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EUR/USD edges higher on Thursday as signs of easing tensions in the Middle East reduce safe-haven demand for the US Dollar (USD). At the time of writing, the pair trades around 1.1625, up 0.25% on the day.Market sentiment improved after the United States announced a ceasefire agreement between Israel and Lebanon, one of Iran’s key demands to end the war. The development raised hopes that US-Iran peace talks could pick up pace after appearing to stall in recent days.The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is down 0.20% on the…
ING’s Chris Turner notes USD/BRL may move toward 5.14 as the stronger US Dollar and local political and trade risks weigh on the Brazilian Real (BRL). He argues BRL is catching up with domestic rate markets and expects dips to find support given Brazil’s high yields and energy exporter status.Brazilian Real catches up with rates”The stronger US rate/dollar environment is starting to prove a headwind for some of the more popular emerging market plays, including the Brazilian real carry trade.””Beyond the strong dollar environment, the local story sees President Lula’s approval ratings continue to widen over Flavio Bolsonaro and Brazil…
The Indian rupee dipped on Thursday, extending a two-session decline, ahead of Friday’s all-important Reserve Bank of India monetary policy review, where traders are widely anticipating steps to support the currency.The rupee closed at 95.7850 per US dollar, from 95.7050 on Wednesday. The currency meandered in a narrow range through the session, pressured by weaker Asian peers and importer hedging after a central bank intervention-led relief rally.The rupee has recovered ground after the Reserve Bank of India’s intervention in spot and forward markets helped it rebound from a record low of 96.96 hit around mid-May.The RBI’s activity has provided breathing…
The Indian rupee dipped on Thursday, extending a two-session decline, ahead of Friday’s all-important Reserve Bank of India monetary policy review, where traders are widely anticipating steps to support the currency. The rupee closed at 95.7850 per U.S. dollar, from 95.7050 on Wednesday. The currency meandered in a narrow range through the session, pressured by weaker Asian peers and importer hedging after a central bank intervention-led relief rally. The rupee has recovered ground after the Reserve Bank of India’s intervention in spot and forward markets helped it rebound from a record low of 96.96 hit around mid-May. The RBI’s activity…
The dollar traded near a two-month high on Thursday as renewed Gulf hostilities sapped risk appetite, while traders were alert to the possibility of intervention as the Japanese yen hovered near the key 160 level.Iranian attacks on Kuwait damaged its airport and injured dozens on Wednesday, while the U.S. military carried out strikes near the Strait of Hormuz, complicating prospects for a diplomatic end to the war.Although Israel and Lebanon agreed to a ceasefire, a broader peace deal remained elusive, keeping oil prices elevated and supporting demand for the safe-haven dollar.The euro rose 0.1% to $1.161 . A Reuters poll…
NZD/USD extends its losses for the fourth successive day, trading around 0.5860 during the European hours on Thursday. The technical analysis of the daily chart shows the spot price moving sideways within a rectangle pattern, indicating a period of market consolidation and indecision.The NZD/USD pair is keeping a mild bearish bias as it holds beneath the short-term and medium-term Exponential Moving Averages (EMAs), clustering just above the spot as immediate overhead supply, suggesting rallies are likely to meet selling interest while price trades below this band.Momentum is soft, with the 14-day Relative Strength Index (14) hovering just under the 50…
USD/CHF halts its three-day winning streak, trading around 0.7910 during the Asian hours on Thursday. The pair depreciates as the US Dollar (USD) loses ground on easing risk aversion following the news that Israel and Lebanon on Wednesday agreed to renew a ceasefire. However, it would require a “complete cessation” of fire by Iran-backed Hezbollah. The agreement was announced in a joint statement after US-led talks in Washington.The Israel and Lebanon do not have formal diplomatic relations, though also agreed to establish several “pilot security zones” in which the Lebanese armed forces “will take exclusive control of the territory to…
The Indian rupee is seen opening slightly weaker on Thursday, pressured by equity outflows and soft Asian cues, while expectation around steps to support the currency may offer relief.The rupee is expected to open in 95.74-95.78 range, per traders, having settled at 95.7050 on Wednesday. After staging a brief relief rally to the 94.70 level, the currency has come under renewed pressure.A pickup in equity outflows and fading hopes of a U.S.-Iran detente have put the rupee back on the back foot. A prolonged war in the Middle East is a key risk for net energy importer India.Foreign investors pulled…
The dollar clung to its recent strength near a two-month high on Thursday as fresh Gulf hostilities sent oil prices higher and sapped risk appetite, while the Japanese yen hovered near the key 160 level that kept traders on intervention alert. Iranian attacks on Kuwait damaged its airport and injured dozens on Wednesday while the U.S. military carried out strikes near the Strait of Hormuz, straining a shaky ceasefire and dimming hopes for a diplomatic halt to the war. The euro stood at $1.1604, and the British pound traded at $1.3424, both largely flat so far in Asia.The risk-sensitive Australian…
Mumbai: The Indian rupee fell half a percentage point against the US dollar on Wednesday as a fusillade of Iranian missiles targeted Kuwait and Bahrain, indicating the fragility of the truce in the Gulf region and pushing currency bears to buy into the greenback’s promise of safety. The rupee declined to 95.70, pressured by higher oil prices, versus its previous close of 95.27. Brent futures gained $2.3, or 2.4%, to $98.30 as tensions erupted in West Asia and peace talks between Tehran and Washington showed little progress, according to Reuters.The rupee traded between 95.80 and 95.44 on Tuesday. “The currency…