Latest news with #dollarIndex
Yahoo
26-05-2025
- Business
- Yahoo
Rupee ends slightly higher; importer dollar bids, yuan's slip erode early gains
By Jaspreet Kalra MUMBAI (Reuters) -The Indian rupee closed modestly stronger after hitting a two-week high on Monday as a turnaround in the dollar index weighed on regional peers like the Chinese yuan, which touched a seven-month peak earlier in the day. The rupee closed at 85.0.850 against the U.S. dollar, up 0.1% from its close at 85.2125 in the previous session. The currency had risen to 84.79 before trimming gains, as the dollar edged higher against major peers and importer demand emerged above the 85 level, traders said. The dollar index was little changed at 99 after hitting an over month-low of 98.6 in early trading. The offshore Chinese yuan, meanwhile, was last quoted down 0.1% at 7.18 per U.S. dollar. U.S. President Donald Trump's trade policy reversals, as well as his sweeping spending and tax-cut bill currently in legislation, have weighed on the appetite for U.S. assets and the dollar, by extension. "It's a very EM positive environment, and I don't see any reason why that will stop in the near-term," said Brad Bechtel, global head of foreign exchange at Jefferies. Bechtel pointed out that the dollar could be exposed to steeper losses if China allows the yuan to start moving substantially higher. While Asian currencies have risen by as much as 7% on the month so far, the offshore yuan's gains are lower at about 1.4% and the Indian rupee is a laggard with a 0.6% fall over May. Meanwhile, India's benchmark equity indexes closed higher by about 0.6% each on day, tracking gains in most regional peers. The country's benchmark 10-year bond yield eased slightly with analysts expecting the downtrend in bond yields and overnight index swap rates to persist on expectations that the central bank will infuse further liquidity and lower interest rates.
Reuters
26-05-2025
- Business
- Reuters
Rupee ends slightly higher; importer dollar bids, yuan's slip erode early gains
MUMBAI, May 26 (Reuters) - The Indian rupee closed modestly stronger after hitting a two-week high on Monday as a turnaround in the dollar index weighed on regional peers like the Chinese yuan, which touched a seven-month peak earlier in the day. The rupee closed at 85.0.850 against the U.S. dollar, up 0.1% from its close at 85.2125 in the previous session. The currency had risen to 84.79 before trimming gains, as the dollar edged higher against major peers and importer demand emerged above the 85 level, traders said. The dollar index was little changed at 99 after hitting an over month-low of 98.6 in early trading. The offshore Chinese yuan , meanwhile, was last quoted down 0.1% at 7.18 per U.S. dollar. U.S. President Donald Trump's trade policy reversals, as well as his sweeping spending and tax-cut bill currently in legislation, have weighed on the appetite for U.S. assets and the dollar, by extension. "It's a very EM positive environment, and I don't see any reason why that will stop in the near-term," said Brad Bechtel, global head of foreign exchange at Jefferies. Bechtel pointed out that the dollar could be exposed to steeper losses if China allows the yuan to start moving substantially higher. While Asian currencies have risen by as much as 7% on the month so far, the offshore yuan's gains are lower at about 1.4% and the Indian rupee is a laggard with a 0.6% fall over May. Meanwhile, India's benchmark equity indexes closed higher by about 0.6% each on day, tracking gains in most regional peers. The country's benchmark 10-year bond yield eased slightly with analysts expecting the downtrend in bond yields and overnight index swap rates to persist on expectations that the central bank will infuse further liquidity and lower interest rates.
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Business Standard
20-05-2025
- Business
- Business Standard
Indian Rupee snaps two-day winning streak; opens 8 paise lower at 85.48/$
The Indian Rupee opened weaker on Tuesday, snapping two days of gains, amid a lack of major triggers for the currency. The domestic currency opened 8 paise lower at 85.48 after closing at 85.40 against the greenback on Monday, according to Bloomberg data. So far this calendar year, the currency has depreciated by 0.3 per cent. The local unit is expected to open a tad weaker at 85.44 and will remain in a range of 85.25/75 for the day as there is no fresh market indicator for it to change course, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "With US yields falling, there could be some buying in the dollar to take the pair higher." The Dollar index continues to weaken amid pressures from a ratings downgrade for the US debt by Moody's Ratings. The Index, which measures the greenback against a basket of six major currencies, was trading 0.06 per cent lower at 100.36. The dollar Index faces immediate resistance around the 101.20–101.40 zone, with support at 100.00, according to Amit Pabari, managing director at CR Forex Advisors. Moody's downgraded the US rating from a top-tier rating of AAA to AA1, citing concerns over the ballooning debt that could worsen under President Donald Trump's tax cuts. A strong foreign institutional investor (FII) inflow, totalling nearly $1.4 billion over the last two trading sessions, further supported the rupee, Pabari said. "Additionally, upcoming initial public offerings are likely to attract more FII inflows, further strengthening the currency." The rupee is expected to trade in a stable range of 85.00–85.80 in the near term, Pabari noted. "As the dollar continues to slide due to deepening fiscal concerns in the US, the rupee may witness further appreciation." Meanwhile, after a phone call with Vladimir Putin, US President Donald Trump said that Russia and Ukraine will 'immediately' begin negotiations to end the war. Following this, Brent crude price was down 0.08 per cent to $65.49 per barrel, while WTI crude prices were flat at 62.69, as of 9:12 AM.
