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The rupee appreciated 14 paise to close at 90.33 (provisional) against the US dollar on Thursday, on trade deal optimism and overnight decline in commodity prices, even as the upside remained capped as investors look for more clarity on the India-US trade deal. Forex traders said significant corporate dollar demand and a weak trend in domestic equities restricted the upside for the local unit. Notwithstanding the trade-deal optimism, forex traders said market participants are now shifting focus from celebration to verification as no official documents have been released, and neither side has formally published the final terms. Moreover, investors are…
The European Central Bank (ECB) is holding its two-day meeting and will announce its monetary policy decision on Thursday. The ECB is widely expected to keep interest rates on hold for the fifth consecutive meeting, leaving the main refinancing operations, the marginal lending facility, and the deposit facility at 2.15%, 2.4%, and 2%, respectively.Additionally, ECB President Christine Lagarde will hold a press conference afterward to explain policymakers’ reasoning behind the decision. Ahead of the announcement, the EUR/USD pair trades above the 1.1800 mark, stabilizing after retracing sharply from January’s peak at 1.2082. What to expect from the ECB interest rate…
The rupee traded in a narrow range and gained 7 paise to 90.40 against the US dollar in early trade on Thursday, amid corporate dollar demand and as investors are awaiting for confirmation on the India-US trade deal. Forex traders said market participants are now shifting focus from celebration to verification as no official documents have been released, and neither side has formally published the final terms. Moreover, investors are awaiting cues from Friday’s RBI interest rate announcement. At the interbank foreign exchange market, the rupee opened at 90.52 against the US dollar, then gained some ground to 90.40, registering…
Silver price (XAG/USD) plunged over 10% after two days of gains, trading around $77.00 per troy ounce during the Asian hours on Thursday. Silver prices fall as precious metals face renewed selling pressure and increased volatility.Dollar-denominated precious metals, including Silver lose ground amid a stronger US Dollar (USD), fueled by hawkish signals from the Federal Reserve (Fed) and expectations of a slower pace of US rate cuts.Fed Governor Lisa Cook said she would not back another cut without clearer evidence that inflation is easing, stressing greater concern over stalled disinflation than labor market weakness.Investors also weighed the implications of Kevin…
The dollar steadied at the start of Asian trade on Thursday ahead of interest rate decisions from the European Central Bank and the Bank of England, both of which are expected to keep rates on hold later in the global day. The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.2% at 96.671, having traded near a two-week high earlier. The euro was steady at $1.1800 ahead of the European Central Bank decision, where it is expected to keep rates on hold. Investors’ attention will be focused on the post-policy press conference…
The USD/JPY pair extends the rally to around 156.85 during the early Asian session on Thursday. The Japanese Yen (JPY) weakens to a two-week low against the US Dollar (USD) amid concern over Japan’s fiscal health under Prime Minister Sanae Takaichi’s expansionary spending policy. Traders will closely monitor Japan’s snap elections scheduled for Sunday.Takaichi’s ruling Liberal Democratic Party (LDP) is expected to gain more seats in the national election as she seeks voter backing for increased spending, tax cuts, and a new security strategy. Her expansionary fiscal policies raise concerns about Japan’s fiscal outlook, due to fears of debt-funded spending, which drags…
Despite the weakened Danish Krone (DKK) against the Euro (EUR), the Danish central bank has not intervened in the foreign exchange market, indicating that the current interest rate spread will likely remain unchanged. The Krone has shown slight appreciation recently, but the longest period without intervention since the Euro’s introduction continues. Nordea analysts suggest that a seasonal weakening could occur as dividend payments increase in the coming months.No intervention from the Danish central bank”Despite a weakened Danish krone against the euro, the Danish central bank has not yet intervened in the foreign exchange market. This supports our expectation that the…
A dollar/rupee buy/sell swap involves RBI buying dollars and giving banks rupee liquidity in the first leg (February 6) of the transaction | Photo Credit: iStockphoto The Reserve Bank of India’s (RBI) bid to absorb dollars and provide durable rupee liquidity to the banking system via a three-year US dollar/rupee buy/sell swap auction on Wednesday saw robust demand, with market participants seeking to deploy $25.03 billion against the notified amount of $10 billion.The Central bank absorbed the notified amount of $10 billion thereby, providing the banking system rupee liquidity amounting to about ₹90,000 crore. The auction was part of RBI’s…
EUR/GBP eases toward 0.8610 on Wednesday, with the cross pressured by the Euro’s (EUR) relative weakness against a Pound Sterling (GBP) supported by monetary policy expectations in the United Kingdom (UK). The latest macroeconomic indicators from the Eurozone send mixed signals and reinforce the view of a fragile economic recovery, limiting the upside potential of the single currency.In the Eurozone, the HCOB Services Purchasing Managers Index (PMI) came in at 51.6 in January, a four-month low, below market expectations and sharply down from December. In Germany, the downward revision of the HCOB Services PMI to 52.4 confirms that activity in…
At the interbank foreign exchange, the rupee opened at 90.35 and touched an early high of 90.26 and a low of 90.54 against dollar. | Photo Credit: FRANCIS MASCARENHAS The rupee depreciated 11 paise to 90.43 (provisional) against the US dollar on Wednesday, after a sharp rally in the previous trading session following India-US trade deal announcement, on suspected dollar buying by corporates and importers.Forex traders said despite the positive sentiment after the India-US trade deal, caution still remains as there is no signed or officially released trade agreement yet — no framework text or final documentation.At the interbank foreign…