Latest news with #MrigankDhaniwala
Mint
13-06-2025
- Business
- Mint
Oil spike, risk off on Middle East flare up may drag rupee past 86/USD
MUMBAI (Reuters) -The Indian rupee is expected to slip past 86 to the U.S. dollar at the open on Friday, hit by surging oil prices and sliding risk assets after Israel attacked targets in Iran. The 1-month non-deliverable forward indicated a open in the 86.02 to 86.10 range, versus 85.60 in the previous session. Brent crude soared 11%, U.S. equity futures plunged 1.8% and safe-haven demand boosted the struggling dollar. "The real concern for the rupee isn't just today's oil spike - it's the risk of a sustained rally if Middle East tensions deepen," a currency trader at a Mumbai-based bank said. According to the trader, the 86.00 to 86.10 zone is a major support for the rupee, though he warned that defending it "will be challenging". Israel said it targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday, warning that it marked the beginning of a sustained campaign aimed at preventing Tehran from building an atomic weapon. Another report suggested that explosions were heard northeast of Iran's capital Tehran. The strikes by Israel came amid mounting tensions over U.S. efforts to halt Iran's production of atomic bomb materials. "Markets will carefully assess the risk of escalation," DBS Research said in a note. Safe-haven demand lifted the Japanese yen and the Swiss franc and helped the dollar index recover to the 98 handle. The 10-year U.S. yield dropped despite the jump in oil. Brent crude is potentially headed for its biggest one-day rise in over three years. Oil is a major component of India's import bill. A $10 barrel increase in crude can widen the current account deficit by up to 0.4% of GDP, economists estimate, and can add up to 35 basis points to headline consumer inflation. ** One-month non-deliverable rupee forward at 86.12; onshore one-month forward premium at 8.75 paise ** Dollar index up at 98.05 ** Brent crude futures up 11.3% at $77.2 per barrel ** Ten-year U.S. note yield at 4.33% ** As per NSDL data, foreign investors sold a net $15.4 mln worth of Indian shares on Jun. 11 ** NSDL data shows foreign investors sold a net $296 mln worth of Indian bonds on Jun. 11 (Reporting by Nimesh Vora; Editing by Mrigank Dhaniwala)
Mint
12-06-2025
- Business
- Mint
Rupee ends a tad lower, hurt by corporate dollar bids, outflows
MUMBAI, June 12 (Reuters) - The Indian rupee weakened slightly on Thursday, pressured by corporate dollar demand and likely portfolio outflows even as broad-based dollar weakness boosted its regional peers. The rupee closed at 85.60 against the U.S. dollar, down 0.1% from its close at 85.51 in the previous session. Asian currencies rose with the Taiwanese dollar leading gains with a 1.6% rise while the offshore Chinese yuan rose 0.2%. The dollar index, meanwhile, fell 0.4% to 98, its lowest level in over a month. The rupee was unable to benefit from a broadly weaker dollar in the face of dollar bids from local companies and foreign banks, likely on behalf of custodial clients, traders said. The local currency has been a laggard among its regional peers over 2025 as well, with analysts citing India's external investment deficit among the hurdles that have held it back. On the day, India's benchmark equity indexes, the BSE Sensex and Nifty 50, fell about 1% each on the day, as ambiguity over the U.S-China trade deal and rising Middle East tensions dampened risk appetite. Crude oil prices pulled back on the day after rising over 4% in the previous session in light of Iran's threat to strike U.S. bases in the Middle East region if nuclear talks fail. "Higher oil prices are a dollar positive by way of the U.S. comparative advantage in energy independence," ING Bank said in a note. "Any further developments here could see the dollar favoured for its liquidity – although the yen and Swiss franc would be in demand too," ING said. Dollar-rupee forward premiums, meanwhile, ticked up on the back of a rise in bets on a rate cut by the U.S. Federal Reserve in September after data released on Wednesday showed that U.S. consumer prices rose less-than-expected in May. (Reporting by Jaspreet Kalra; Editing by Mrigank Dhaniwala)
Mint
06-06-2025
- Business
- Mint
India bond traders look for RBI guidance for directional break
