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Hindustan Times
2 days ago
- Business
- Hindustan Times
Middle East tensions, importer dollar bids keep rupee on backfoot
MUMBAI -The Indian rupee declined on Thursday to hover around its weakest level in over two months, as persistent worries about escalation in the Iran-Israel air war kept oil prices elevated and dented risk sentiment. The rupee was quoted at 86.6875, as of 12:20 p.m. IST, down 0.2% from its close of 86.4475 on Wednesday. Earlier in the session, it touched 86.71 - its lowest level since April 9. The dollar index was up about 0.2% at 99 and Asian currencies declined, as the possible entry of the United States into the week-old Israel-Iran air war kept financial markets on edge. The Israeli military said on Thursday it had targeted the nuclear reactor in the area of Arak in Iran overnight and what it called a nuclear weapons development site in the area of Natanz. The geopolitical tensions have sparked a jump in oil prices, with Brent crude futures last at $76.8 per barrel, up nearly 19% on the month so far. Traders also pointed to dollar demand from importers weighing on the rupee on the day. The rupee could decline towards 86.70-86.80 if dollar strength and elevated crude oil prices persist, said Amit Pabari, managing director at FX advisory firm CR Forex. Meanwhile, the U.S. Federal Reserve expectedly kept policy rates unchanged on Wednesday. Fed Chair Jerome Powell said that he expects "meaningful" inflation ahead as consumers pay more for goods due to the Trump administration's planned import tariffs.
Business Recorder
4 days ago
- Business
- Business Recorder
Indian rupee ends nearly flat following choppy trading; forward premiums dip
MUMBAI: The Indian rupee experienced choppy trading before ending nearly flat on Monday as a broad based decline in the U.S. dollar blunted risk aversion spurred by the escalation in the Iran-Israel conflict. The rupee closed at 86.0650 against the U.S. dollar, nearly unchanged from its close of 86.08 in the previous session. The South Asian currency hovered in a 85.9525-86.23 range on the day with traders pointing to exporter hedging, oil prices and broad-based dollar weakness among the cues that impacted its trajectory. While 'traders were biased towards buying dips (on USD/INR), the price action was somewhat confusing, leading to cutting of speculative positions,' a trader at a state-run bank said. Meanwhile, the dollar-rupee forward premiums eased. The 1-year implied yield was down 5 basis points at 1.83%, weighed by an uptick in near-tenor U.S. Treasury yields and exporter hedging. The dollar index was down 0.3% at 97.9 and Asian currencies were trading mixed. The offshore Chinese yuan rose 0.1% while the Thai baht declined by about 0.3%. India's equity benchmarks snap two-day losing streak as IT and financials rise Investors are keeping a close eye on signs that the ongoing Iran-Israel conflict may escalate into a broader regional conflict. 'All eyes are now on the trio driving market sentiment— war, trade wars, and central bank moves,' said Amit Pabari, managing director at FX advisory firm CR Forex. Pabari expects the rupee to remain volatile in the near-term and reckons that an intensification of hostilities in the Middle East could push the currency towards 86.50-86.80. Meanwhile, India's merchandise trade deficit narrowed to $21.88 billion in May, according to government data released on Monday. India and the U.S. aim to sign an interim trade deal before July 9, an Indian trade ministry official said on Monday.
Reuters
4 days ago
- Business
- Reuters
Rupee ends nearly flat following choppy trading; forward premiums dip
MUMBAI, June 16 (Reuters) - The Indian rupee experienced choppy trading before ending nearly flat on Monday as a broad based decline in the U.S. dollar blunted risk aversion spurred by the escalation in the Iran-Israel conflict. The rupee closed at 86.0650 against the U.S. dollar, nearly unchanged from its close of 86.08 in the previous session. The South Asian currency hovered in a 85.9525-86.23 range on the day with traders pointing to exporter hedging, oil prices and broad-based dollar weakness among the cues that impacted its trajectory. While "traders were biased towards buying dips (on USD/INR), the price action was somewhat confusing, leading to cutting of speculative positions," a trader at a state-run bank said. Meanwhile, the dollar-rupee forward premiums eased. The 1-year implied yield was down 5 basis points at 1.83%, weighed by an uptick in near-tenor U.S. Treasury yields and exporter hedging. The dollar index was down 0.3% at 97.9 and Asian currencies were trading mixed. The offshore Chinese yuan rose 0.1% while the Thai baht declined by about 0.3%. Investors are keeping a close eye on signs that the ongoing Iran-Israel conflict may escalate into a broader regional conflict. "All eyes are now on the trio driving market sentiment— war, trade wars, and central bank moves," said Amit Pabari, managing director at FX advisory firm CR Forex. Pabari expects the rupee to remain volatile in the near-term and reckons that an intensification of hostilities in the Middle East could push the currency towards 86.50-86.80. Meanwhile, India's merchandise trade deficit (INTRD=ECI), opens new tab narrowed to $21.88 billion in May, according to government data released on Monday. India and the U.S. aim to sign an interim trade deal before July 9, an Indian trade ministry official said on Monday.
