Latest news with #One-month
News18
4 days ago
- Business
- News18
Rupee falls 12 paise to close at 87.59 against US dollar
Agency: PTI Mumbai, Aug 14 (PTI) Rupee pared initial gains and settled for the day on a negative note, lower by 12 paise at 87.59 against the US dollar on Thursday, as it came under pressure due to continued dollar demand from importers. Forex traders said the rupee pared initial gains on positive crude oil prices, dollar demand from importers and foreign fund outflows. Moreover, there is an overall negative bias amid uncertainties over the trade tariff issue between India and the US. At the interbank foreign exchange, the domestic unit opened at 87.48 and moved in a range of 87.39 to 87.67 during the day before settling at 87.59, lower by 12 paise from its previous close. On Wednesday, the rupee appreciated 16 paise to close at 87.47 against the US dollar. According to analysts, investors are in a wait-and-watch mode ahead of the US-Russia talks on August 15. Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers, said the rupee showed marginal weakness as traders awaited the the US and Russia meet outcome with near-term implied volatility at its one-month lows and option pricing showed lesser bias toward rupee weakness. One-month implied volatility on the dollar rupee front stood at 4.35 per cent, the lowest this month. 'Expectations remain for the rupee to trade with a positive bias on risk sentiments in the global market and a weakening US dollar. Softening inflation and declining crude oil prices may further support the domestic currency," Sharma said. Meanwhile, Brent crude prices rose 0.49 per cent to USD 65.95 per barrel in futures trade as it regained ground after falling much more in the previous session, with the upcoming US-Russia talks raising risk premiums in the market. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 97.82. In the domestic equity market, Sensex climbed 57.75 points to settle at 80,597.66, while the Nifty closed 11.95 points up at 24,631.30. Foreign Institutional Investors offloaded equities worth Rs 1,926.76 crore on Thursday, according to exchange data. On the domestic macroeconomic front, S&P on Thursday upgraded India's sovereign credit rating to 'BBB' with a stable outlook after a gap of nearly 19 years, citing robust economic growth, political commitment for fiscal consolidation and 'conducive' monetary policy to check inflation. The impact of US tariffs on the Indian economy will be 'manageable", S&P said, adding that a 50 per cent tariff on US exports (if imposed) will not pose a 'material drag" on growth. 'India is relatively less reliant on trade and about 60 per cent of its economic growth stems from domestic consumption," it said. The rating upgrade by a US-based agency comes days after American President Donald Trump dubbed India as a 'dead economy". Trump has imposed the highest 50 per cent tariff on Indian goods with effect from August 27. Also, the rating upgrade will help lower borrowing cost of Indian companies in international markets. PTI DRR HVA view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Japan Times
25-02-2025
- Business
- Japan Times
Yen volatility nears six-week high as Tokyo inflation gauge eyed
A gauge tracking near-term price swings in the Japanese yen climbed on Monday, approaching a six-week high as traders grappled with the prospect of more inflationary pressure on one hand and Bank of Japan warnings against a quick surge in bond yields on the other. One-month USD/JPY implied volatility rose for a second time in three days to 10.77%, on course for the highest close since Jan. 15. Investors seem to be divided on how quickly policymakers should withdraw their monetary stimulus. The country's inflation accelerated more than forecast last week, and this week's Tokyo CPI reading is expected to reinforce that narrative of more rate hikes. Expectations of more policy tightening have helped the yen rally nearly 4% in February, putting it on track for one of the best performances among 16 major currencies tracked by Bloomberg. Bank of Japan Governor Kazuo Ueda on Friday signaled readiness to intervene in the bond market to quell soaring yields, which prompted the yen to trim gains. Any follow-up actions in the coming weeks could lead to more price swings in the currency, even as its outlook for more appreciation remains intact. On Monday, one-month USD/JPY risk reversals traded at 1.46% in favor of puts, which suggests markets see more yen gains in the month to come. Traders are paying much more for put options that look for dollar-yen to fall than calls that bet on the currency pair to rise.
Bloomberg
24-02-2025
- Business
- Bloomberg
Yen Volatility Nears Six-Week High as Tokyo Inflation Gauge Eyed
A gauge tracking near-term price swings in the Japanese yen climbed on Monday, approaching a six-week high as traders grappled with the prospect of more inflationary pressure on one hand and Bank of Japan warnings against a quick surge in bond yields on the other. One-month USD/JPY implied volatility rose for a second time in three days to 10.77%, on course for the highest close since Jan. 15.
