yet again turn to oil prices, with any retreat in risk…
Mumbai: The success of the Reserve Bank of India’s June measures to attract foreign currency inflows will hinge on whether the country can strengthen its balance of payments (BoP) over the next three to five years, economists said, warning that these steps only defer external sector risks.The central bank earlier this month offered a concessional swap facility for external commercial borrowings (ECBs) and foreign currency non-resident bank (FCNR[B]) deposits to attract dollar inflows amid a sharp depreciation of the rupee, effectively buying policymakers time at a cost largely borne by the RBI.The inflows, however, are temporary. As ECBs mature and…
The AUD/USD pair trades on a flat note around 0.6895 during the early Asian session on Monday. Traders continue to assess the developments surrounding talks to end the US war with Iran. The Reserve Bank of Australia (RBA) will publish the minutes of its monetary policy meeting on Tuesday. All eyes will be on the US employment report later on Thursday. Reuters reported on Sunday that the US and Iran agreed to pause recent hostilities in the Gulf and renew talks regarding their dispute over the Strait of Hormuz. Both countries plan to meet in Qatar on Tuesday. This development came after several…
The dollar fell for a second straight session on Friday as recent economic data and a drop in oil prices slightly cooled expectations for Federal Reserve rate hikes, although the yen remained in territory that left it primed for an intervention. Despite the recent declines, the greenback was still up for the week and on pace for its strongest monthly percentage gain since July after hitting a 13-month high earlier in the week. Thursday’s data showing a key measure of U.S. inflation met economists’ expectations and easing oil prices, down about 4% on Friday, have moderated rate-hike bets slightly.Markets are…