Economic Times
4 days ago
- Business
- Economic Times
Rupee ends nearly flat following choppy trading; forward premiums dip
The Indian rupee experienced choppy trading before ending nearly flat on Monday as a broad based decline in the U.S. dollar blunted risk aversion spurred by the escalation in the Iran-Israel conflict. ADVERTISEMENT The rupee closed at 86.0650 against the U.S. dollar, nearly unchanged from its close of 86.08 in the previous session. The South Asian currency hovered in a 85.9525-86.23 range on the day with traders pointing to exporter hedging, oil prices and broad-based dollar weakness among the cues that impacted its trajectory. While "traders were biased towards buying dips (on USD/INR), the price action was somewhat confusing, leading to cutting of speculative positions," a trader at a state-run bank said. Meanwhile, the dollar-rupee forward premiums eased. The 1-year implied yield was down 5 basis points at 1.83%, weighed by an uptick in near-tenor U.S. Treasury yields and exporter hedging. The dollar index was down 0.3% at 97.9 and Asian currencies were trading mixed. The offshore Chinese yuan rose 0.1% while the Thai baht declined by about 0.3%. ADVERTISEMENT Investors are keeping a close eye on signs that the ongoing Iran-Israel conflict may escalate into a broader regional conflict. "All eyes are now on the trio driving market sentiment- war, trade wars, and central bank moves," said Amit Pabari, managing director at FX advisory firm CR Forex. ADVERTISEMENT Pabari expects the rupee to remain volatile in the near-term and reckons that an intensification of hostilities in the Middle East could push the currency towards 86.50-86.80. Meanwhile, India's merchandise trade deficit narrowed to $21.88 billion in May, according to government data released on Monday. ADVERTISEMENT India and the U.S. aim to sign an interim trade deal before July 9, an Indian trade ministry official said on Monday. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
5 days ago
- Business
- Time of India
Rupee ends nearly flat following choppy trading; forward premiums dip
The Indian rupee experienced choppy trading before ending nearly flat on Monday as a broad based decline in the U.S. dollar blunted risk aversion spurred by the escalation in the Iran-Israel conflict . The rupee closed at 86.0650 against the U.S. dollar, nearly unchanged from its close of 86.08 in the previous session. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Many Are Watching Tariffs - Few Are Watching What Nvidia Just Launched Seeking Alpha Read Now Undo The South Asian currency hovered in a 85.9525-86.23 range on the day with traders pointing to exporter hedging, oil prices and broad-based dollar weakness among the cues that impacted its trajectory. While "traders were biased towards buying dips (on USD/INR ), the price action was somewhat confusing, leading to cutting of speculative positions," a trader at a state-run bank said. Meanwhile, the dollar-rupee forward premiums eased. The 1-year implied yield was down 5 basis points at 1.83%, weighed by an uptick in near-tenor U.S. Treasury yields and exporter hedging. Live Events The dollar index was down 0.3% at 97.9 and Asian currencies were trading mixed. The offshore Chinese yuan rose 0.1% while the Thai baht declined by about 0.3%. Investors are keeping a close eye on signs that the ongoing Iran-Israel conflict may escalate into a broader regional conflict. "All eyes are now on the trio driving market sentiment- war, trade wars, and central bank moves ," said Amit Pabari, managing director at FX advisory firm CR Forex . Pabari expects the rupee to remain volatile in the near-term and reckons that an intensification of hostilities in the Middle East could push the currency towards 86.50-86.80. Meanwhile, India's merchandise trade deficit narrowed to $21.88 billion in May, according to government data released on Monday. India and the U.S. aim to sign an interim trade deal before July 9, an Indian trade ministry official said on Monday.
