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Yahoo
03-07-2025
- Business
- Yahoo
Inflows boost rupee to one-month high; trade deal optimism aids sentiment
By Jaspreet Kalra MUMBAI (Reuters) - The Indian rupee touched its strongest level in a month on Thursday, lifted by dollar sales from foreign banks and cutting of bearish bets on the local currency, while optimism surrounding a U.S.-India trade deal also aided sentiment. The rupee rose to a peak of 85.20, its best level since late May, before ending the session at 85.31, up 0.4% on the day. Dollar sales from foreign banks in the latter half of Thursday's session boosted the rupee, with the rise above 85.40 also triggering stop-losses on some wagers against the currency, traders said. Asian currencies mostly rose, while the dollar index remained steady ahead of a key U.S. labour market report. Most stock indices in Asia also gained on Thursday, after U.S.-Vietnam trade discussions raised the possibility of breakthroughs for other countries in the region ahead of the July 9 tariff deadline. India's benchmark equity indexes though closed marginally lower. U.S. and India trade negotiators were pushing on Wednesday to try to land a tariff-reducing deal ahead of President Donald Trump's July 9 negotiating deadline, per sources familiar with the talks. "Given the U.S.-Vietnam trade deal and the looming July 9 deadline for the reciprocal tariff pause, markets are also alert to similar trade announcements with India and the European Union," DBS said in a Thursday note. Traders reckon a trade deal with India could push the rupee above 85, but further gains would depend on foreign inflows and if the central bank steps in shore up its FX reserves via dollar purchases. On the day, investors will also keep an eye on the U.S. non-farm payrolls report for cues on the future path of the Federal Reserve policy rates. Economists polled by Reuters expect that the U.S. economy added 110,000 jobs in June, while the unemployment rate ticked up to 4.3%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
03-07-2025
- Business
- Reuters
Inflows boost rupee to one-month high; trade deal optimism aids sentiment
MUMBAI, July 3 (Reuters) - The Indian rupee touched its strongest level in a month on Thursday, lifted by dollar sales from foreign banks and cutting of bearish bets on the local currency, while optimism surrounding a U.S.-India trade deal also aided sentiment. The rupee rose to a peak of 85.20, its best level since late May, before ending the session at 85.31, up 0.4% on the day. Dollar sales from foreign banks in the latter half of Thursday's session boosted the rupee, with the rise above 85.40 also triggering stop-losses on some wagers against the currency, traders said. Asian currencies mostly rose, while the dollar index remained steady ahead of a key U.S. labour market report. Most stock indices in Asia also gained on Thursday, after U.S.-Vietnam trade discussions raised the possibility of breakthroughs for other countries in the region ahead of the July 9 tariff deadline. India's benchmark equity indexes though closed marginally lower. U.S. and India trade negotiators were pushing on Wednesday to try to land a tariff-reducing deal ahead of President Donald Trump's July 9 negotiating deadline, per sources familiar with the talks. "Given the U.S.-Vietnam trade deal and the looming July 9 deadline for the reciprocal tariff pause, markets are also alert to similar trade announcements with India and the European Union," DBS said in a Thursday note. Traders reckon a trade deal with India could push the rupee above 85, but further gains would depend on foreign inflows and if the central bank steps in shore up its FX reserves via dollar purchases. On the day, investors will also keep an eye on the U.S. non-farm payrolls report for cues on the future path of the Federal Reserve policy rates. Economists polled by Reuters expect that the U.S. economy added 110,000 jobs in June, while the unemployment rate ticked up to 4.3%.
The National
28-05-2025
- Business
- The National
UAE Central Bank fines two foreign bank branches Dh18.1m for breaching anti-money laundering rules
The UAE Central Bank has fined two branches of foreign banks operating in the country a cumulative fine of Dh18.1 million ($4.9 million) for breaching anti-money laundering regulations, as the fight against illegal financial activity continues. The regulator imposed a fine of Dh10.6 million on the first bank and Dh7.5 million on the second bank, it said in a statement on Wednesday, without naming the lenders. Penalties were slapped on the branches of foreign lenders for 'violations and failures' to comply with the anti-money laundering, combating the financing of terrorism and illegal organisations framework, and related regulations, the CBUAE statement added. The fines were imposed based on the findings of examinations the banking regulator has conducted, it said. 'The UAE Central Bank, through its supervisory and regulatory mandates, endeavours to ensure that all banks and their staff abide by the UAE laws, regulations and standards established by it to maintain transparency and integrity of the financial transactions and safeguard the UAE financial system,' the regulator said in the statement. An exchange house was fined Dh200 million by the UAE Central Bank last week for breaching anti-money laundering regulations. A financial sanction of Dh500,000 was also imposed on a branch manager, who has also been prohibited from holding any position within any licensed financial institutions in the UAE, the regulator said. The Emirates has made significant strides in the fight against financial crime in recent years. Effective policies on money laundering and combating the financing of terrorism are key to the integrity and stability of the international financial system and the economies of nations, according to the International Monetary Fund. Last year, the UAE announced a nationwide action plan aimed at boosting its fight against illicit financial activity by introducing the 2024-27 National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing. The strategy has 11 goals outlining the 'legislative and regulatory reforms the UAE is taking to prevent the impact of illegal activities on society', and was developed by the General Secretariat of the National Committee using World Bank Group methodology to ensure it meets international standards. In August last year, the government amended its laws on anti-money laundering, and the financing of terrorism and illegal organisations. A National Committee for Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations was formed as a result. In 2021, the government founded an Executive Office for Anti-Money Laundering and Counter-Terrorism Financing after passing an anti-money laundering and terrorism financing law in 2018.
