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Mumbai: The rupee strengthened for the fifth consecutive session to end at 94.33 on Thursday, versus its previous close of 94.52 per dollar. The rupee opened at 94.66, and later strengthened to an intraday high of 94.16, which prompted the Reserve Bank of India to intervene and absorb dollars. Its weakest level on Thursday was at 94.70 per dollar.Brent crude oil prices below $78 per barrel and unwinding of long dollar positions helped the currency gain to a six week high, traders said. Source
Japan’s National Consumer Price Index (CPI) rose by 1.5% YoY in May, compared to the previous reading of 1.4%, according to the latest data released by the Japan Statistics Bureau on Friday.Further details unveil that the National CPI ex Fresh food arrived at 1.4% YoY in May versus 1.4% prior. The figure came in line with the market consensus. CPI ex Fresh Food, Energy climbed 1.8% YoY in May compared to the previous reading of 1.9%.Market reaction to Japan’s National CPI dataFollowing Japan’s CPI inflation data, the USD/JPY pair is up 0.42% on the day at 161.32. Inflation FAQs Inflation measures the rise in the price of…
The rupee closed higher for the fifth consecutive trading session, buoyed by the US and Iran signing an initial agreement to end the West Asia conflict. This softened crude oil prices, which will reduce India’s import bill.The rupee closed 20 paise stronger at 94.33 per US dollar against the previous close of 94.53. Intra-day, it touched a high of 94.21, the strongest level in over six weeks.Amit Pabari, MD, CR Forex Advisors, said: “For now, markets are focused on the possibility of peace. As a result, Brent crude slipped below $79 per barrel on Thursday, returning to levels last seen…
EUR/USD trades around 1.1470 on Thursday at the time of writing, down 0.22% on the day and hovering near its lowest level in two months. The pair extends its decline from the area above 1.1600 reached earlier this week, as the US Dollar (USD) continues to benefit from the Federal Reserve’s (Fed) hawkish policy outlook.The Fed left its benchmark interest rate unchanged within the 3.5%-3.75% range on Wednesday, in line with market expectations. However, updated economic projections showed that roughly half of the Federal Open Market Committee (FOMC) members still expect at least one additional rate hike before the end…
The Reserve Bank of India (RBI) on Thursday said it will conduct a three-day variable rate repo (VRR) auction of Rs 1 lakh crore on June 19, according to a notification.The auction will take place between 9.30 am and 10 am on June 19, and the reversal of these funds will take place on June 22, the release said.”On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo (VRR) auction on Friday, June 19,” the RBI said in a release.Currently, the liquidity in the banking system is estimated to be in…
According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance shrank to 226K for the week ending June 13. The latest print came in a tad above initial estimates (225K) and was slightly lower than the previous week’s 230K (revised from 229K).Additionally, the 4-week moving average went up by 4K, bringing it to 223.25K from the revised average of the previous week (219.25K).The report also indicated that Continuing Jobless Claims increased by 24K to 1.810M for the week ending June 6.What do US Initial Jobless…
The Indian rupee’s rally on lower oil prices is likely to be constrained by the central bank’s unwinding of its sizable FX forward book and hedging of interest obligations on foreign currency deposits raised by Indian banks.The Reserve Bank of India’s short-dollar forward book is estimated to have ballooned to an all-time high of nearly $110 billion, according to two officials at foreign banks, up from $96 billion in April.The surge follows persistent central bank intervention across both domestic forwards and non-deliverable forward markets to support the rupee.The forward book is poised to expand further, with banks passing on the…
Bank Indonesia (BI) decided to hike the benchmark interest rate by 25 basis points to 5.75% on June 18, from the previous 5.5%. The decision aligned with the market expectations.The Indonesian Rupiah (IDR) received support against the US Dollar (USD) as an immediate reaction to the BI interest rate decision. However, the USD/IDR recovers and is trading around 17,890 at the time of writing.BI’s surprise rate hikeBI raised its benchmark interest rate by 25 basis points to 5.50% on June 9, stepping in to stabilise the Indonesian Rupiah after the currency hit a series of record lows. A central bank…
USD/IDR inches lower after opening at a bullish gap, remaining in the positive territory and trading around 17,880 during the Asian hours on Thursday. The currency pair breaks lower as the Indonesian Rupiah (IDR) finds support ahead of Bank Indonesia’s (BI) policy meeting on Thursday.Traders are actively pricing in the possibility of a 25-basis-point interest rate hike to 5.75%, building on momentum from last week when BI delivered a surprise 25-basis-point increase. That unexpected move was aimed squarely at defending the Rupiah and taming accelerating inflationary pressures, as the country’s annual inflation rate jumped to 3.08% in May from 2.42%…
The White House stated that US President Donald Trump and Iran’s Masoud Pezeshkian signed the memorandum of understanding to end the US-Israel war on Iran, BBC reported late Wednesday.The document has been signed electronically by the two leaders after Iranian parliamentary speaker Mohammad Bagher Ghalibaf and US Vice President JD Vance electronically signed the agreement on Sunday.Earlier, both Trump and Iranian officials indicated that there would be a formal signing ceremony sometime later this week. According to Bloomberg, Iran and the US are expected to formally sign the MOU to end the war on Friday in Geneva.Market reactionAt the time…