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New Indian Express
13 hours ago
- Business
- New Indian Express
Weekly review: Indian rupee ends with modest rise as US Dollar Index weakens
CHENNAI: As of the week ending May 30, the Indian rupee (INR) experienced a modest appreciation against the US dollar (USD), closing at ₹85.35, up 0.2% from the previous day's close of ₹85.50. This uptick was influenced by a decline in the US dollar index, which fell due to renewed uncertainties surrounding US trade tariffs and disappointing US economic data, including weaker labor and consumption figures. Despite this short-term gain, the rupee faced challenges over the month of May, declining by approximately 1% and underperforming compared to other Asian currencies. Factors contributing to this decline included geopolitical tensions, particularly between India and Pakistan, corporate demand for dollars, and the Reserve Bank of India's (RBI) interventions aimed at rebuilding foreign exchange reserves. Looking ahead, analysts suggest that the rupee may continue to face pressure due to ongoing global uncertainties and domestic economic factors. The RBI's focus on foreign exchange reserves and potential monetary policy adjustments will be key factors to monitor in the coming weeks. Key Drivers US Dollar Weakness: A fall in the US Dollar Index, prompted by weak labor market data and lower consumer spending in the US, provided a temporary boost to the rupee. Global Trade Concerns: Renewed tensions around U.S. tariffs affected global market sentiment, indirectly supporting the rupee by weakening the dollar. Crude Oil Volatility: Fluctuations in global crude oil prices continued to weigh on investor sentiment, with upward movement posing risks for India's import bill and inflation outlook. Monthly Context Despite the weekly improvement, the rupee ended May with a 1% monthly depreciation, making it the worst-performing Asian currency for the month. Several domestic and geopolitical factors contributed to this underperformance: India-Pakistan Border Tensions: Heightened geopolitical risk dampened investor confidence.
Yahoo
a day ago
- Business
- Yahoo
Goldman Sachs says new risks are breaking old market patterns. 3 portfolio moves could help avoid the fallout.
Markets are volatile, with stocks, bonds, and currencies defying historical patterns. Investor concerns include trade wars, tariffs, bond market issues, and US debt sustainability. Goldman Sachs suggests hedging with gold and positioning for dollar weakness against major currencies. Markets have turned turbulent in recent months amid a wave of new risks that disrupt long-held relationships among stocks, bonds, and currencies. "Recent episodes of simultaneous equity, bond, and dollar declines within that period, especially since early April, have led investors to question whether cross-asset correlations have shifted," wrote Vickie Chang, a macro strategist at Goldman Sachs, on Thursday. Investor sentiment has been shaken by President Donald Trump's trade war and concerns over import tariffs, bond market dysfunction, the Federal Reserve's independence, and US debt sustainability. One of the most striking developments is the decline of US stocks, bonds, and the dollar all at once in what some are calling the "Sell America" trade. This is unusual because bonds typically serve as a cushion when stocks drop, while the dollar tends to strengthen in times of market stress. But the US Dollar Index has already dropped about 8% this year. This is challenging commonly used hedges and typical portfolio strategies, wrote Chang. Chang pointed out "newer worries" about the structural risks of Federal Reserve independence and fiscal sustainability in the US that are shaking up normal market patterns. If these concerns persist, asset correlations could stay off-kilter. Investors should consider three moves to hedge the implications of the fallout from the unusual market movements, she wrote: Position for dollar weakness: especially against the euro, the Japanese yen, and the Swiss franc, to protect against new risks and against US-specific growth worries. Consider buying gold: It's likely to protect against newer structural risks, Chang wrote. Gold is trading around $3,300 an ounce. Goldman Sachs expects the yellow metal to reach $3,700 an ounce by year-end and $4,000 an ounce by mid-2026. Watch risks from longer-dated bonds: Long-dated bonds might not reduce risk as much as they normally do. If concerns about the Fed's independence and US debt hit bond prices, these risks would hurt long-dated bonds harder than shorter-dated ones. Meanwhile, shorter-dated bond yields should protect against equity downside if the market registers clear concerns about economic growth, Chang wrote. She added that the Fed would cut interest rates if the growth outlook weakens materially. Read the original article on Business Insider Sign in to access your portfolio
Business Insider
2 days ago
- Business
- Business Insider
Goldman Sachs says new risks are breaking old market patterns. 3 portfolio moves could help avoid the fallout.
