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GBP/USD turns negative on the day following remarks by the US President Donald Trump in Davos who said that he would not use excessive force to get Greenland. At the time of writing, the pair traded at 1.3433, down 0.03%.Sterling edges lower as improving risk sentiment offsets hotter UK inflation and pressures the Dollar lessMarket sentiment improved following comments of Trump in Davos. Despite insisting on negotiating with Denmark, he refrained from using the tariffs word, used over the weekend when he imposed 10% duties over eight countries including Denmark.Economic data has taken the backseat over geopolitical issues, which so…
The last time the rupee saw a steep single-day fall was on November 21, 2025, when it plummeted 93 paise. The rupee crashed on Wednesday to close at an all-time low of 91.6950, weighed down by a host of factors including outflows due to FPI selling in the Indian equity markets, corporate demand, ripple impact of the EU’s push back against aggressive US stance to acquire Greenland, and continuing uncertainty on India’s tariff agreement with the US.The Indian currency slumped about 73 paise vs previous close of 90.97. Opening weaker at 91.10 per USD, the rupee tested an all- intraday…
The Indian rupee closed at its weakest level on record on Wednesday, amid risk aversion due to the US-Greenland dispute, unwinding of yen carry trades in the emerging markets, and a broad selloff from local stocks and bonds.The currency, which was Asia’s worst performing in 2025, weakened to an all-time intraday low of 91.74/$1, and later closed at an all-time low of 91.695/$1 on Wednesday.The rupee had closed at 90.97/$1 on the previous day. The central bank, which usually sells dollars to curb excess weakness in the rupee, stayed away and did not intervene, traders said.AgenciesThe rupee has already lost…
Since both the New Zealand Dollar (NZD) and the Australian Dollar (AUD) have links to commodities, historically they have been viewed as ‘risky’ currencies which tend to rally when growth prospects are strong and vice-versa, Rabobank’s FX analyst Jane Foley reports. Commodity exports cushion downside risk for AUD and NZD”The evolving and complex geopolitical backdrop has the potential to skew that relationship. In addition to its gold exports, Australia is a growing source for rare earths and both countries benefitted from solid food exports in 2025 – the latter potentially being subject to more inelastic demand than other commodities (dependent…
The rupee plunged to a record low and suffered its biggest single-session fall in two months on Wednesday, as a global bond rout and U.S. threats to acquire Greenland kept investors on edge and amplified concerns over outflows.The rupee fell for the sixth straight session, slipping to an all-time low of 91.7425 against the dollar. It closed down 0.8% at 91.6950 against 90.9750 previous close.The fall was exacerbated as the Reserve Bank of India stayed away from the market, and did not provide dollar supply, traders said.The rupee, the worst performing Asian on the day, is down 2% so far…
The Indian Rupee (INR) plunges to record lows against the US Dollar (USD) on Wednesday. The USD/INR rallies to near 92.00 as the Indian Rupee faces intense selling pressure due to consistent outflow of foreign funds from the Indian stock market and the risk-off market mood amid tensions between the United States (US) and the European Union (EU) over Greenland.Foreign Institutional Investors (FIIs) are consistently dumping their stake in the Indian stock market due to the absence of a trade deal announcement between the US and India, keeping demand for US Dollars sustained among Indian importers. So far in January,…
2025 was the year of the worst underperformance for the Rupee relative to the Asia Dollar index since 2013. The 40 currency trade-weighted REER is now at 97.5 and threatening to move towards levels not seen since 2014.Therefore, there are 2 aspects to consider here: Expectations for overall Dollar movement and idiosyncratic considerations for the RupeeThere are complex geopolitical and macroeconomic considerations at play in 2026, which will determine the way the overall Dollar behaves.1) The US labour market is weakening, but inflation is still high. The market is pricing 2 cuts of 25bps each by the Fed till the…
The EUR/JPY cross loses ground near 185.25 during the early European session on Tuesday. The Japanese Yen (JPY) edges higher against the Euro (EUR) as traders continue to pile into safe-haven currencies amid US President Donald Trump’s renewed tariff threats against European allies over Greenland. Meanwhile, Japan’s Prime Minister Sanae Takaichi on Monday called snap elections for February 8 and pledged a wave of measures to loosen fiscal policy. Takaichi’s plans to cut taxes and boost spending are raising doubts about the financial health of one of the world’s most indebted governments. This, in turn, could undermine the JPY and create a…
The rupee on Wednesday tested a new low of 91.57 per US dollar in intraday trade so far, amid global stock and financial markets getting roiled due to US President Trump’s plan to acquire Greenland, an autonomous territory of Denmark. Trump’s plan has raised the hackles of the European Union.The Indian unit opened 8 paise weaker at 91.05 per USD against the previous close of 90.97, according to the CCIL website.Amit Pabari, MD, CR Forex Advisors, observed that while in theory, a softer dollar should help emerging market currencies, in reality, uncertainty changes the rules. When fear rises, money looks…
The Indian rupee is at risk of opening at a lifetime low on Wednesday, with risk aversion triggered by the Greenland dispute compounding persistent pressures and leaving the currency reliant on the central bank’s support.The 1-month non-deliverable forward indicated the rupee is set to open in the 91.04–91.10 range against the dollar, after settling at 90.9750 on Tuesday. The currency’s all-time low is 91.0750, set in mid-December.Unnerved by US President Donald Trump’s threats over Greenland and the potential for a US–Europe trade dispute linked to the issue, investors swung into risk-off mode, dumped the dollar, and bought into safe-haven assets.The…