Forex

The Indian rupee strengthened 17 paise to 95.56 against the U.S. dollar in early trade on Thursday as the greenback weakened after the U.S. Treasury said it would double buybacks of longer-dated Treasury bonds to USD 4 billion. The dollar also came under pressure after the Federal Reserve’s July meeting minutes showed markets had scaled back expectations of further policy tightening. In the interbank market, the rupee opened at 95.57 and then moved up to 95.56.

The dollar index fell to a two-month low after softer U.S. economic data led markets to scale back expectations for further Federal Reserve rate hikes. The euro rose to a two-month high of about $1.1614 against the dollar. The yen also edged firmer to around 159.15 per dollar, reflecting a repricing of the rate outlook.

The Bank of Japan confirmed it coordinated with the United States to intervene in the foreign-exchange market by buying yen. The yen surged against the dollar, rising as much as 5% over three days and touching a three-month high of 155.20 before easing back to around 157.35. The dollar index rebounded from its lows, while the euro and sterling were largely steady.

BirlaNu Limited has increased the standby letter of credit (SBLC) limit for its wholly owned subsidiary BirlaNu International GmbH from EUR 10.73 million to EUR 20 million for 12 months, with ICICI Bank’s UK branch in Germany as the issuing bank. The SBLC will be used to secure the German unit’s working-capital loan facilities, and carries a 0.53% annual service fee. The move reflects stronger group-level funding support for its European operations as part of routine cross-border financing, with no direct link to pricing in traditional assets and only a mild rise in euro-denominated credit tool usage implied.

The US and Japan’s central banks jointly intervened in foreign-exchange markets last week, buying yen after it slid to a fresh 40-year low against the dollar. The move marked the first coordinated intervention by the two countries since 2011, following the earthquake and tsunami in eastern Japan. The Bank of Japan raised its policy rate to 1% in June, its highest level since September 1995, while the Federal Reserve’s benchmark rate stands at 3.50%–3.75%. The intervention directly targeted the yen’s exchange rate, providing short-term support for the currency.

Japan’s finance ministry and the U.S. Treasury have confirmed coordinated intervention to support the yen, with Japan suspected of deploying $58.97 billion in a single day to buy the currency. U.S. officials also signaled they could enter the market, and a photo showed Treasury Secretary Scott Bessent with a handwritten note reading, “Buy Japanese Yen (JPY) $5–10 bil.” Combined with the Bank of Japan’s June rate increase to a 31-year high of 1%, the steps provide tangible support for the yen. The move directly targets FX markets, with the yen and the dollar/yen pair at the center of the impact.

Fortescue (FMG) reported FY26 full-year iron ore C1 cash costs of US$18.74/wmt, above its prior guidance range of US$17.50–US$18.50/wmt. It also lifted FY27 cost guidance to US$20.50–US$21.75/wmt, representing a 13% year-on-year increase. The cost increase was mainly driven by higher diesel prices and a stronger AUD:USD exchange rate. The currency move directly raises operating costs denominated in U.S. dollars and puts pressure on the Australian dollar exchange rate.

Nigeria’s naira closed at N1,368.22/$1 at the official market, weakening by N1.49 (0.11%) from the previous session. In the parallel market it fell to N1,405/$1, while GTBank’s retail rate rose to N1,374/$1. Central bank data showed interbank FX turnover increased to $58.99 million.

A handwritten note seen during the Camp David U.S.-Japan-South Korea summit indicated U.S. Treasury officials were considering buying $5 billion to $10 billion worth of Japanese yen. The photo was made public at 11:33 ET, and the dollar fell about 0.8% versus the yen over the next roughly 45 minutes, sliding from 158.9 to 157.6. The disclosure was described as the first U.S. signal of potential unilateral yen intervention since the 2011 G7 coordinated action, stoking expectations for a stronger yen.

Hexaware reported fiscal 2024 Q2 revenue of $405.4 million, up 6.1% year on year, with EBIT margin rising to 13.6%. Net profit fell 21.1% from a year earlier to $34.9 million. The company said it booked an $8 million foreign-exchange hedge loss after a sharp appreciation of the Indian rupee against the U.S. dollar. The results highlight how INR/USD swings can affect earnings stability for export-oriented Indian IT services firms.