Us Dollar

Geopolitical risks and monetary policy

Central banks need to factor in geopolitical risks before they materialise, not treat them as a sideshow

Rupee slips 4 paise to 96.39 against US dollar during early trade

The rupee declined 4 paise to 96.39 against the US dollar in early trade on Tuesday over a rise in crude oil prices and sustained FII outflows. However, positive sentiments in the domestic equity markets and a weaker dollar index cushioned the local unit against further decline, forex traders said. At the interbank foreign exchange, the rupee opened at 96.29 but fell to 96.39, down 4 paise from its previous close. The rupee depreciated 10 paise to close at 96.35 against the US dollar on Monday. "The Reserve Bank has been protecting the rupee from its fall at 96.33 but the demand of dollar from FPIs and oil companies has not come down despite oil falling to USD 100.63 per barrel and dollar index to 102.12," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. The Reserve Bank's Monetary Policy Committee began its three-day meeting on Monday and is likely to raise rates by 25 basis points, aligning with the central banks' hawkish stance a

Bullion faces choppy week as dollar, US-Iran risks test sentiment: Analysts

Gold and silver are set for another bout of turbulence in the coming week, as movement in the US dollar and unresolved US-Iran tensions cloud the outlook, analysts said. On the domestic front, investors will watch the Reserve Bank of India's monetary policy decision on Wednesday, with a 25 basis points rate hike expected. Services PMI data from major economies, US trade figures and mid-month consumer sentiment data due later in the week will also provide cues to bullion prices. The unresolved US-Iran situation will add another layer of uncertainty for precious metals, they added. On the Multi Commodity Exchange (MCX), gold futures for December delivery declined Rs 2,887, or 2 per cent, during the holiday-shortened week to end at Rs 1.5 lakh per 10 grams, while silver dropped Rs 8,819, or nearly 4 per cent, to Rs 2.25 lakh per kilogram. "MCX gold remained under pressure last week, declining around 2 per cent as a stronger US dollar and rising bond yields intensified profit-booking .

Bullion may stay volatile as US data, W Asia tensions take focus: Analysts

Gold and silver are expected to face another choppy spell, with US data, West Asia tensions and their impact on crude prices set to test bullion sentiment during a holiday-shortened week, analysts said. Market participants will shift their focus to the US data calendar, with consumer confidence, GDP and PCE inflation readings, alongside Eurozone inflation. Additionally, manufacturing PMIs, speeches from Federal Reserve officials and the US non-farm payrolls report will provide further cues for bullion sentiment, they added. Geopolitical uncertainty will continue to play a role, particularly the US-Iran standoff, after US President Donald Trump said that he rejected Tehran's proposal to reopen the Strait of Hormuz within a week and resume nuclear talks in exchange for lifting the naval blockade. Commodity markets would remain closed on Friday for Mahatma Gandhi Jayanti. "The broader outlook remains cautious with volatility likely to stay elevated as the market will closely focus on

Rupee declines to one-week low as oil rally fans global rate hike worries

Dollar sales by state-run banks, likely ‌on behalf of the Reserve Bank of India, limited losses and kept the rupee above 96 per dollar.

Rupee extends gains for fifth straight session tracking fall in crude oil

The rupee settled at 95.59 per dollar as falling crude prices and likely dollar sales by state-run banks supported the currency; the 10-year bond yield fell 4 bps

Rupee settles 2 paise up at 95.89 against dollar after breaching 96 level

The rupee staged a spirited recovery after slipping below the 96 level intraday and settled higher by 2 paise at 95.89 against the US dollar on Thursday on heavy dollar selling by banks, snapping its seven-day falling streak. The local currency breached the 96 level to hit a low of 96.10 to a dollar in day trade after a 25 basis point rate hike by the US Federal Reserve, sustained foreign fund outflows from stock markets and high crude oil rates. Forex traders said that dollar selling by banks on behalf of the RBI helped the local unit recoup losses and hit a high of 95.78 to a dollar. A slight correction in the dollar index and crude oil prices also supported investor sentiment despite global geopolitical volatility, they added. At the interbank foreign exchange market, the rupee opened higher at 95.88 but soon reversed gains and hit the intraday low of 96.10, breaching the 96 level for the first time since July 24. The unit recovered during the session and touched the high of 95.

Rupee crosses 96 mark vs US dollar after Fed's first rate hike since 2023

The Fed raised interest rates by 25 basis points on ​Wednesday, its first increase since 2023, with officials expecting one more increase ​this year.

