INR plunges to 3-month low against dollar
The Indian rupee extended decline for the third straight session and plunged to a three month low on Thursday. INR depreciated 30 paise to close at 86.73 (provisional) against US dollar on Thursday, weighed down by the strength of the American currency in the overseas markets and rebound in international crude oil prices fuelled by ongoing geopolitical uncertainties. Moreover, muted domestic equity markets also added pressure on the rupee. A cautious undertone prevailed as investors reacted to hawkish commentary from the Federal Reserve and rising tensions in the Middle East. At the end of a two-day policy meeting on Wednesday, the U.S. central bank left interest rates unchanged but warned about higher inflation and slower economic growth in the months ahead. On the geopolitical front, speculation grew over a possible U.S. involvement in the Israel-Iran conflict. The benchmark S&P/BSE Sensex ended the session down 82.79 points, or 0.10 percent, at 81,361.87 while the broader NSE Nifty index slipped 18.80 points, or 0.08 percent, to 24,793.25. On the NSE, USDINR futures added 0.30% to end at 86.77.
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Economic Times
16 minutes ago
- Economic Times
US stock market outlook amidst Iran Israel War: Will S&P 500, Dow Jones, Nasdaq go up on Friday after Juneteenth holiday?
S&P 500, Dow Jones, and Nasdaq traders will keep eyes on Iran-Israel conflict as the US Stock Markets open on Friday. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads FAQs US stock market indexes -- S&P 500 Dow Jones , and Nasdaq -- will look to open in green on Friday. However, investors will remain cautious following ongoing fighting between Iran and Israel. S&P 500 futures fell almost 1 per cent, although most U.S. markets - including Wall Street and the Treasury market - will be closed on Thursday for a public holiday."Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at was rife "that the U.S. will intervene, something that would mark a material escalation and could invite direct retaliation against the U.S. by Iran. Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth," he of the recent nervousness in markets has been centred around crude supply shocks from the Middle East. Wall Street stocks ended little changed Wednesday after the Federal Reserve kept interest rates Jones Industrial Average ended down 0.1 percent at 42,171.66. The broad-based S&P 500 slipped less than 0.1 percent to 5,980.87, while the tech-rich Nasdaq Composite Index added 0.1 percent at 19, market's ability to avoid major losses amid the Middle East turmoil is "extremely bullish", said Adam Sarhan of 50 Park Investments, while still pointing to trade-talk uncertainty as a market believes that "most likely cooler heads will prevail on the trade front and on the Middle East front," said Sarhan, who described Wednesday's Fed meeting outcome as in line with expectations.A1. US stock market indexes are S&P 500, Dow Jones, and Nasdaq.A2. Dow Jones Industrial Average ended down 0.1 percent at 42,171.66. The broad-based S&P 500 slipped less than 0.1 percent to 5,980.87, while the tech-rich Nasdaq Composite Index added 0.1 percent at 19,546.27.
India Today
17 minutes ago
- India Today
Trump expressed keen interest in forging trade ties with Islamabad: Pak Army
US President Donald Trump has expressed "keen interest" in developing a "mutually beneficial" trade partnership with Pakistan based on long-term strategic convergence and shared interests, the army said on a statement after a meeting between Trump and Pakistan Army Chief Asim Munir at the White House on Wednesday, the Inter-Services Public Relations (ISPR) - the media wing of the Pakistan Army - said they also discussed joint counterterrorism the high-level engagement, the discussions also encompassed avenues for expanding bilateral cooperation in multiple domains, including trade, economic development, mines and minerals, artificial intelligence, energy, cryptocurrency and emerging technologies, the ISPR said. "President Trump expressed keen interest in forging a mutually beneficial trade partnership with Pakistan based on long-term strategic convergence and shared interests," said the the first formal reaction by the Pakistani government, Defence Minister Khawaja Asif on Thursday said the meeting between Army Chief Munir and President Trump helped to highlight the Pakistan-India a post on X, Asif said the meeting was a milestone in Pakistan-US relations because "this is the first time that a US President has invited and met a Pakistani Army Chief".Describing the Trump-Munir meeting as "the most important turning point in the 78-year history of relations", Asif said the development is the success of the "current hybrid model of governance", involving the elected government and the comments seem to be a departure from the past when political parties demanded non-interference of the army in political Chief of Army Staff "conveyed the deep appreciation of the Government and people of Pakistan for President Trump's constructive and result-oriented role in facilitating a ceasefire between Pakistan and India in the recent regional crisis", the ISPR acknowledged President Trump's statesmanship and his ability to comprehend and address the multifaceted challenges faced by the global community, the statement Trump, in turn, lauded Pakistan's ongoing efforts for regional peace and stability, and appreciated the robust counter-terrorism cooperation between the two states, the ISPR sides reaffirmed their commitment to continued collaboration in the field of counter-terrorism, it of State Marco Rubio and US Special Representative for the Middle East Steve Witkoff accompanied Trump. Munir was joined by National Security Advisor Lt Gen Asim Malik, who is also the head of the intelligence agency ISI. No senior civilian official from Pakistan was present.A detailed exchange of views also took place on the prevailing tensions between Iran and Israel, with both leaders emphasising the importance of the resolution of the conflict, the ISPR Trump commended Munir's leadership and decisiveness during a period