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The rupee declined 36 paise to settle at 90.70 (provisional) against the US dollar on Friday, weighed down by geopolitical uncertainty over the US-Iran talks, and a sharp rise in global crude oil prices. The currency gained in the first half of the session after the Reserve Bank announced a status quo on key lending rates; however, sustained foreign fund outflows pressured the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 90.28 against the greenback and oscillated between the high of 90.18 and the low of 90.83 during the session. It eventually settled at…
The report by Nordea, authored by Jan von Gerich, discusses the recent rebound of the USD against the EUR and JPY. Despite the rebound, the report maintains a bearish outlook for the USD in the long term as investors seek alternatives.Recent USD movements and market outlook”Such moves once again suggest that the USD is not on the verge of collapse and worries towards the status of the USD can ease as fast as they arise.””That said, we continue to think the USD will weaken further going forward, as investors continue to seek alternatives to the USD, even if such a…
The rupee rose 11 paise to 90.23 against the US dollar in early trade on Friday on positive investor sentiments as traders keenly awaited the RBI’s MPC announcement. However, FII outflows, rise in crude oil prices and a marginally stronger greenback capped sharper gains in the local unit, according to forex traders. At the interbank foreign exchange, the rupee opened at 90.28 against the greenback before rising to 90.23, up 11 paise from its previous close. On Thursday, the rupee appreciated 13 paise to close at 90.34 against the US dollar. “The Reserve Bank of India will announce its monetary…
The Indian rupee added to its weekly rally on Friday ahead of the central bank’s policy outcome, aided by possible one-off dollar sales that helped offset a risk-off backdrop.The rupee strengthened to 90.18 per dollar from 90.3550 in the previous session, taking its weekly advance, sparked by the U.S.-India trade deal, to 2%.The continued advance came despite challenging external cues. Most Asian currencies weakened, while risk appetite was fragile and foreign investors returned to selling Indian equities on Thursday, typically conditions that would weigh on the rupee.Bankers said the currency received support from a combination of residual optimism around the…
The Australian Dollar (AUD) slid for a third straight session against the US Dollar (USD) on Friday, weighed down by broad-based selling in global equities and other risk-sensitive assets. The commodity-linked AUD, often seen as a liquid barometer of global risk sentiment, came under pressure as a tech-driven stock sell-off, sparked by worries over heavy AI-related spending, rattled investor confidence.The Reserve Bank of Australia (RBA) Governor Michele Bullock’s comments, saying that the board lifted the Official Cash Rate (OCR) because the economy is more capacity-constrained than previously judged, meaning policy needed to be tighter. Bullock added that the RBA needs…
The Indian rupee is likely to open flat on Friday and hold a narrow range before the central bank’s policy announcement, with risk aversion limiting appetite for rupee and other emerging-market currencies. The 1-month non-deliverable forward indicated the rupee will largely remain unchanged from 90.3550 on Thursday. The currency, buoyed by the U.S.-India trade deal, is on track for its best weekly performance in more than three years.The rupee has repeatedly run into resistance near the 90-per-dollar level amid this trade deal rally, and bankers say the mark is likely to remain a key technical barrier.”There is buy interest (to…
The USD/JPY pair gains momentum to a two-week high near 157.00 during the early Asian session on Friday. The Japanese Yen (JPY) remains under selling pressure against the US Dollar (USD) ahead of Japan’s snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday. Markets expect that a victory for Japanese Prime Minister Sanae Takaichi will lead to expanded fiscal stimulus and continue the JPY’s weakness. Takaichi said that she aims to begin implementing a two-year suspension of the 8% consumption tax on food and beverage items within…
EUR/CAD trades around 1.6130 on Thursday at the time of writing, virtually unchanged on the day, as markets digest the European Central Bank’s (ECB) policy decision and monitor Canada-specific factors.The European Central Bank announced on Thursday, following its February meeting, that it kept its key interest rate unchanged at 2.15% in line with market expectations. In its statement, the ECB said that the Eurozone economy remains resilient in a challenging global environment, supported by low unemployment and solid private sector balance sheets.The central bank nevertheless acknowledged that the outlook remains uncertain, particularly due to persistent geopolitical tensions and uncertainty surrounding…
The Bank of England kept its main interest rate unchanged at 3.75% on Thursday with U.K. inflation remaining above target and economic growth is showing signs of picking up. The decision was widely anticipated in financial markets but the split on the nine-member rate-setting panel was much closer than expected. Five members of the Monetary Policy Committee opted to keep rates unchanged while four voted for a quarter-point cut. The central bank, which sets interest rates for the whole of the U.K., has been steadily reducing interest rates over the past 18 months, more often than not every three months.…
Governor Andrew Bailey takes questions from reporters, offering markets a clearer sense of how the central bank is thinking. His remarks follow the widely expected decision to keep the policy rate on hold at 3.75%.This section below was published at 12:00 GMT to cover the Bank of England’s policy announcements and the initial market reaction.At its February meeting, the Bank of England (BoE) held the policy rate at 3.75%, as markets had anticipated. The vote, however, exposed a split on the Monetary Policy Committee (MPC) as four members supported a 25-basis-point cut.BoE policy statement takeawaysAndrew Bailey, Governor of the Bank…