Rupee falls 0.42% to 95.96, posts sharpest decline since July 14

The domestic currency extended its losing streak to five sessions as rising crude oil prices, global bond yields and strong dollar demand weighed on the rupee

Dollar holds near two-week high as bets rise on September Fed rate hike

The dollar held firm near a two-week high after Kevin Warsh's hawkish remarks lifted expectations of a September rate hike, while the yen slipped below 160 per dollar

Rupee rises 7 paise to 95.64 against US dollar during early trade

The rupee traded in a narrow range and rose 7 paise to 95.64 against the American currency in early trade on Monday, supported by a softer US dollar, but simmering geopolitical tensions kept it from making strong gains. Forex traders said the Dollar Index has weakened, but elevated Brent crude and persistent importer demand limited the rupee's gains. Moreover, investors are treading a cautious path as Washington is set to unveil a fresh wave of sanctions on Iran, targeting its oil trade, banking network and shipping routes. At the interbank foreign exchange, the rupee opened at 95.68, then rose to 95.64, higher by 7 paise from its previous close. On Friday, the rupee settled higher by just 3 paise at 95.71 against the US dollar. "The worry for markets isn't just Iran, it's who else gets caught in the crossfire, since several major economies continue to engage with Iranian trade in some form. Until the details are out this evening, oil and currency markets are likely to stay cautio

Rupee rises 11 paise to settle at 95.88 against US dollar amid oil dip

The rupee stayed on upward track for the third straight session and ended 11 paise higher at 95.88 (provisional) against the US dollar on Tuesday, supported by lower crude oil prices amid signals of easing West Asia crisis. According to forex traders, the sustained outflow of foreign capital amid selling pressure in domestic equity markets, as well as an elevated dollar index ahead of the US Federal Reserve's policy decision, capped gains for the local currency. At the interbank foreign exchange, the rupee opened at 95.75 and touched the intraday high of 95.63 before ending the session at 95.88 (provisional) against the greenback, up 11 paise from its previous closing level. On Monday, the rupee appreciated sharply by 54 paise to close at 95.99 against the US dollar, after rising 20 paise in the preceding session on Friday. Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said the rupee strengthened on the halting of strikes between the US and Iran. "Traders may take cues

Dollar slips as Iran truce hopes lift risk appetite before Fed meeting

Against the ​yen, the U.S. dollar was down 0.1% at 163.645 yen, on course for its sharpest daily decline ​since July 10

Rupee dips to 96.57/$, a 2-month low as crude oil surge weighs on sentiment

Escalating tensions in West Asia lifted crude oil prices to a six-week high, while likely RBI intervention through state-owned banks capped losses in the rupee

Rupee hits 1-month low as West Asia tensions, oil prices weigh on sentiment

The rupee fell to a one-month low against the US dollar as rising crude oil prices and renewed tensions in West Asia weighed on sentiment, with RBI intervention limiting losses

Gold can fall up to 16% to $3400/oz, say analysts; should you buy the dip?

Already in the bear territory after receding 27% from its record high level, analysts foresee further decline in gold prices of up to 16% to $3400-3500 levels.

Rupee rises 15 paise to 95.32 against US dollar during early trade

The rupee rose 15 paise to 95.32 against US dollar in early trade on Friday as the greenback weakened and oil prices eased despite intensifying tensions in West Asia. FII outflows and uncertainties over fresh tensions in West Asia weighed on the local unit while a strong start to the day's trade at the domestic equity markets provided support, according to forex traders. The US launched new airstrikes against Iran on early Thursday, and Tehran responded by targeting US-allied West Asian countries in an exchange of fire that threatened an interim deal intended to help end the war. Back-and-forth attacks, including a day earlier, have repeatedly threatened the ceasefire. But Thursday's appeared bigger all around, with sirens sounding at least three times in Bahrain, home to the US Navy's 5th Fleet headquarters, and missiles targeting Kuwait and Qatar. At the interbank foreign exchange market, the rupee opened at 95.27 against the greenback before slipping to 95.32, up 15 paise from i

Rupee tumbles to one-month low; crude spike pushes bond yields higher

The rupee recorded its sharpest one-day fall in a month on rising crude oil prices and renewed West Asia tensions, while the benchmark 10-year government bond yield climbed

Amazon seeks to raise at least $25 billion from US dollar bond sale

The size of the offering could increase depending on investor demand, according to people familiar with the matter, who cautioned that no final decision has been made

Sebi weighs shift to rupee-denominated fees from US dollars for FPIs, FVCIs

Other operational changes to common application form, custodian fee also in discussion