of complex regional dynamics, it a "gesture reflecting the warmth of bilateral ties", Munir extended an invitation to President Trump, on behalf of the Government of Pakistan, to undertake an official visit to Pakistan at a mutually convenient date, the statement initially scheduled for one hour, the meeting was extended for over two hours, underscoring the depth and cordiality of the dialogue, it added."The engagement marks a significant moment in the ongoing efforts to reinforce the longstanding partnership between Pakistan and the US, built upon shared objectives of peace, stability and prosperity," according to the President Trump said it was an honour for him to meet the Chief of Army Staff during a luncheon held at the Cabinet Room in the White House, the first-ever such honour for any Pakistani army is rare for the US President to host a lunch for an army chief of a foreign country. There have been precedents of Pakistan army chiefs, including Ayub Khan, Zia ul-Haq and Pervez Musharraf, receiving such invites. But they were holding the post of president as to the media after the event, Trump extended his gratitude to Pakistan's military chief for visiting and acknowledged his role in helping stop war with was honoured to meet him (Field Marshal Munir) today," Trump said. "I invited him to thank him for not going to war. He deserves appreciation for helping secure the ceasefire."When asked if the talks included the Iran-Israel conflict, Trump said, "They (Pakistan) know Iran very well, better than most, and they're not happy about anything. It's not that they're bad with Israel. They know them both, actually, but they know Iran better."According to experts, the meeting was a significant boost for relations between the two countries, which had been under strain for years due to suspicion in the US that Pakistan had failed to help it stabilise Afghanistan, which resulted in a hasty withdrawal from the country in meeting comes after the recent tension with India and Trump umpteen times took credit for stopping the conflict, for which Pakistan thanked him for his has been maintaining that the Director Generals of Military Operations (DGMOs) of India and Pakistan reached an understanding to stop all firings and military actions on land, air and sea with immediate effect on May Watch IN THIS STORY#India-Pakistan#Pakistan#Donald Trump
Time of India
19 minutes ago
- Time of India
icra: 4 reasons why crude oil is not likely to sustain $80/bbl. How is India impacted?
Here are 4 reasons why Brent may sustain $80 per bbl: 1) Iran's Strait of Hormuz gamble too costly to close ADVERTISEMENT 2) OPEC production 3) US Shale factor ADVERTISEMENT 4) Global oil demand growth projections ADVERTISEMENT Impact on India While the Israel-Iran tension has kept crude oil on the boil with an 8% jump in the past eight days and 23% over a month, the black gold is unlikely to breach the $80 per barrel mark, according to estimates by a couple of brokerages."While the Iran–Israel conflict is serious and merits close monitoring, we reckon Brent Oil price is unlikely to sustain above US$80/bbl in a durable way unless the Strait of Hormuz is closed, or critical Gulf infrastructure is targeted," Yes Securities said in a note. ICRA too expects crude prices to average between $70-80/bbl for persistent geopolitical tensions and repeated threats, ranging from the Iran–Iraq War to post-Iran Nuclear deal fallout, Iran has never acted on its threat to close the Strait of Securities calls this restraint strategic and economic. The Strait handles nearly 20% of global oil consumption and is vital for Qatar's LNG exports, Iran's own trade, and the energy trade of regional allies like Iraq. A full closure would not only trigger military retaliation, particularly from the US, but also damage Iran's economic interests and international standing, this brokerage has wielded the threat of disruption as a geopolitical bargaining tool, without crossing the line into direct confrontation, Yes OPEC holding spare capacity of 4mbpd—well above Iran's 1.5mbpd exports—and a projected global market surplus of 0.9mbpd before the Israel-Iran flare-up, there is ample supply believes that even if Iranian supplies of 1.5mbpd are taken out, OPEC's spare production capacity of 4mbpd is good enough to compensate for the 2008, the rise of US shale has added millions of barrels per day to global supply, increasing flexibility and price elasticity. This has allowed the market to absorb geopolitical shocks more effectively, with tensions involving Iran, Libya, or Venezuela causing only short-lived price spikes."OPEC's diminished market share and increased spare capacity, especially from Saudi Arabia and the UAE, have further capped volatility, making oil prices more range-bound and positioning US shale as a soft ceiling on prices," Yes Securities which is the second largest consumer of oil, has seen a subdued demand post-COVID due to economic rebalancing and a weak real estate sector, Yes Securities said. Long-term energy transition trends such as the rise of electric vehicles, improved fuel efficiency, and supportive green energy transition policies are further restraining demand growth in OECD countries."This softened outlook is mirrored in recent agency forecasts. The International Energy Agency now expects global oil demand to grow by about 0.72mbpd in 2025, down from the earlier estimate of 1mbpd. EIA now projects global oil consumption to rise by 0.8mbpd in 2025, down from the earlier projection of 1mbpd," Yes to ICRA, crude oil imports from Iraq, Saudi Arabia, Kuwait and the UAE that pass through the Strait of Hormuz (SoH) account for 45-50% of total crude imports by India. Moreover, about 60% of the natural gas imports by India pass through the SoH.A $10/bbl increase in the average price of crude oil for the fiscal year will typically push up net oil imports by $13-14 billion during the these elevated crude oil prices, while the profitability of upstream players will remain healthy and their capex plans will remain intact, the marketing margins of downstream players will be impacted, along with the expansion of LPG under-recoveries.