Markets have turned turbulent in recent months amid a wave of new risks that disrupt long-held relationships among stocks, bonds, and currencies. "Recent episodes of simultaneous equity, bond, and dollar declines within that period, especially since early April, have led investors to question whether cross-asset correlations have shifted," wrote Vickie Chang, a macro strategist at Goldman Sachs, on Thursday. Investor sentiment has been shaken by President Donald Trump's trade war and concerns over import tariffs, bond market dysfunction, the Federal Reserve's independence, and US debt sustainability. One of the most striking developments is the decline of US stocks, bonds, and the dollar all at once in what some are calling the "Sell America" trade. This is unusual because bonds typically serve as a cushion when stocks drop, while the dollar tends to strengthen in times of market stress. But the US Dollar Index has already dropped about 8% this year. This is challenging commonly used hedges and typical portfolio strategies, wrote Chang. Chang pointed out "newer worries" about the structural risks of Federal Reserve independence and fiscal sustainability in the US that are shaking up normal market patterns. If these concerns persist, asset correlations could stay off-kilter. Investors should consider three moves to hedge the implications of the fallout from the unusual market movements, she wrote: Position for dollar weakness: especially against the euro, the Japanese yen, and the Swiss franc, to protect against new risks and against US-specific growth worries. Consider buying gold: It's likely to protect against newer structural risks, Chang wrote. Gold is trading around $3,300 an ounce. Goldman Sachs expects the yellow metal to reach $3,700 an ounce by year-end and $4,000 an ounce by mid-2026. Watch risks from longer-dated bonds: Long-dated bonds might not reduce risk as much as they normally do. If concerns about the Fed's independence and US debt hit bond prices, these risks would hurt long-dated bonds harder than shorter-dated ones. Meanwhile, shorter-dated bond yields should protect against equity downside if the market registers clear concerns about economic growth, Chang wrote. She added that the Fed would cut interest rates if the growth outlook weakens materially.
Economic Times
2 days ago
- Business
- Economic Times
Gold price prediction: Gold bulls eye Rs 1.10 lakh/10 gms. Should you accumulate?
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads How to trade gold? Manoj Kumar Jain suggested the following ranges for gold and silver on MCX: Gold has support at Rs 95,000-94,600 and resistance at Rs 95,800-96,160 Silver has support at Rs 97,100-96,600 and resistance at Rs 98,300-99,100 Tired of too many ads? Remove Ads Gold rates in physical markets Gold Price today in Delhi Gold Price today in Mumbai Gold Price today in Chennai Gold Price today in Hyderabad Investors booked profits in gold amid volatility linked to Trump-era tariff concerns, with June gold futures on the MCX opening lower by Rs 592, or 0.62%, at Rs 94,797 per 10 grams on Friday. This came despite preliminary GDP data showing a contraction, which had boosted bullion's safe-haven appeal in the previous ongoing price swings, analysts remain bullish on gold, projecting it could rally to Rs 1,10,000 per 10 grams within a year, citing its historical track record of delivering strong returns to Thursday, gold and silver settled on a positive note in the domestic and international markets. Gold June futures contract settled at Rs 95,389 per 10 grams with a gain of 0.12% and silver July futures contract settled at Rs 97,826 per kilogram with a gain of 0.59%.Meanwhile, on Friday, silver July futures contracts at MCX also opened lower by Rs 884 or 0.9% at Rs 96,942/ and silver showed very high price volatility on Thursday. Gold prices were sharply down after the U.S. Federal court blocked Trump's tariff plan, but prices recovered from their lows after the U.S. President said that he would appeal against the court dollar index also plunged, and the U.S. jobless claims increased larger than expected and supported precious metal prices. The dollar index hit 100 marks in the early trading session but was unable to sustain at higher levels and plunged the US Dollar Index, DXY, was hovering near the 99.44 mark, gaining 0.16 or 0.16%.The U.S. jobless claims increased last week to 2,40,000 against expectations of 2,29000. The preliminary GDP data is also showing contraction in the economic growth and supporting precious metal prices.'We expect gold and silver prices to remain volatile in today's session amid volatility in the dollar index, geo-political tensions and ahead of the key U.S. economic data; gold prices could hold its support level of $3,250 per troy ounce and silver prices could also hold $32.80 per troy ounce levels on a weekly closing basis,' said Manoj Kumar Jain of Prithvifinmart Commodity suggests buying silver around Rs 97,200-96,800 with a stop loss of Rs 96,400 for a target of Rs 98, an investor's perspective, a report by Angel One suggests that despite all the volatility, gold has historically paid good returns, and one should make investments in gold from a long-term perspective.'From a year perspective, $4000/ounce in the international markets and Rs1,10,000/10 gm in the Indian markets looks very much likely,' they that, they advise that one should wait for meaningful correction towards Rs 85,000/10 gms for gold (22 carat) prices in Delhi stand at Rs 57,800/8 grams while pure gold (24 carat) prices stand at Rs 61,584/8 gold (22 carat) prices in Mumbai stand at Rs 57,464/8 grams while pure gold (24 carat) prices stand at Rs 61,256/8 gold (22 carat) prices in Chennai stand at Rs 56,816/8 grams while pure gold (24 carat) prices stand at Rs 60,504/8 gold (22 carat) prices in Hyderabad stand at Rs 56,984/8 grams while pure gold (24 carat) prices stand at Rs 60,760/8 grams.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
2 days ago
- Business
- Time of India
Gold price prediction: Gold bulls eye Rs 1.10 lakh/10 gms. Should you accumulate?