MUMBAI, June 6 (Reuters) - Indian government bond yields were flat in early deals on Friday, as the market has already priced in another rate cut from the central bank, and as traders await commentary for a break from rangebound moves. The yield on the benchmark 10-year bond was at 6.1972% as of 9:30 a.m. IST, compared with Thursday's close of 6.1960%. The Reserve Bank of India is widely expected to cut rates by 25 basis points for the third consecutive time this year, as muted inflation provides ample space to focus on boosting economic growth. The announcement is due at 10:00 a.m. IST. The RBI has lowered rates by 50 bps so far in 2025 and infused $100 billion into the banking system between December and May. "If there is only a rate cut and no other major announcement, we could see strong selling pressure at least for the time being, and do not rule out the test of 6.25% on the new 10-year paper," a trader with a private bank said. While most economists expect a 25 bps cut, the State Bank of India has said the RBI could slash rates by an outsized 50 bps to jumpstart the credit cycle. Apart from rate cuts, markets are also betting on the central bank introducing additional liquidity measures, which would support short-end bonds. New Delhi will sell bonds worth 360 billion rupees ($4.20 billion) later in the day. Short-term overnight index swap (OIS) rates were not yet traded. The one-year OIS rate settled at 5.53% on Thursday, while the two-year OIS rate closed at 5.41%. The most liquid five-year OIS stayed below its key technical level after a break in the previous session and was at 5.60%. ($1 = 85.7950 Indian rupees) (Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)
Mint
23-05-2025
- Business
- Mint
Rupee to receive early lift from Asian peers; traders doubt follow through
MUMBAI, May 23 (Reuters) - The Indian rupee may find brief support at the open on Friday, buoyed by strength in Asian peers, although scepticism persists about the durability of the initial up move. The 1-month non-deliverable forward indicated a open in the 85.94 to 85.96 range versus 86.0025 in the previous session. The rupee is on track for its third straight weekly decline, having dropped more than 1.5% this month — making it one of the worst performers in the Asian FX space. In contrast, the offshore Chinese yuan has advanced 1% this month, the Korean won is up nearly 4%, while the Indonesian rupiah and Thai baht have each added around 2%. The rupee's underperformance has been largely attributed to immediate dollar outflows, hedging and the unwinding of long rupee positions. Notably, the currency has closed at its intraday low for the past three sessions, reflecting the persistent downside pressure. 'The rupee's recent behaviour has been unusual, to say the least. Like me, I'm sure most didn't expect to see 86 this quickly,' a Mumbai-based currency trader at a local bank remarked. Traders are sceptical that Friday's opening dip in USD/INR will hold, given the recent tendency for dips to fade. "Today, the odds are stacked against the opening move lower sustaining, considering the lack of staying power seen in recent dips," the trader said. Asian currencies were up on Friday, extending their weekly advance. The rise in U.S. Treasury yields on the back of fiscal concerns has not had an impact on Asian currencies, Expectation of trade and FX deals with the U.S was likely fuelling the move higher in Asian currencies, MUFG Bank said in a note. Whether this divergence can continue will likely be determined by future trajectory of tariffs and whether the extent of rise in U.S. yields constrain growth and risk sentiment, it said. ** One-month non-deliverable rupee forward at 86.10; onshore one-month forward premium at 14 paise ** Dollar index down at 99.64 ** Brent crude futures down 0.8% at $63.9 per barrel ** Ten-year U.S. note yield at 4.52% ** As per NSDL data, foreign investors bought a net $265.6 mln worth of Indian shares on May 21 ** NSDL data shows foreign investors bought a net $6.2 mln worth of Indian bonds on May 21 (Reporting by Nimesh Vora; Editing by Mrigank Dhaniwala)
Yahoo
07-05-2025
- Automotive
- Yahoo
HK-listed Geely eyes privatisation of Chinese unit ZEEKR
(Reuters) -Hong Kong-listed Geely Automobile Holdings said on Wednesday it is looking to privatise its Chinese automaker unit ZEEKR, proposing to value the unit at US$2.566 per ZEEKR share or $25.66 per American Depository Share. (Reporting by Shivangi Lahiri in Bengaluru; Editing by Mrigank Dhaniwala)
