TODAY Wednesday,3rd  September , 2025

USD/INR:

The Indian rupee rose on Wednesday, defying tepid sentiment across Asian markets, with traders noting that the bearish bias in options has faded.The rupee was quoting at 88.00 to the U.S. dollar, up 0.18% on the day. The local currency advanced despite weakness in Asian peers and a rally in the dollar index to 98.50.

Bankers noted that the options market is signalling less near-term downside pressure on the rupee after it breached the 88 level last Friday.In particular, the 1-month USD/INR risk reversal, which had shown dollar calls trading at a premium to puts when the rupee breached the 88 mark, has now flattened, indicating lower demand for downside hedges on the currency.

MAJOR WORLD CURRENCIES:

USD:

 The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, drifts higher near 98.40 during the early Asian trading hours on Wednesday. The US JOLTS Job Openings and the Fed Beige Book will be released later on Wednesday. 

The cautious mood in the financial markets and the ongoing Russia-Ukraine conflict boost the safe-haven flows, supporting the DXY. "Negative developments outside of the U.S. are probably what's driving the market today, in terms of dollar strength," said Vassili Serebriakov, FX strategist at UBS in New York.

Nonetheless, the prospect of the US Federal Reserve (Fed) rate cut this month, along with the dovish remarks from Fed officials, might undermine the US Dollar. Money markets are currently pricing in nearly a 91% odds that the Fed will cut rates by 25 basis points (bps) in the September meeting, up from an 85% possibility last week, according to the CME FedWatch tool.

GBP/USD:

The Pound Sterling (GBP) extends losses and trades cautiously near an almost four-week low around 1.3370 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair faces selling pressure as the British currency underperforms its peers, following a sharp sell-off in United Kingdom (UK) gilts. The 30-year UK gilt yields surge to near 5.72%, the highest level seen since 1998.

A sharp downtrend has been observed in long-dated bonds across the globe, indicating fears among financial market participants about mounting government debt borrowings. Market experts believe that soaring Bond yields suggest that investors expect governments to be unwilling to address piling fiscal deficit issues.

EUR/USD:

The EUR/USD pair is heading south for the second consecutive day on Wednesday, trading at 1.1620 at the time of writing. Renewed concerns about the increasing fiscal deficits in major economies have triggered a sell-off in bond markets, steepening yield curves, and driving investors towards safe assets like the US Dollar and Gold.

The German 30-year yield has risen 10 basis points over the last three days, while French long-term yields rose to 4.50%, their highest level since 2009, after having rallied sharply in August amid the country's uncertain political outlook.

Gold:

Gold (XAU/USD) retreats on Tuesday after briefly surging to a fresh all-time high of $3,508 per ounce during the Asian session as a rebound in the US Dollar (USD) and Treasury yields triggered mild profit-taking.

At the time of writing, the precious metal is trading near $3,496 during the American session, extending a six-day winning streak. Despite the short correction earlier in the day, underlying demand remains strong on the back of safe-haven flows and expectations that the Federal Reserve (Fed) will lower the interest rates at its September 16-17 monetary policy meeting.

The metal’s rally to record highs has been driven by persistent weakness in the Greenback, concerns over the Fed’s independence following political criticism, and heightened geopolitical risks. Uncertainty over global trade policy, particularly around US tariffs, has also boosted demand for Gold as a hedge against economic and political instability. Investors continue to favor bullion in an environment where both growth risks and monetary easing prospects dominate the outlook.

USD/INR Cash/Tom/Spot Levels: (in Paisa)

(Updated as on 2^nd September , 2025 @ 09.00am)

 Cash/Tom:   0.10/1.00          Cash/Spot:0.35/4.00

 Tom/Spot:   0.25/3.00           Spot/Next: 0.10/1.00

Cash Date:    02.09.2025

Tom Date:      03.09.2025

Spot Date:     04.09.2025

Outlook for the day 2^nd  September: Rupee expected to trade in range of 88.00 to 88.15

MAJOR WORLD CURRENCIES: as on (2^nd September, 2025)

Foreign Currencies

Updated: 17:30 hrs. (12:00 GMT) on 2^nd  September 2025

Precious Metals

Updated: 17:30 hrs. (12:00 GMT) as on 2^nd September 2025

Stock Indices

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