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The Indian rupee ended modestly weaker on Wednesday, as companies hedged their dollar exposures and as traders assessed the stronger outlook for the Asian currency a day after a trade deal with the U.S. led to its sharpest rally in over 7 years.The rupee settled at 90.4350 per dollar, down 0.2% from its close at 90.2650 in the previous session.Dollar demand related to maturing positions in the non-deliverable forwards market, corporate hedging and modest portfolio inflows were among the factors that influenced the rupee on Wednesday, traders said.Before building positions in either direction, market participants are trying to calibrate for…
The rupee’s biggest rally in seven years will give the central bank scope to rebuild its foreign-exchange reserves, potentially limiting further gains after the boost from the India-US trade deal, according to some analysts.Barclays Bank Plc and Nomura Holdings Inc. are among those predicting that the Reserve Bank of India will use the recovery in the rupee to buy dollars. They recommend shorting the rupee — Nomura sees it at 94 to a dollar by May, while Barclays is targeting that level via a three-month offshore position.The rupee was down 0.1% to 90.40 against the dollar on Wednesday, following a…
Gold (XAU/USD) builds on a solid recovery from the $4,400 mark, or a four-week low touched on Monday, and gains strong follow-through positive traction for the second straight day on Wednesday. Concerns over rising tensions between the US and Iran resurfaced following overnight reports that the US shot down an Iranian drone in the Arabian Sea. This forces investors to take refuge in traditional safe-haven assets, including the precious metal.The strong move up is further aided by prospects for lower US interest rates, which keep a lid on the recent US Dollar (USD) recovery from a four-year low and lift…
Bank of America expects the Indian rupee to strengthen further by the end of March, after a trade agreement with the U.S. led to its sharpest gain in over seven years on Tuesday, the bank’s top treasury official in India told Reuters.”We are expecting the rupee to strengthen to around 88.60-89.00 against the U.S. dollar, 2% below the bank’s previous forecast for the pair,” said Vikas Jain, head of India fixed income, currencies and commodities trading at the bank in an interview on Tuesday.The foreign lender had earlier forecast the currency at 90.50-91.00 levels.U.S. President Donald Trump announced late on…
The rupee depreciated 22 paise to 90.54 against the US dollar in early trade on Wednesday, following a sharp rally after India and the US agreed to a trade deal on suspected dollar buying by corporates and importers. Forex traders said despite the positive sentiment post 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 exchange market, the rupee opened at 90.35 against the US dollar, then lost ground and fell to 90.54, registering a loss of 22 paise over…
The Australian Dollar (AUD) advances against the US Dollar (USD) on Wednesday after registering over 1% gains in the previous session. The AUD/USD pair holds ground after China’s Services Purchasing Managers’ Index (PMI) rose to 52.3 in January from 52.0 in December. This figure came in stronger than the expectations of 51.8. China is a key trading partner of Australia, so any changes in the Chinese economy could impact the AUD.The AUD rose after the release of seasonally adjusted S&P Global Purchasing Managers’ Index (PMI) data, which showed Australia’s Composite PMI rising to 55.7 in January from 51.0 in December.…
The NZD/USD pair holds positive ground near 0.6050 during the early Asian session on Wednesday, bolstered by a weaker US Dollar (USD). Increased US policy volatility continues to drag the Greenback lower against the New Zealand Dollar (NZD). Traders will take more cues from China’s January RatingDog Services Purchasing Managers Index (PMI) report, which is due later on Wednesday. Data released by Statistics New Zealand showed on Wednesday that New Zealand’s Unemployment Rate rose to 5.4% in the fourth quarter (Q4) of 2025, up from 5.3% in Q3. The figure came in above the market consensus of 5.3% and reached levels last…
The Indian rupee rallied 125 paise on Tuesday after the announcement of US-India trade deal lifted sentiments on the currency, logging its best day in seven years, LSEG data said. The rupee closed at 90.26/$ versus its previous close of 91.51/$1, and was unable to strengthen beyond the 90/$1 mark due to the presence of the Reserve Bank of India.Central bank was seen buying dollars around noon on Tuesday, after several months of selling dollars to limit depreciation.The rupee traded in the range of 90.04/$1 and 90.51/$1 on Tuesday, while foreign portfolio investors bought Rs 4,900 crores in February so…
The British Pound (GBP) trades in a tight range against the US Dollar (USD) on Tuesday, with GBP/USD struggling to find direction as a thin economic calendar in both the United States (US) and the United Kingdom (UK) keeps price action subdued. At the time of writing, the pair is consolidating near 1.3690, pausing a two-day losing streak.A steady US Dollar is capping upside attempts in GBP/USD. The Greenback staged a sharp rebound from four-year lows after markets welcomed US President Donald Trump’s nomination of former Federal Reserve (Fed) Governor Kevin Warsh as the next Fed Chair.Warsh’s nomination has eased…
Improved forex market sentiment following the US-India trade deal could allow the Reserve Bank of India (RBI) to reduce its heavy forex interventions, experts said. | Photo Credit: JOTHI RAMALINGAM B With improved forex market sentiment in the wake of the US-India trade deal, the RBI is expected to scale back its forex interventions aimed at reducing volatility in the rupee-dollar exchange rate. This, in turn, will improve rupee liquidity in the banking system, say experts.The RBI has intervened heavily in the forex market through dollar sales over the last few months in the wake of continuous FPI selling in…