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The Rupee opened to its record low on Monday, as an ongoing stalemate in U.S.-India trade negotiations continued to weigh on the currency alongside persistent foreign selling of local equities and bonds. The rupee slid to a new all-time low of 90.55 per dollar on Friday, marking its second straight session of a new low and capping a week in which it lost nearly 0.5%. Year-to-date, the currency is down 5.6%. A familiar mix of headwinds continues to dominate - the lack of a U.S. trade deal has sapped sentiment, capital flows remain weak at a time when the trade deficit is widening, and a depreciation bias is encouraging importers to step up hedging, leaving exporters reluctant to add dollar supply. The Reserve Bank of India has stepped in frequently in recent months to slow the rupee's slide. However, its support has appeared less forceful since the currency weakened past the 88.80 level. The rupee Monday will have to contend with the poor risk sentiment on the day. Asian equities dipped, tracking the slide in their U.S. peers on Friday. While the softer risk tone has so far left most Asian currencies largely unscathed, the rupee may still struggle, a currency trader said. Attention this week be on central bank meetings. The Bank of Japan is widely expected to raise rates by 25 basis points to 0.75%, while the Bank of England is seen delivering an equal-sized cut to 3.75%. The European Central Bank, meanwhile, is expected to keep the policy rate unchanged. A slate of U.S. economic data delayed by the federal shutdown is due this week, including the November jobs report and the monthly consumer price index. The dollar was nursing losses on Monday while the euro and sterling held steady ahead of their respective central bank decisions this week, with focus squarely on the rate outlooks across major economies as the new year approaches. Currencies were largely rangebound in early Asia trade, as investors braced for a busy week which will also see the release of U.S. inflation data and the closely watched nonfarm payrolls report. The yen was little changed after a key central bank survey showed on Monday that big Japanese manufacturers' business sentiment hit a four-year high. The Japanese currency was 0.1% weaker at 155.94 per dollar. The survey outcome reinforced expectations that the Bank of Japan (BOJ) is poised to raise rates later this week, though attention will be on guidance from Governor Kazuo Ueda regarding the future rate-hike path. Markets have almost fully priced in a cut by the BoE as still-elevated inflation in the UK shows signs of drifting downwards, while expectations are for the ECB to stand pat. Traders have also begun speculating that a rate hike could be on the cards for the ECB in 2026. Sterling eased 0.17% to $1.3359 in early Asia trade on Monday, while the euro was down 0.09% at $1.1730. British inflation data is due on Wednesday. Over in the United States, a host of delayed data owing to the historic government shutdown are set to be released, giving investors a long-anticipated view of the world's largest economy that could help guide markets into year-end. The November jobs report is due on Tuesday, while inflation figures are out on Thursday. Against a basket of currencies, the dollar was struggling to break away from a near two-month low hit last week and stood at 98.43. Oil prices rose on Monday, recouping part of last week's 4% slide, as concerns over potential disruptions from escalating U.S.-Venezuela tensions outweighed lingering oversupply worries and the effects of a potential Russia-Ukraine peace deal. Brent crude futures rose 25 cents, or 0.4%, to $61.37 a barrel at 0055 GMT, and U.S. West Texas Intermediate crude was at $57.67 a barrel, up 23 cents, or 0.4%.......
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GlobalFX

The US dollar weakened sharply against other major currencies after data showed that the US economy suffered a record contraction in Apr-Jun, while jobless claims rose in the week ended Saturday also rose.The US unit also extended its decline globally on Thursday after Trump raised the possibility of delaying presidential election in the US, scheduled for November.European Stocks ended lower on Thursday due to mounting concern over sluggish economic recovery and a possible second wave of the COVID-19 pandemic.Germany reported its worst decline in GDP since 1970, with the Eurozone’s largest economy shrinking 10.1% quarter-on-quarter in Apr-Jun.Corporate earnings were high on investors' agenda on Thursday.In the US, Most share indices ended lower on Wednesday following bleak economic data.Lack of progress in talks between Congressional Democrats, Republicans and the White House on a new coronavirus aid package also weighed on sentiment.Gold futures settled lower on Thursday after nine consecutive days of gains, with the bullion retreating from a record rally as traders booked some profit.......
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