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Mint
2 days ago
- Business
- Mint
Rupee slips past 87-mark against US dollar, hits lowest level in over 4 months. What's behind the weakness?
The Indian rupee weakened past the 87 level against the US dollar on Wednesday, hitting its lowest level since mid-March, amid uncertainty over the proposed India-US trade deal and a surge in global crude oil prices. Analysts also attributed the decline to month-end dollar demand from importers and continued foreign fund outflows. Rupee opened on a weaker note and depreciated by 24 paise from its previous close, touching an early low of 87.15 against the greenback. In the previous session, the rupee had already slipped to an over four-month low, ending 21 paise lower at 86.91. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.11% to 98.77. US President Donald Trump said Indian exports to the US would likely see 20% - 25% tariffs, a move that could squeeze export margins, widen the current account deficit, and keep the rupee under pressure. 'A possible 20–25% tariff on Indian exports, suggested by US political rhetoric, has intensified pressure. Delays in concluding a bilateral trade deal, with a deadline looming August 1, are denting investor confidence. A surging US dollar index, partly due to euro weakness after a US–EU trade deal, is applying headwinds to the INR,' said Jigar Trivedi, Senior Research Analyst at Reliance Securities. Meanwhile, Reuters reported that India is holding off on fresh trade concessions ahead of the August 1 deadline and instead aims to wrap up a comprehensive bilateral deal by September or October. 'The rupee slipped to a fresh four-month low, caught in a crossfire of delayed trade progress, surging oil prices, and global risk repricing. With no breakthrough on the India-US trade front and crude rising sharply, the rupee had little choice but to retreat,' said Amit Pabari, MD, CR Forex Advisors. On the domestic front, focus will be on the Reserve Bank of India's (RBI) monetary policy next week. 'While rates are expected to remain unchanged, the stance will be crucial — a more cautious and assertive tone could support the rupee, whereas a lenient or accommodative approach may weigh on it further,' Pabari said. Jigar Trivedi believes if US-India trade negotiations escalate, or if tariff threats materialize, USD/INR could temporarily breach 87.20 and 87.60 levels in August. Amit Pabari expects the pressure on rupee is likely to persist in the near term. 'Continued dollar strength and trade uncertainty could push it further toward the 87.20 – 87.35 zone. The 87 mark remains a critical level, as heightened volatility around it may trigger RBI intervention. On the downside, support is seen between 86.20 and 86.50,' Pabari said. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Reuters
4 days ago
- Business
- Reuters
Gold rises as soft dollar offsets risk-on mood from US-EU tariff deal
July 28 (Reuters) - Gold prices climbed in choppy trading on Monday, as a weaker dollar helped offset pressure from improved risk appetite following a trade framework agreement between the United States and the European Union. Spot gold was up 0.2% at $3,342.73 per ounce, as of 0557 GMT, after touching its lowest level since July 17. U.S. gold futures edged 0.2% higher to $3,342.80. The U.S. struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods - half the threatened rate - and averting a bigger trade war between the two allies that account for almost a third of global trade. However, the agreement left key issues unresolved, including tariffs on spirits. The agreement eased transatlantic trade tensions, putting pressure on gold, said Jigar Trivedi, a senior commodity analyst at Reliance Securities, adding that it also softened the dollar index, which provided some cushion to bullion. The U.S. dollar index (.DXY), opens new tab edged lower, making greenback-priced bullion more affordable for overseas buyers. Risk sentiment improved following the agreement, with European currencies and U.S. stock index futures trading higher. Meanwhile, senior U.S. and Chinese negotiators are set to meet in Stockholm later in the day to address long-standing economic disputes, seeking to extend a truce that has prevented higher tariffs. "In the short term, we don't expect gold to experience wild swings. Investors are turning their focus to a pivotal week for U.S. monetary policy and economic data," Trivedi said. The Federal Reserve is expected to maintain its benchmark interest rate in the 4.25%-4.50% range after its two-day policy meeting concludes on Wednesday. U.S. President Donald Trump said on Friday he had a positive meeting with Powell, suggesting the Fed chief might be inclined to lower interest rates. Spot silver was up 0.4% at $38.28 per ounce, while platinum gained 1.2% to $1,417.81 and palladium rose 2.8% to $1,254.37.
