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Economic Times
5 days ago
- Business
- Economic Times
Rupee buckles under position unwinding; dollar demand builds
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The Indian rupee declined for the sixth time in seven sessions on Wednesday, slipping briefly past 86 to the U.S. dollar, as traders unwound bullish positions amid persistent demand for the rupee weakened to 86.0225 on Thursday before recovering marginally to end the day 0.4% lower at Indian currency has declined nearly 1.5% from a high of 84.78 it touched last Monday, making it one of the worst-performing Asian currencies over this period."There is no real let-up in dollar demand from corporates and it would seem that dollar/rupee shorts are done for now, both in onshore spot and in the non-deliverable forward market," a currency trader at a bank are no more inclined to sell the dollar/rupee pair on rallies, unless "things improve" for the rupee, he rupee has been underperforming regardless of what the dollar index or Asian peers are doing."Frankly, most of us didn't expect this," the trader said, forecasting more losses for the rupee in the coming advisors are urging clients with near-term dollar payables to exercise risk-reward favours "proactive cover" rather than waiting for dips on dollar/rupee, Kunal Kurani, vice president at Mecklai Financial dollar index was marginally higher on Wednesday. Market focus is on the May U.S. non-farm payrolls report on Friday, which could influence expectations around the Federal Reserve's policy currencies were mostly weaker awaiting updates on U.S. trade deals. President Donald Trump 's administration has set a Wednesday deadline for revised trade proposals from key partners.A call between Trump and Chinese President Xi Jinping is reportedly in the works amid mutual accusations of backtracking on tariff rollback commitments.
Time of India
5 days ago
- Business
- Time of India
Rupee buckles under position unwinding; dollar demand builds
The Indian rupee declined for the sixth time in seven sessions on Wednesday, slipping briefly past 86 to the U.S. dollar, as traders unwound bullish positions amid persistent demand for the greenback. The rupee weakened to 86.0225 on Thursday before recovering marginally to end the day 0.4% lower at 85.90. The Indian currency has declined nearly 1.5% from a high of 84.78 it touched last Monday, making it one of the worst-performing Asian currencies over this period. "There is no real let-up in dollar demand from corporates and it would seem that dollar/rupee shorts are done for now, both in onshore spot and in the non-deliverable forward market," a currency trader at a bank said. Speculators are no more inclined to sell the dollar/rupee pair on rallies, unless "things improve" for the rupee, he said. Live Events The rupee has been underperforming regardless of what the dollar index or Asian peers are doing. "Frankly, most of us didn't expect this," the trader said, forecasting more losses for the rupee in the coming days. Forex advisors are urging clients with near-term dollar payables to exercise caution. The risk-reward favours "proactive cover" rather than waiting for dips on dollar/rupee, Kunal Kurani, vice president at Mecklai Financial said. The dollar index was marginally higher on Wednesday. Market focus is on the May U.S. non-farm payrolls report on Friday, which could influence expectations around the Federal Reserve's policy path. Asian currencies were mostly weaker awaiting updates on U.S. trade deals. President Donald Trump 's administration has set a Wednesday deadline for revised trade proposals from key partners. A call between Trump and Chinese President Xi Jinping is reportedly in the works amid mutual accusations of backtracking on tariff rollback commitments.
Reuters
5 days ago
- Business
- Reuters
Rupee buckles under position unwinding; dollar demand builds
MUMBAI, June 4 (Reuters) - The Indian rupee declined for the sixth time in seven sessions on Wednesday, slipping briefly past 86 to the U.S. dollar, as traders unwound bullish positions amid persistent demand for the greenback. The rupee weakened to 86.0225 on Thursday before recovering marginally to end the day 0.4% lower at 85.90. The Indian currency has declined nearly 1.5% from a high of 84.78 it touched last Monday, making it one of the worst-performing Asian currencies over this period. "There is no real let-up in dollar demand from corporates and it would seem that dollar/rupee shorts are done for now, both in onshore spot and in the non-deliverable forward market," a currency trader at a bank said. Speculators are no more inclined to sell the dollar/rupee pair on rallies, unless "things improve" for the rupee, he said. The rupee has been underperforming regardless of what the dollar index or Asian peers are doing. "Frankly, most of us didn't expect this," the trader said, forecasting more losses for the rupee in the coming days. Forex advisors are urging clients with near-term dollar payables to exercise caution. The risk-reward favours "proactive cover" rather than waiting for dips on dollar/rupee, Kunal Kurani, vice president at Mecklai Financial said. The dollar index was marginally higher on Wednesday. Market focus is on the May U.S. non-farm payrolls report on Friday, which could influence expectations around the Federal Reserve's policy path. Asian currencies were mostly weaker awaiting updates on U.S. trade deals. President Donald Trump's administration has set a Wednesday deadline for revised trade proposals from key partners. A call between Trump and Chinese President Xi Jinping is reportedly in the works amid mutual accusations of backtracking on tariff rollback commitments.
