India Rupee Likely marginally higher Amid Equity Rebound

India Rupee Likely marginally higher Amid Equity Rebound

15 May 2019 08:47 AM

The Indian rupee is expected to open marginally higher against the dollar after regional equities recovered from recent losses, helping alleviate concerns over the biggest increase in Brent crude in three weeks. The rupee is expected to open around 70.32-70.37 in early trades versus the dollar compared with its previous close of 70.4350.

A day after suffering the biggest decline in four months, the S&P 500 Index and the Dow Jones Industrial Average added 0.8% on Tuesday. The rebound in risk appetite spread to Asia, with benchmark indexes of China, Hong Kong, and South Korea advancing up to 0.8%.

The recovery was likely based on expectations that the U.S. and China would resolve their trade conflict. The likelihood of an agreement received a boost yesterday after President Donald Trump reportedly said that talks with China had not broken down and he has a “very good” dialogue ongoing with China. A report added that Trump called the trade conflict with China “a little squabble” on account of the U.S. being treated unfairly by China for “many, many decades.”

Earlier in the day, Trump said on Twitter that the U.S. will make a deal “when the time is right” and once again touted his excellent relationship with Chinese President Xi Jinping.