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ING analysts Warren Patterson and Ewa Manthey highlight that Oil is trading on expectations of resumed Persian Gulf flows, which they see as overly optimistic given stalled US-Iran talks. They stress that falling inventories in Europe and Singapore, combined with stronger third-quarter demand, could intensify market tightness and require higher prices to trigger demand destruction, particularly via refined products.Tightening stocks raise price risks”While there are few signs of progress in US-Iran talks, the oil market continues to trade on expectations of an imminent deal that would resume flows through the Strait of Hormuz. This seems overly optimistic as Hezbollah rejects…
The rupee advanced on Friday to post its best session in two months, after the central bank held its policy rate and announced a host of measures to attract dollar inflows over the medium term.The rupee gained 0.9% to end at 94.9450 per dollar, its biggest gain since April 2. Forward premiums, the cost of hedging FX exposure, plunged to 2.67 rupees, the lowest this financial year, down from 2.85 rupees.While holding its policy rate steady, the Reserve Bank of India rolled out several initiatives to attract U.S. dollar inflows, aiming to bolster India’s balance of payments position in a…
The rupee appreciated 81 paise to close at 94.93 (provisional) against the US dollar on Friday after the Reserve Bank announced measures to support foreign capital inflows and strengthen forex liquidity.Forex traders said the announcements in the RBI policy boosted investor sentiments after the apex bank asserted that the country’s forex reserves provide a sufficient buffer against external shocks.The Reserve Bank on Friday expectedly kept interest rates unchanged for the second time in a row as it weighed the impact of rising energy prices and supply disruptions caused by the West Asia crisis.At the interbank foreign exchange market, the rupee…
Deutsche Bank analysts describe a mixed backdrop for US equities, with the S&P 500 rebounding on broad participation even as chipmakers lag after Broadcom’s disappointing AI guidance. The index is marginally higher on the week and eyeing a rare tenth straight weekly gain, though futures are softer. Lower Oil and yields have supported risk sentiment despite weakness in Bitcoin.Broad rally offsets semiconductor drag”Meanwhile, equities recovered, including the S&P 500 (+0.41%), although it wasn’t all good news for risk assets yesterday, with Bitcoin (-2.06%) falling to its lowest level since early February, at $63,575.””Ahead of that, US equities also regained momentum…
The rupee appreciated 50 paise to 95.24 against the US dollar on Friday after the RBI liberalised norms for FPI investment in government securities. Forex traders said the announcements in the RBI policy boosted investor sentiments after the apex bank asserted that the country’s forex reserves provide sufficient buffer against external shocks. At the interbank foreign exchange market, the rupee opened at 95.72, then touched 95.24 in intraday trade, registering a rise of 50 paise from its previous close.On Thursday, the rupee rose 2 paise to settle at 95.74 against the US dollar. The Reserve Bank on Friday expectedly kept…
The Indian rupee rose on Friday, defying subdued Asian cues, with caution prevailing ahead of a policy outcome that is expected to steer the currency’s near-term outlook.The rupee opened marginally higher at 95.7125 and rose to an intraday high of 95.6475, after settling at 95.7850 in the previous session.The move higher at the open is largely flow-driven, possibly reflecting some position adjustment, a currency trader at a bank said.“Overall, there will be caution around taking large positions. I would say the balance of risks is balanced, with the potential for a big move depending on how the policy turns out,”…
EUR/JPY moves little after posting modest gains in the previous day, trading around 185.80 during the Asian hours on Friday. The EUR/JPY cross is holding a constructive bullish bias as it remains above both the nine-day and 50-day Exponential Moving Averages (EMAs). The alignment of the shorter nine-day EMA above the 50-day EMA hints at a still-supportive trend backdrop.The 14-day Relative Strength Index (RSI) near 56 stays in positive territory without entering overbought conditions, suggesting upside momentum is intact but not overstretched.The technical analysis of the daily chart suggests the currency cross remains near the upper boundary of the descending…
The Japanese yen is testing the 160 barrier on Friday, prompting pushback from Japanese officials, while the U.S. dollar is on track for a weekly gain as Gulf tensions fuel safe-haven flows. The yen weakened to the critical 160-per-dollar mark briefly in early trades, hitting the level for the third straight session despite verbal warnings from authorities. The 160 level is widely seen in markets as a line in the sand for potential official intervention. Japan is ready to respond appropriately at any time on foreign exchange and reserves the right to take “decisive action” against excessive volatility, Finance Minister…
Mumbai: The Indian currency and the benchmark bond yield traded in a narrow range Thursday, in anticipation of Friday’s decision on policy rates and likely measures to support the currency.The rupee closed at 95.78, versus its previous close of 95.70. The 10- year bond yielded 7%, nearly unchanged from its previous close of 7.01%.The currency traded in a narrow range from 95.59 and 95.80 on the day, and intervention by the Reserve Bank of India (RBI) helped contain the depreciation past 95.80 levels, traders said.Intervention by the RBI has been stronger after the rupee hit its record low of 96.96…
US President Donald Trump said that he would be “honored” to meet Iranian Supreme Leader Ayatollah Mojtaba Khamenei if a deal is reached to end the U.S.-Iran war, CNBC reported on Thursday.“If we make a deal, it’s possible that I would meet,” said Trump. “I’d be okay with that,” he added.Meanwhile, Israeli defence minister Israel Katz said on Thursday that Israel will continue operations in Lebanon despite a ceasefire, and Lebanese residents forced to flee will not be able to return.Israeli forces and Hezbollah fighters launched strikes just hours after Israel and Lebanon agreed to implement a ceasefire, hinging on…