Business Recorder
09-05-2025
- Business
- Business Recorder
Indian rupee likely to weaken more on widening India-Pakistan conflict
MUMBAI: The Indian rupee looks set to decline further on Friday, pressured by the widening conflict between India and Pakistan that may trigger increase hedging and speculative activity. The 1-month non-deliverable forward indicated that the rupee will open at 85.80 to 85.90 to the U.S. dollar compared with 85.71 in the previous session. The rupee on Wednesday slumped 1.04%, recording its worst session in more than two years. The currency came under pressure in the afternoon session after India reported Pakistan's attempts to engage military targets. 'Until yesterday afternoon, markets had largely priced in a view that there would be no meaningful worsening in India-Pakistan tensions,' a currency trader at a Mumbai-based bank said. 'That assumption is now being reassessed, and positioning in the rupee will likely need to be adjusted accordingly,' and it may lead to a pick-up in hedging and speculative activity, the trader said. Pakistan and India accused each other of launching drone attacks on Thursday, and Islamabad's Defense Minister said further retaliation was 'increasingly certain'. India said military stations were attacked by Pakistani drones and missiles. Indian equities were set to open more than 1% lower. In the two sessions following the rise in tensions, the activity of foreign investors indicates that they largely held the view that the situation would not have a lasting impact on the Indian economy, analysts said. Indian rupee, shares, bonds drop on signs of escalation in India-Pakistan conflict Preliminary data showed that foreign investors were net buyers of Indian equities on Thursday, after buying approximately $350 million on Wednesday. 'It will be interesting to see how the numbers pan out in today's session. There's a sense that the landscape has shifted,' said Kunal Kurani, Assistant Vice President at Mecklai Financial. Other Asian currencies largely weakened on Friday, while the U.S. dollar rose against its major counterparts, creating additional headwinds for the rupee.
Reuters
07-05-2025
- Business
- Reuters
Indian forex markets largely unfazed by India strikes in Pakistan
MUMBAI, May 7 (Reuters) - India's forex markets exhibited resilience on Wednesday following India's strikes in Pakistan, with the rupee's decline aligning with other Asian currencies and forward premiums witnessing few fluctuations. The rupee was last quoted at 84.5875 against the U.S. dollar, a 0.2% decline for the day, largely mirroring the 0.2%-to-0.4% drop in its Asian peers such as the offshore Chinese yuan, Thai baht, and Indonesian rupiah. The rupee maintained a narrow trading range of 20 paisa. Meanwhile, the dollar/rupee forward premiums exhibited minimal response, with the 1-year implied yield showing little change at 2.17%. "The relative calm is definitely a surprise. It seems the market isn't factoring in a major intensification of tensions at this point," said Kunal Kurani, assistant vice president at Mecklai Financial. "We'll have to wait over the next few days to see if the market's assessment proves correct." The rupee's near-term volatility expectations, too, were largely unchanged following India's military action, with 1-month implied volatility holding near 6%. India said it struck nine Pakistani "terrorist infrastructure" sites, some of them linked to an attack by Islamist militants on tourists that killed 26 people in Indian Kashmir last month. Islamabad called the assault a "blatant act of war" and said it had informed the U.N. Security Council that Pakistan reserved the right to respond appropriately to Indian aggression.
