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The rupee stayed firm and gained 2 paise to 91.62 against the US dollar on Friday after the US announced a 30-day waiver for Indian refiners to purchase Russian oil, easing pressure on the global energy flow amid the ongoing war in West Asia.Forex traders said that the negative domestic equity markets and withdrawal of foreign funds resisted the rupee’s upward move despite a retreating American currency.Amid the escalating war involving the US, Israel and Iran, the American administration has announced a temporary 30-day waiver to allow Indian refiners to purchase Russian oil.Treasury Secretary Scott Bessent on Thursday said that…
Gold price (XAU/USD) recovers its recent losses from the previous session on Friday. The yellow metal advances as the broader precious metals market rebounds on safe-haven demand. However, the yellow metal is on track for its first weekly decline in five weeks as escalating Middle East tensions push oil prices higher, fueling inflation concerns and reducing bets on Federal Reserve rate cuts.The dollar-denominated Gold faces challenges as the US Dollar (USD) strengthens, as Federal Reserve (Fed) officials continue to consider the possibility of further rate hikes if inflation remains above target. It is worth noting that a weaker US Dollar…
US Interior Secretary Doug Burgum said that the US President Donald Trump administration is weighing a range of options for addressing the spike in oil and gasoline prices amid the war in Iran, Bloomberg reported on Friday.Trump huddled with Burgum and other top advisers to consider a range of possibilities Tuesday before announcing plans to provide insurance guarantees and naval escorts to ensure safe passage for oil tankers and other vessels through the Strait of Hormuz.Other options include releasing crude from the country’s emergency oil reserve, potentially in coordination with other nations to maximize effect. However, administration representatives have not…
Nordea’s Chief Analyst Jan von Gerich expects the ECB to stay on hold for now while closely monitoring how the Middle East conflict affects Euro-area growth and inflation. He argues that higher and prolonged energy prices, tight labour markets and sticky services inflation raise upside risks to ECB rates. Nordea still forecasts the first rate hike in the second half of next year, but sees rising risk of an earlier move.ECB vigilance as energy risks build”The ECB will remain on hold for now, but it will carefully assess, what consequences the conflict in the Middle East will have on the…
Rupee made a smart recovery on Thursday after tanking to close at a record low the previous day on heavy RBI intervention in the forex market.Rupee closed 55 paise stronger at 91.60 per US Dollar against previous close 92.15. The Indian currency had closed at an all-time low on Wednesday amid concerns over the negative impact that the spike in global crude oil prices could have on India’s current account balance.Despite the Rupee strengthening against the Dollar, it continues to be remain under pressure due to ripple impact from the West Asia war. If the war lingers, oil prices could…
The Indian rupee logged its biggest one-day gain in a month on Thursday after the Reserve Bank of India stepped in aggressively to shore up the currency, with bankers expecting the central bank to stay on guard as geopolitical risks persist.The rupee touched a peak of 91.4125 in before ending the day at 91.60 per dollar, up 0.6% on the day.India’s benchmark indexes rose 1% and most Asian stocks were also higher while currencies traded mixed.Traders pointed to aggressive dollar sales by state-run banks, which lifted the rupee after it fell to a record low of 92.3025 on Wednesday.Choppy moves…
Commerzbank’s Michael Pfister revisits international trade theory to explain why higher Oil prices and the US status as a net Oil exporter are supportive for the Dollar against the Euro. He argues that improved US terms of trade, slower price adjustment and central bank inflation targets mean the nominal EUR/USD exchange rate bears most of the adjustment, with scope for a rebound if Oil prices fall.Oil shock and Dollar trade advantage”It is likely that there will be agreement on the fact that the US is now a net oil exporter, while the euro area has to import oil on a…
The Indian rupee breached the 92/$1 mark for the first time on Wednesday to a record low, mirroring the steepest weekly climb in the fear gauge for equity assets since the initial Covid shutdowns six years ago, as the West Asian war disrupted supplies of oil and industrial gases and compelled investors to buy safe-haven dollar assets.The rupee fell 68 paise from Monday’s closing level of 91.47 to a dollar – at 92.15 – and its losses would have been even steeper in the absence of evident, late-afternoon interventions from the central bank, traders said. “Selling of dollars by the…
Rupee recovered from its lowest level and gained 48 paise to trade at 91.57 against the US dollar in early trade on Thursday, tracking positive momentum in domestic equity markets. However, higher crude oil prices, a strengthening American currency and intense selling of Indian equities by foreign investors amid escalating tension in the Middle East kept the local unit under pressure, forex analysts said. At the interbank foreign exchange market, the rupee opened at 92.16 and touched a high of 91.30 before trading at 91.57 against the American currency, registering a gain of 48 paise from its previous closing level.The…
The Reserve Bank of Indian likely stepped into the foreign exchange market aggressively on Thursday, three traders told Reuters, likely aimed at shoring up the rupee, which fell to a record low in the previous session.The rupee was on track to open around the 92.10 per dollar level on Thursday, but minutes before the local spot market opened at 9:00 a.m. IST, it rallied sharply on the interbank order matching system to about 91.40 per dollar. Traders cited dollar sales from at least three state-run banks, most likely on behalf of the RBI. Source