Gold prices fell below the key $1,700 level on Thursday for the first time since July, as a rising dollar and expectations for aggressive interest rate hikes eroded its appeal
The U.S dollar surged to a 20-year high against a basket of currencies on Monday after Federal Reserve Chair Jerome Powell signaled interest rates would be kept higher for longer
Gold prices hit a more than one-month low on Monday, pressured by a robust dollar after Jerome Powell signalled continuing with an aggressive monetary policy to tame inflation
The economy is also enduring inflation pressure from a weak rupee, which for months has been trading close to 80 to the US dollar
The dollar held onto recent gains against the euro and sterling on Friday ahead of Federal Reserve Chair Jerome Powell's widely-anticipated speech, which traders hope will offer clues on the U.S. cent
The European Central Bank must keep raising interest rates even if a recession in Germany is increasingly likely, as inflation will stay uncomfortably high all through 2023
Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion
Economists in a Reuters poll lean toward a 50 basis-point increase with recession risks on the rise
The multi-pronged defence of the rupee is behind the sharp fall in RBI's long forward position
Spot gold fell for a fifth straight session, down 0.3% at $1,753.84 per ounce, which could be its longest losing streak since November 2021
Interest rates to go further up; strong dollar is likely to continue weighing on gold prices
Federal Reserve's July meeting suggested the rise in Central Bank's rates to tame inflation; gold dropped to its lowest in August, dollar rose 0.2 percent hitting a three-week high
LONDON/SYDNEY (Reuters) - World stocks hit seven-week highs on Monday, buoyed by recent strong corporate earnings and declining expectations for hefty interest rate rises, while the dollar slid against the yen as speculators exited suddenly unprofitable short positions.
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The rupee settled at 79.99 per dollar on Wednesday - a fresh closing low for the Indian unit versus the greenback
The Sri Lankan rupee has fallen over 66 per cent against the rupee in the last six months. It was trading at 2.7 per INR on January 19 and has fallen to 4.5 on July 19
Rupee which had closed at 79.64/$ at its previous close, slipped to a low of 79.92/$ intraday
The dollar resumed its relentless rise on Thursday, driven by both expectations for faster Federal Reserve policy tightening and safe-haven flows amid growing fears of a recession
The rupee has already lost 0.5% to the greenback this week, taking the depreciation for 2022 so far to 6.7%
Fears of a global recession weigh on the unit despite RBI measures to boost dollar inflow