News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/rPd6B5KzuI
  • Time-cycle analysis suggests that the Japanese Yen could slide significantly lower against its major counterparts. Key levels for AUD/JPY, EUR/JPY and GBP/JPY. Get your market update from @DanielGMoss here:https://t.co/WPq4Z9zzEw https://t.co/VzVLrBbL9q
  • The Australian Dollar looks poised to outperform the haven-associated US Dollar and Japanese Yen. However, it may lose ground to the New Zealand Dollar. Key levels for AUD/USD, AUD/JPY and AUD/NZD. Get your market update from @DanielGMoss here:https://t.co/cuxRxl5WaF https://t.co/pujrmqSxV7
  • Has anyone explained the risk of inflation on the markets in terms of tendies?
  • The US Dollar is trying to break higher versus ASEAN currencies. The Singapore Dollar, Philippine Peso, Thai Baht and Indonesian Rupiah are under pressure. Will follow-through last? Get your market update from @ddubrovskyFX here:https://t.co/JOWG9q01q0 https://t.co/j2ICxgrLa3
  • The commodity-sensitive Canadian Dollar may continue outperforming its major counterparts in the coming weeks. USD/CAD, CAD/CHF, CAD/JPY and EUR/CAD key levels to watch. Get your $USDCAD market update from @DanielGMoss here:https://t.co/9bkVXQuP5C https://t.co/cLNEG36mZ8
  • We just closed out the heaviest week of volume for the $SPY (US equities) since June and $TLT (Treasuries) since March 16
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/YjUfOUY3vU
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.30% 🇨🇭CHF: -0.41% 🇬🇧GBP: -0.62% 🇨🇦CAD: -1.12% 🇳🇿NZD: -1.87% 🇦🇺AUD: -2.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ZdHY0q1ocW
  • #Gold Price Forecast: Gold Breakdown Accelerates – $XAUUSD Bulls Done? - https://t.co/uATlmZg8g6 https://t.co/vIbhg5HOko
Indian Rupee Continues To Make Headway After RBI Surprisingly Holds Pat

Indian Rupee Continues To Make Headway After RBI Surprisingly Holds Pat

Oliver Morrison, Analyst

Talking Points

- Reserve Bank of India unexpectedly holds rates at 6.25%.

- Indian economy in flux after cash ban; RBI in wait-and-see mode.

- USD/INR on pace to close lower for seventh consecutive session.

India’s Rupee has continued to gain slightly on the Dollar after the Reserve Bank of India unexpectedly kept the benchmark repo rate unchanged at 6.25%. Economists had forecast the central bank to cut its main rate by at least 0.25 percentage points after last month’s shock demonetization move by the government threatens to curb consumer spending and crimp GDP growth.

At the beginning of November the Indian government pulled 86% of the country’s currency out of circulation, banning all 500 and 1,000 Rupee notes in an attempt to combat corruption, black money and terrorism. That decision heaped pressure on the Indian Rupee, which like many emerging market currencies was already suffering from the prospect of next month’s Fed rate hike sucking money away from emerging markets.

But the Rupee had risen to a three-week high versus the Dollar Tuesday, to around 67.90, on expectations of a rate cut coupled with Dollar weakness: the Greenback, while generally still strong, fell against most major currencies yesterday as fears of the impact of the Italian referendum result receded, helping other emerging-market currencies such as the Rupee, to make some advances.

Yet the RBI surprised markets and decided to hold pat on rates Wednesday. Governor Urjit Patel said the bank will await more clarity on the impact of the cash ban decision,though it did warn that the move could cause inflation to slow by 10-15 basis points in October-December. It also cut its growth forecast for gross value added – a key input of GDP – to 7.1% from 7.6% for the 2017 financial year. In October, the bank cut its benchmark repo rate to 6.25% from 6.50% – the lowest level for nearly six years – in an effort to boost the economy.

Chart 1: USD/INR 60-minute Timeframe (November 24 to December 7, 2016)

Indian Rupee Continues To Make Headway After RBI Surprisingly Holds Pat

In response to Wednesday’s decision, the Rupee continued to make smaller advances on the Dollar. Today the USDINR dropped to a low of 67.464 and was last seen at 67.475. This would mark the seventh session in a row in which the Rupee has closed stronger against the Dollar.

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at oliver.morrison@ig.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES