Commerzbank analysts highlight that USD/INR fell 0.5% to 95.71 and is down 0.3% on the week, as the Reserve Bank of India (RBI) intervenes in spot markets and tightens gold import rules.
Philip Wee at DBS highlights uncertainty around new Fed Chair Kevin Warsh’s approach, noting President Trump’s preference for lower rates and Warsh’s reform-oriented stance.
According to the Iranian Student News Agency (ISNA), a senior Iranian diplomat said that the nuclear issue and highly enriched uranium reserves will be discussed with the United States (US) in 60-day negotiations in exchange for the lifting of sanctions and unfreezing of assets.
European Central Bank (ECB) policy governing council member and Governor of the Bank of Greece, Yannis Stournaras said during the European trading session on Monday that the closure of the Strait of Hormuz, a critical passage to almost 20% of global energy supply, may have secondary effects on wages
Commerzbank’s FX Research team, including Charlie Lay and Dr. Henry Hao, notes that Brent Oil has been volatile as markets react to prospects of a US-Iran agreement and the continued closure of the Strait of Hormuz.
The Indian Rupee (INR) opens on a strong note against the US Dollar (USD) at the start of the week. The USD/INR pair extends its losing streak for the fourth trading day on Monday, sliding to near 95.20, the lowest level seen in almost two weeks.
USD/JPY gains ground after opening at a bearish gap, remaining in the negative territory and trading around 158.90 during the Asian hours on Monday. The pair maintains its downward momentum as the Japanese Yen (JPY) gains support from falling oil prices.
US Secretary of State Marco Rubio said that the US will give diplomacy every chance with Iran but will pursue other means if a good deal cannot be reached, while describing the current framework as solid, Reuters reported on Monday.
Gold prices rose in India on Monday, according to data compiled by FXStreet.
Most Asian stocks rally broadly at the start of a new week as developments over the weekend fuel hopes for a potential deal to end a nearly three-month-long Iran war and boost investors' appetite for riskier assets.
US President Donald Trump’s chief economic adviser at the White House, Kevin Hassett, said on Monday that he is confident that an eventual drop in oil prices will create space for the US Federal Reserve (Fed) to cut the interest rates.
Reserve Bank of India (RBI) Governor Sanjay Malhotra said that the Indian Rupee (INR) may now be undervalued following its recent depreciation, Reuters reported on Monday.
NZD/USD depreciates after opening at a higher level from the previous close, still remaining in the positive territory and trading around 0.5870 during the Asian hours on Monday.