BNY’s Bob Savage reports India is considering emergency steps to protect foreign exchange reserves as higher Oil prices widen the current account deficit. Measures under discussion include fuel price hikes, import restrictions on Gold and electronics, and tighter hedging rules.
The Canadian Dollar (CAD) accelerates its decline against the US Dollar (USD) on Tuesday, with the USD/CAD pair rallying above 1.3700 and set to test its highest levels in nearly a month, at 1.3714.
Commerzbank strategists highlight concerns from India’s jewellery industry about a potential further setback in Indian Gold jewellery demand, which is important for the physical Gold market.
The USD/JPY pair trades 0.26% higher to near 157.60 during the European trading session on Tuesday. The pair gains as the US Dollar (USD) outperforms its peers due to renewed tensions between the United States (US) and Iran.
Brown Brothers Harriman’s (BBH) Elias Haddad notes that the US Dollar (USD) is firmer as confidence in a swift reopening of the Strait of Hormuz fades, with USD outperforming most major currencies.
Gold (XAU/USD) shows moderate losses on Tuesday, trading a few pips below the $4,700 level at the time of writing after failing to find acceptance above $4,770 earlier on the day.
Brown Brothers Harriman (BBH) Elias Haddad notes that USD/JPY has rebounded toward 157.75 after testing 155.00, with 160.00 described as a key line in the sand.
USD/CHF trades around 0.7815 on Tuesday at the time of writing, up 0.46% on the day, supported by renewed demand for the US Dollar (USD) amid fresh geopolitical tensions in the Middle East.
The Indian Rupee (INR) slumps to a fresh all-time low against the US Dollar (USD) on Tuesday.
South Africa Manufacturing Production Index (YoY) up to 0.9% in March from previous -2.8%
TD Securities economists highlight that higher US Treasury yields followed headlines on Middle East tensions and upcoming supply, with attention now turning to April United States (US) Consumer Price Index (CPI).
United States NFIB Business Optimism Index below expectations (96.1) in April: Actual (95.9)
