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The Indian rupee hit a record low against the dollar on Thursday, pressured by dollar demand linked to the maturity of non-deliverable forward positions and corporate hedging, while the central bank likely intervened to hold it above the psychologically significant 92 level. The rupee ended the session at 91.9550 per dollar, down 0.2% from its previous close. Earlier in the session, it fell to 91.9850. Weakness in the currency also spilled over to Indian government bonds, reinforcing a dilemma for the market wherein the Reserve Bank of India’s efforts to shore up banking system liquidity get blunted by its FX…
The Indian rupee’s weakness is increasingly at odds with the country’s economic strength, according to the Economic Survey for 2025-26, which said the currency is “punching below its weight” despite robust growth, contained inflation, and healthy balance sheets, a paradox sharpened by global uncertainty and wary foreign investors.The survey came as the rupee slid to a fresh all-time low of Rs 91.9850 to the dollar, under pressure from persistent foreign outflows and rising hedging demand. Yet the government’s annual stocktake of the economy argued that the currency’s valuation fails to reflect what it described as India’s “stellar economic fundamentals”, even…
The US Dollar strengthened overnight, holding above key support levels, particularly against the Japanese Yen. However, the report from MUFG highlights that the US Dollar may remain vulnerable amid policy risks. The Fed’s recent decision to hold rates reflects a balanced macro risk outlook, but dissenting opinions within the Fed suggest potential for future cuts.Dollar remains strong yet at risk”The US dollar strengthened overnight and held above key support levels for now, led by gains against the yen after comments from Treasury Secretary Scott Bessent reinforced Washington’s strong dollar posture.””However, we think the US dollar may still stay vulnerable amid…
Rupee touched the psychologically crucial 92 to the US Dollar mark in intraday trading so far on Thursday amid a strong greenback and persistent outflows due to FPI selling in the Indian equity markets. Opening about 17 paise weaker at 91.95 per USD against previous close of 91.7825, the Indian currency hit saw a high/low of 91.9150/92.0000. RBI likely intervened in the market to stem the Rupee from depreciating beyond the 92 level. Amit Pabari, MD, CR Forex Advisors, observed that the U.S. Federal Reserve delivered a widely expected pause overnight, keeping interest rates unchanged at 3.50%–3.75% even as U.S.…
The Japanese Yen (JPY) reverses a part of the previous day’s slide against a broadly weaker US Dollar (USD), though it remains below a nearly three-month high, touched on Tuesday. Speculation that Japanese authorities would step in to stem further weakness in the domestic currency and the Bank of Japan’s (BoJ) hawkish stance turned out to be key factors underpinning the JPY. The USD, on the other hand, remains close to a four-year low, touched on Tuesday, amid bets for further policy easing by the US Federal Reserve (Fed), and exerts some downward pressure on the USD/JPY pair.The JPY bulls,…
The USD/JPY pair recovers some lost ground to near 153.35 during the early Asian session on Thursday. The US Dollar (USD) strengthens against the Japanese Yen (JPY) after US Treasury Secretary Scott Bessent affirms a strong USD policy. The US weekly Initial Jobless Claims report is due later on Thursday. Bessent said on Wednesday that the US has a strong USD policy and that means setting the right fundamentals. He also denied that the US was intervening in currency markets to support the Japanese Yen. “The retracement/rebound in the USD is pretty logical, really, given that Bessent pushed back about as hard as…
GBP/USD retreats on Wednesday after posting four-year highs of 1.3869 on Tuesday, edging below the 1.3800 mark as traders await the monetary policy decision of the Federal Reserve (Fed). At the time of writing, the pair trades at 1.3798, down 0.32%.Sterling eases below 1.3800 as traders lock in profits, brace for Fed’s decisionMarket mood is positive as the S&P 500 hits an all-time high past the 7,000-milestone, boosted by a rise in technological shares. Greenback, which was battered on Tuesday, trims some of its earlier losses, according to the US Dollar Index (DXY).The DXY, which measures the US Dollar’s strength…
NZD/USD halts its bullish momentum and trades around 0.6030 on Wednesday at the time of writing, down 0.20% on the day. The pair corrects after reaching a six-month high at 0.6051 on Tuesday, as the US Dollar (USD) stages a modest rebound, with markets trimming short positions ahead of the Federal Reserve’s (Fed) decision scheduled for later in the day.The Greenback recovers part of the ground lost in recent sessions, as investors turn more cautious ahead of the outcome of the Fed meeting. The US central bank is widely expected to keep interest rates unchanged in the 3.50%-3.75% range, following…
The Indian rupee closed marginally weaker on Wednesday, lagging Asian peers, on dollar demand linked to maturing non-deliverable forwards positions and month-end importer demand, while positive cues from a broad-based decline in the greenback capped losses.The rupee ended at 91.7825 per dollar, 0.1% down from its close at 91.72 in the previous session.The currency has weakened about 2% so far this month, making it the worst performer among its Asian currencies, as investors continue to fret over persistent foreign portfolio outflows from equities. Outflows have already touched $4 billion in January.INR “continues to be very flow-dependent and is showing little…
Rupee closed marginally weaker on Wednesday, lagging Asian peers, on dollar demand linked to maturing non-deliverable forwards positions and month-end importer demand, while positive cues from a broad-based decline in the greenback capped losses.The rupee ended at 91.7825 per dollar, 0.1% down from its close at 91.72 in the previous session.The currency has weakened about 2% so far this month, making it the worst performer among its Asian currencies, as investors continue to fret over persistent foreign portfolio outflows from equities. Outflows have already touched $4 billion in January.INR “continues to be very flow-dependent and is showing little sensitivity to…