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The Indian rupee is poised to kick off Thursday on a weaker note after a long-standing pressure point returns to the fore, with oil prices climbing after Iran and the United States traded strikes.The rupee is expected to open in the 95.35-95.40 per dollar range, traders said, having settled at 95.2650 on Wednesday. The currency climbed to a high of 95.10 on Wednesday, aided by what traders said was dollar selling by state-run banks, likely on behalf of the Reserve Bank of India (RBI).It appears that after taking several steps to support the currency, the RBI is now reinforcing its…
“Ending soon” did not survive the day. Hours after telling Fox News the Iranians had asked him to stop the bombing, Trump was complaining Tehran took “too long to negotiate a deal,” warning it would “pay the price,” and insisting all Iran has to do is “start signing a paper.” By evening, US Central Command confirmed strikes on multiple targets for a second straight day, citing “Iran’s unwarranted and continued aggression,” while Defense Secretary Pete Hegseth said “key facilities” were being hit and sidestepped a question on whether striking civilian infrastructure would amount to a war crime. Iranian media placed…
West Texas Intermediate (WTI) trades around $89.40 at the time of writing on Wednesday, up 2.33% on the day, as investors return to the Oil market following a strong rebound driven by geopolitical tensions in the Middle East.Crude Oil prices are recovering a bullish tone after United States (US) President Donald Trump warned that further military operations against Iran remain possible if Tehran continues to delay negotiations with Washington. In a post on Truth Social, Trump stated that Iran’s military capabilities have been severely weakened and argued that Iranian authorities now have no alternative but to negotiate.This rhetoric has revived…
ING strategists Warren Patterson and Ewa Manthey highlight that Chinese unwrought Aluminium and product exports rose strongly in May to the highest level since November 2024, helped by overseas demand after Middle East disruptions. They also note that CFTC (Commodity Futures Trading Commission) data show an increase in net long Aluminium positions, driven by declines in both longs and shorts.China exports and CFTC data”On the export side, shipments of unwrought aluminium and products rose 15.5% YoY to 632.4kt.””This is the highest since November 2024, as producers responded to stronger overseas demand following supply disruptions from the Middle East.””Aluminium net longs…
The Indian rupee navigated competing impulses to end little changed on Wednesday, with traders pointing to volatility in oil prices, elevated dollar demand due to maturing non-deliverable forward contracts and likely central bank intervention.The rupee closed at 95.2650 per dollar, up marginally compared to its close of 95.35 in the previous session.The local currency oscillated between 95.11 and 95.56 over the course of the trading session. State-run banks were spotted offering dollars and conducting dollar-rupee buy/sell swaps, most likely on behalf of the Reserve Bank of India, traders said.Brent oil prices steadied near $90 per barrel on Wednesday after swinging…
The Canadian Dollar (CAD) is hovering near the upper boundaries of its year-to-date range against the US Dollar, underperforming as one of the weakest major currencies in recent weeks. A sharp correction in Gold prices, sluggish relative economic growth, and negative bond yield spreads with the US have combined to create persistent headwinds for the Loonie. As the market prepares for critical central bank decisions, major financial institutions are weighing whether the currency is poised for an immediate stabilization or if it will face prolonged pressure.USD/CAD daily chart. Source: FXStreet.Declining commodity prices and widening yield gaps drag the Loonie lowerMacro strategy…
The rupee is likely to average around 96/USD in FY27, however, the outlook remains subject to key downside risks, including potential US dollar appreciation and a rate hike scenario, geopolitical developments, and movements in crude oil prices, according to a report by brokerage house Motilal Oswal. The report highlighted that the rupee had weakened sharply during April-May 2026, hitting a low of 96.8/USD on May 20 amid concerns over rising crude oil prices, widening trade deficits, and sustained foreign portfolio outflows. However, it has since recovered about 1.3 per cent from its lows as of June 9, 2026, and averaged…
The Indian central bank likely stepped in to the foreign exchange market on Wednesday to support the rupee, three traders told Reuters, as maturing contracts in the non-deliverable forwards market exerted pressure on the currency. The rupee was at 95.27, up modestly on the day after hitting an intra-day low of 95.5625 in early trading. The Reserve Bank of India also likely paired its spot dollar sales with dollar-rupee buy/sell swaps for maturities over 1 year, the traders said. Both the spot dollar sales and swaps were being carried out by state-run lenders, likely on behalf of the RBI, one…
The US Bureau of Labor Statistics (BLS) will publish the May Consumer Price Index (CPI) data on Wednesday. The report is expected to show another step up in consumer inflation, driven by the persistently high Oil prices due to the ongoing crisis in the Middle East. The monthly CPI is forecast to rise 0.5%, following the 0.6% increase recorded in April, while the annual reading is seen climbing to its highest level since May 2023 at 4.2%, from 3.8% in April. Core CPI figures, which exclude volatile food and energy prices, are expected to post an increase of 0.3% and…
The United States (US) officials said that the second round of strikes in Iran is taking place now, targeting air defense and radar systems, Axios reported early Wednesday.This action came as Washington launched retaliatory strikes against Iran on Tuesday in what it called a proportional response to the shooting down of a US helicopter gunship near the Strait of Hormuz a day earlier.Iran’s state television reported that explosions and air defense sirens were heard in several cities along Iran’s Persian Gulf coast, including the city of Sirik and the island of Qeshm. Two Iranian officials stated that the airstrikes had targeted military…