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The Reserve Bank of India sold a net $8.94 billion in the foreign exchange market in April, data released on Monday showed, as it stepped in to support the rupee that had plunged to record lows amid the U.S.-Iran war.The RBI said in its monthly bulletin that it purchased $16.23 billion and sold $25.17 billion in April. In March, the central bank had sold a net $9.8 billion.The volume of the central bank’s gold holdings, meanwhile, was unchanged during May at 880.52 metric tonnes, even as its value declined from $120.23 billion in late April to $112.6 billion last month,…
TD Securities strategists expect Canada’s May Consumer Price Index (CPI) to rise, with headline inflation projected at 3.1% year-on-year and 0.8% month-on-month, driven by higher energy prices and seasonal factors. Core goods and travel-related components are seen providing additional support, while CPI-trim and CPI-median are forecast to hold steady, keeping core inflation broadly aligned with Bank of Canada projections.Headline and core inflation expectations”We look for headline CPI to firm by 0.3pp to 3.1% y/y in May as prices rise 0.8% m/m (market: 3.0%, 0.7%), fueled by another large increase for energy products and seasonal tailwinds.””Core goods should see a modest…
The rupee depreciated 34 paise to close at 94.67 (provisional) against the US dollar on Monday, weighed down by the strength of the American currency in the overseas market.Forex traders said the rupee witnessed volatility as steady debt and deposit inflows pulled the domestic currency in one way, while the lack of clarity on the Middle East peace deal and a firm dollar pulled it the other way.At the interbank foreign exchange market, the rupee opened at 94.42, registering a decline of 9 paise from its previous close. In intraday trade, the rupee traded in the range of 94.24 to…
Here is what you need to know on Monday, June 22:Investors cling to a cautious stance at the beginning of the week as they assess the latest headlines coming out of the Middle East. In the second half of the day, May Consumer Price Index (CPI) data from Canada will be watched closely by market participants. Additionally, several policymakers from major central banks will be delivering speeches. US Dollar Price Last 7 Days The table below shows the percentage change of US Dollar (USD) against listed major currencies last 7 days. US Dollar was the strongest against the New Zealand…
USD/CHF remains stronger for the fourth consecutive day, trading around 0.8080 during the Asian hours on Monday. The pair remains close to a nearly seven-month high of 0.8091, reached on June 19, as the US Dollar (USD) receives support from safe-haven demand, which could be attributed to renewed concerns over a US-Iran peace deal.CNBC reported on Sunday that US President Donald Trump threatened direct strikes on Iran if Hezbollah continues its attacks on Israel. This warning has severely clouded the outlook for diplomatic progress between Washington and Tehran, completely dismantling the current peace framework, even as Vice President JD Vance…
The dollar was firm on Monday as uncertainty clouded a tentative U.S.-Iran peace deal following threats from President Donald Trump to restart the war in the Middle East and Tehran’s announcement it had closed the Strait of Hormuz. Despite rising tensions, U.S.-Iran peace talks stretched into their second day in Switzerland under the terms of a memorandum of understanding reached last week to extend a ceasefire from April for at least another 60 days. Chris Weston, head of research at Pepperstone, said it was not surprising how quickly adherence to the terms of the deal had broken down. “Ultimately, what…
Gold price (XAU/USD) trades with mild losses around $4,155 during the early Asian session on Monday. Traders continue to assess the developments surrounding the US-Iran peace talks in Switzerland. However, hawkish signals from the US Federal Reserve (Fed) might cap the upside for the precious metals in the near term. US President Donald Trump over the weekend threatened strikes on Iran if Hezbollah keeps attacking Israel, raising concerns about progress for peace talks between Washington and Tehran. Iranian negotiators suspended high-stakes talks with the US in Switzerland in response to a flurry of verbal threats issued by Trump to strike Iran again, but…
The Indian rupee has been hitting the headlines frequently since the beginning of the year. The domestic currency fell to a new low of 96.96 against the dollar in May this year. It has since recovered and is currently at 94.3,3 down 6 per cent for the year so far.The US-Iran peace deal, which has pulled oil prices sharply lower, and the Reserve Bank of India’s recent measures to attract foreign money inflows have aided the rupee’s recovery from its all-time low.It is not only against the dollar that the rupee has weakened. It has also fallen against other major…
Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon.The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: “Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized.”This is a developing story; more to come. Source
India’s balance of payments outlook looks more favourable than the rupee’s recent weakness suggests, with a Q1 CY26 surplus and lower oil and gold import assumptions prompting Goldman Sachs to cut its current account deficit forecasts, the brokerage said in a research report.Goldman Sachs said India posted a $7.2bn BoP surplus in Q1 CY26 despite softer capital inflows, supported by stronger remittances, robust services exports and low oil imports.The apparent divergence between INR weakness and strong underlying BoP fundamentals suggests recent currency pressure was driven more by precautionary dollar demand amid heightened West Asia’s uncertainty than by a deterioration in…