Gold price today: Despite high volatility, analysts expect gold prices to surge to ₹1,10,000 per 10 grams within a year, citing its historical track record of delivering strong returns to investors. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads How to trade gold? Manoj Kumar Jain suggested the following ranges for gold and silver on MCX: Gold has support at Rs 95,000-94,600 and resistance at Rs 95,800-96,160 Silver has support at Rs 97,100-96,600 and resistance at Rs 98,300-99,100 Tired of too many ads? Remove Ads Gold rates in physical markets Gold Price today in Delhi Gold Price today in Mumbai Gold Price today in Chennai Gold Price today in Hyderabad Investors booked profits in gold amid volatility linked to Trump-era tariff concerns, with June gold futures on the MCX opening lower by Rs 592, or 0.62%, at Rs 94,797 per 10 grams on Friday. This came despite preliminary GDP data showing a contraction, which had boosted bullion's safe-haven appeal in the previous ongoing price swings, analysts remain bullish on gold, projecting it could rally to Rs 1,10,000 per 10 grams within a year, citing its historical track record of delivering strong returns to Thursday, gold and silver settled on a positive note in the domestic and international markets. Gold June futures contract settled at Rs 95,389 per 10 grams with a gain of 0.12% and silver July futures contract settled at Rs 97,826 per kilogram with a gain of 0.59%.Meanwhile, on Friday, silver July futures contracts at MCX also opened lower by Rs 884 or 0.9% at Rs 96,942/ and silver showed very high price volatility on Thursday. Gold prices were sharply down after the U.S. Federal court blocked Trump's tariff plan, but prices recovered from their lows after the U.S. President said that he would appeal against the court dollar index also plunged, and the U.S. jobless claims increased larger than expected and supported precious metal prices. The dollar index hit 100 marks in the early trading session but was unable to sustain at higher levels and plunged the US Dollar Index, DXY, was hovering near the 99.44 mark, gaining 0.16 or 0.16%.The U.S. jobless claims increased last week to 2,40,000 against expectations of 2,29000. The preliminary GDP data is also showing contraction in the economic growth and supporting precious metal prices.'We expect gold and silver prices to remain volatile in today's session amid volatility in the dollar index, geo-political tensions and ahead of the key U.S. economic data; gold prices could hold its support level of $3,250 per troy ounce and silver prices could also hold $32.80 per troy ounce levels on a weekly closing basis,' said Manoj Kumar Jain of Prithvifinmart Commodity suggests buying silver around Rs 97,200-96,800 with a stop loss of Rs 96,400 for a target of Rs 98, an investor's perspective, a report by Angel One suggests that despite all the volatility, gold has historically paid good returns, and one should make investments in gold from a long-term perspective.'From a year perspective, $4000/ounce in the international markets and Rs1,10,000/10 gm in the Indian markets looks very much likely,' they that, they advise that one should wait for meaningful correction towards Rs 85,000/10 gms for gold (22 carat) prices in Delhi stand at Rs 57,800/8 grams while pure gold (24 carat) prices stand at Rs 61,584/8 gold (22 carat) prices in Mumbai stand at Rs 57,464/8 grams while pure gold (24 carat) prices stand at Rs 61,256/8 gold (22 carat) prices in Chennai stand at Rs 56,816/8 grams while pure gold (24 carat) prices stand at Rs 60,504/8 gold (22 carat) prices in Hyderabad stand at Rs 56,984/8 grams while pure gold (24 carat) prices stand at Rs 60,760/8 grams.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