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Business Standard
19-05-2025
- Business
- Business Standard
Indian Rupee ends higher at 85.40/$ as dollar slips after Moody's downgrade
The Indian Rupee closed stronger against the dollar on Monday as the greenback faced renewed pressure after Moody's ratings downgraded the US debt. The domestic currency ended 12 paise higher at 85.40 after closing at 85.52 against the greenback on Friday, according to Bloomberg data. Moody's downgraded the US rating from a top-tier rating of AAA to AA1, citing concerns over the ballooning debt that could worsen under President Donald Trump's tax cuts. However, Treasury Secretary Scott Bessent said in an interview that "Moody's is a lagging indicator — that's what everyone thinks of credit agencies," downplaying any debt concerns. Markets could interpret the downgrade as a red flag for fiscal irresponsibility, potentially putting downward pressure on the dollar, according to Amit Pabari, managing director at CR Forex Advisors. The dollar Index, which measures the greenback against a basket of six major currencies, was trading 0.90 per cent lower at 100.18. Asian equities edged lower alongside the dollar and US futures contracts after Moody's Ratings slashed the US government's credit rating. If the dollar dips further due to concerns from the US credit rating downgrade, the rupee could see some upside, Pabari said. Further, a strong wave of foreign inflows into Indian equity markets indicates renewed optimism about India's macroeconomic stability, he said. "This uptick in investor sentiment provided much-needed support to the rupee amid a volatile global backdrop." The rupee has held its ground against the US dollar in the 2025 calendar year so far, but depreciated significantly against the euro and pound. It fell by 6.83 per cent, and 5.44 per cent against the euro and pound, respectively, as the two currencies strengthened significantly against the greenback during the period. READ MORE Crude oil prices continued to trade lower amid talks to end the Ukraine war. Brent crude price was down 0.70 per cent to $64.95 per barrel, while WTI crude prices were lower by 0.74 per cent at 62.03, as of 3:35 PM.
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Business Standard
16-05-2025
- Business
- Business Standard
Rupee ends slightly higher at 85.52/$; falls for second straight week
Rupee closed 3 paise higher at 85.52 after ending at 85.55 against the greenback on Thursday SI Reporter Mumbai Indian Rupee pared early gains on Friday to end marginally higher amid a weakness in the dollar index and crude oil prices. The domestic currency closed 3 paise higher at 85.52 after ending at 85.55 against the greenback on Thursday, according to Bloomberg data. The currency gave up its early gains as it opened 25 paise higher against the dollar. On a weekly basis, the currency logged fell for the second straight week, depreciating 0.16 per cent. The weakness in dollar index persisted after the US clarified that it is not seeking to weaken the dollar as part of trade deals. The dollar Index, which measures the greenback against a basket of six major currencies, was trading 0.12 per cent lower at 100.75. The dollar index fell as the US 10-year yield fell to 4.42 per cent after downside surprises from US data this week cemented bets that the Federal Reserve will cut rates more than three times this year, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. Recent global data points to a potentially softening US economy, which could weigh further on the dollar and provide medium-term support to the rupee, according to Amit Pabari, managing director at CR Forex Advisors. Meanwhile, the currency's movement also comes after the country's trade data. India's merchandise trade deficit widened significantly to $26.42 billion in April from $21.5 billion in March, as a 9 per cent year-on-year uptick in exports was outweighed by a far sharper surge in imports. While April's exports stood at $38.5 billion, imports rose to $64.91 billion, 19.1 per cent higher than a year ago. The sharp rise, driven by an imbalance in trade growth, adds pressure to the rupee by expanding the current account deficit, Pabari said. "Given a softer dollar and strong equity inflows, the rupee may stay range-bound near term. However, a widening trade deficit and geopolitical risks pose downside pressure." In commodities, crude oil prices were down, following a sharp decline on Thursday, as the US-Iran nuclear deal sparked oversupply concerns. Brent crude price was down 0.02 per cent to $64.52 per barrel, while WTI crude prices were lower by 0.06 per cent at 61.58, as of 3:45 PM.