Reuters
4 days ago
- Business
- Reuters
Gold stages rebound on dollar weakness; US, EU ink tariff deal
July 28 (Reuters) - Gold prices gained in choppy trading on Monday, as a weaker dollar helped to offset pressure from improved risk appetite after United States and European Union announced a trade framework agreement. Spot gold was up 0.2% at $3,342.62 per ounce, as of 0421 GMT, after touching its lowest level since July 17. U.S. gold futures edged 0.2% higher to $3,342.90. The U.S. struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods - half the threatened rate - and averting a bigger trade war between the two allies that account for almost a third of global trade. However, the agreement left key issues unresolved, including tariffs on spirits. The agreement eased transatlantic trade tensions, putting pressure on gold, said Jigar Trivedi, a senior commodity analyst at Reliance Securities, adding that it also softened the dollar index, which provided some cushion to bullion. The U.S. dollar index (.DXY), opens new tab eased 0.1%, making greenback-priced bullion more affordable for overseas buyers. Risk sentiment improved following the agreement, with European currencies and U.S. stock index futures trading higher. Meanwhile, senior U.S. and Chinese negotiators are set to meet in Stockholm later in the day to address long-standing economic disputes, seeking to extend a truce that has prevented higher tariffs. "In the short term, we don't expect gold to experience wild swings. Investors are turning their focus to a pivotal week for U.S. monetary policy and economic data," Trivedi said. The Federal Reserve is expected to maintain its benchmark interest rate in the 4.25%-4.50% range after its two-day policy meeting concludes on Wednesday. U.S. President Donald Trump said on Friday he had a positive meeting with Powell, suggesting the Fed chief might be inclined to lower interest rates. Spot silver was up 0.2% at $38.21 per ounce, while platinum gained 1.2% to $1,417.67 and palladium rose 2.9% to $1,254.98.
CNBC
4 days ago
- Business
- CNBC
Gold falls to near two-week low after US, EU agree to tariff deal
Gold prices fell to their lowest level in nearly two weeks on Monday, as a framework trade agreement between the United States and European Union ahead of the August 1 tariff deadline boosted appetite for risk assets. Spot gold was down 0.1% at $3,332.18 per ounce, as of 0208 GMT, after touching its lowest level since July 17. U.S. gold futures edged 0.1% lower to $3,331.60. The U.S. struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods - half the threatened rate - and averting a bigger trade war between the two allies that account for almost a third of global trade. However, the agreement left key issues unresolved, including tariffs on spirits. The agreement eased transatlantic trade tensions, putting pressure on gold, said Jigar Trivedi, a senior commodity analyst at Reliance Securities, adding that it also softened the dollar index, which provided some cushion to bullion. The U.S. dollar index eased 0.1%, making greenback-priced bullion more affordable for overseas buyers. Risk sentiment improved following the agreement, with European currencies and U.S. stock index futures trading higher. Meanwhile, senior U.S. and Chinese negotiators are set to meet in Stockholm later in the day to address long-standing economic disputes, seeking to extend a truce that has prevented higher tariffs. "In the short term, we don't expect gold to experience wild swings. Investors are turning their focus to a pivotal week for U.S. monetary policy and economic data," Trivedi said. The Federal Reserve is expected to maintain its benchmark interest rate in the 4.25%-4.50% range after its two-day policy meeting concludes on Wednesday. U.S. President Donald Trump said on Friday he had a positive meeting with Powell, suggesting the Fed chief might be inclined to lower interest rates. Spot silver was up 0.2% at $38.23 per ounce, while platinum gained 0.6% to $1,409.50 and palladium rose 0.6% to $1,227.76.
Yahoo
4 days ago
- Business
- Yahoo
Gold falls to near two-week low after US, EU agree to tariff deal
By Anmol Choubey (Reuters) -Gold prices fell to their lowest level in nearly two weeks on Monday, as a framework trade agreement between the United States and European Union ahead of the August 1 tariff deadline boosted appetite for risk assets. Spot gold was down 0.1% at $3,332.18 per ounce, as of 0208 GMT, after touching its lowest level since July 17. U.S. gold futures edged 0.1% lower to $3,331.60. The U.S. struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods - half the threatened rate - and averting a bigger trade war between the two allies that account for almost a third of global trade. However, the agreement left key issues unresolved, including tariffs on spirits. The agreement eased transatlantic trade tensions, putting pressure on gold, said Jigar Trivedi, a senior commodity analyst at Reliance Securities, adding that it also softened the dollar index, which provided some cushion to bullion. The U.S. dollar index eased 0.1%, making greenback-priced bullion more affordable for overseas buyers. Risk sentiment improved following the agreement, with European currencies and U.S. stock index futures trading higher. Meanwhile, senior U.S. and Chinese negotiators are set to meet in Stockholm later in the day to address long-standing economic disputes, seeking to extend a truce that has prevented higher tariffs. "In the short term, we don't expect gold to experience wild swings. Investors are turning their focus to a pivotal week for U.S. monetary policy and economic data," Trivedi said. The Federal Reserve is expected to maintain its benchmark interest rate in the 4.25%-4.50% range after its two-day policy meeting concludes on Wednesday. U.S. President Donald Trump said on Friday he had a positive meeting with Powell, suggesting the Fed chief might be inclined to lower interest rates. Spot silver was up 0.2% at $38.23 per ounce, while platinum gained 0.6% to $1,409.50 and palladium rose 0.6% to $1,227.76. Sign in to access your portfolio