Reuters
27-05-2025
- Business
- Reuters
Rupee slips on month-end importer dollar bids, weak equities
MUMBAI, May 27 (Reuters) - The Indian rupee weakened modestly on Tuesday, weighed down by month-end dollar demand from local companies and foreign banks, likely on behalf of custodial clients, while a fall in equities also dented sentiment. The rupee was down 0.2% at 85.27 as of 10:30 a.m. IST. India's benchmark equity indexes fell about 0.6% in early trading, tracking losses in Asian stocks with MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab slightly in the red. Importers have been covering dollar liabilities regularly as there is some concern that a modest reversal in the dollar's trajectory could push the rupee towards 86, a trader at a Mumbai-based bank said. The dollar-rupee daily fix, meanwhile, was quoting at a slight discount, the trader said, signalling heightened appetite to sell dollars at the daily reference rate published by the country's central bank. Asian currencies were mixed with the offshore Chinese yuan down 0.1% at 7.1839 while the Korean won rose 0.2%. The dollar index was a tad higher at 99.1. Persistent weakness in the dollar - to the tune of about 9% against major peers over 2025 so far - has been a tailwind for emerging market currencies across the board. Worries over U.S. trade policies and fiscal health have dented investor appetite for U.S. assets with analysts pointing out a broad pickup in hedging against dollar weakness. While the rupee has underperformed its regional peers over May, traders reckon that the currency should hold a slight upward bias in the near term. "We see USD/INR trading in the 84-86 range in the near term as markets await the India-U.S. trade deal," Kotak Mahindra Bank said in a note.
Yahoo
19-05-2025
- Business
- Yahoo
Rupee seen little changed; traders eye flows, US-India trade talk updates, yuan
By Nimesh Vora MUMBAI (Reuters) -The Indian rupee may open little changed on Monday, with traders watching flows, updates on the U.S.-India trade talks, and the Chinese yuan's trajectory following last week's turbulence. The 1-month non-deliverable forward indicated that the rupee will open barely changed from 85.5050 against the U.S. dollar on Friday. The rupee moved in a broad range of 84.62 to 85.72 last week, before posting a weekly decline despite the truce between India and Pakistan. Bankers attributed the weakness to persistent dollar demand stemming from near-term payment requirements and a one-off outflow facilitated by foreign and state-owned banks. The rupee's near-term outlook is clouded after last week's broad two-way price action, said a currency trader at a private bank. "The 85.80-86.00 level will prove to be a formidable resistance (for dollar/rupee pair) and I am inclined to sell there more than buying on weakness." Besides flows, interbank traders will track headlines on the U.S.-India trade agreement. The lingering uncertainty on that front has weighed on the rupee's performance, MUFG Bank said last week. Meanwhile, the offshore Chinese yuan was marginally weaker, having inched up last week. The U.S. and China agreed to a deal last week to slash reciprocal tariffs, boosting the yuan and lifting risk appetite. The dollar advanced against its major peers last week. It was little changed on Monday. Moody's downgrade of the U.S. credit rating - the last of the major ratings agencies to slash the rating - did not have much of an impact on the dollar or U.S. Treasury yields. The rating agency cited rising debt and interest for the rating change. The U.S. fiscal challenges is a surprise to no one, ANZ Bank said in a note. KEY INDICATORS: ** One-month non-deliverable rupee forward at 85.66; onshore one-month forward premium at 15.5 paise ** Dollar index little changed at 100.83 ** Brent crude futures down 0.1% at $65.3 per barrel ** Ten-year U.S. note yield at 4.49% ** As per NSDL data, foreign investors bought a net $671.4 mln worth of Indian shares on May 15 ** NSDL data shows foreign investors sold a net $86 mln worth of Indian bonds on May 15 Sign in to access your portfolio
