India Rupee Opened Flat; Dollar Extends Losses, Moody’s Downgrades India

India Rupee Opened Flat; Dollar Extends Losses, Moody’s Downgrades India

02 Jun 2020 10:09 AM


India rupee opened little changed at 75.56 against its last close of 75.54. The Indian rupee trade little changed against the U.S. currency amid the dollar index falling to more-than-10-week lows and Moody’s Investors Service lowering India’s credit rating. Last night, Moody’s cut India’s long-term credit rating by a notch to the lowest investment grade, citing challenges for the policymakers through a period of weak growth amid worsening fiscal situation and financial sector stress. Dollar index little changed at 97.89 after falling 0.5% yesterday to lowest in over two months. Benchmark Brent crude oil contract 0.4% higher at $38.48 per barrel, hovering near its highest level in just less than two months.


It’s a relatively quiet day ahead on the Eurozone economic calendar. Spanish unemployment change figures are due out later this morning. While the markets will be looking for a materially lower number of unemployed, the numbers are unlikely to have a material impact on the majors. The focus on the day will remain on chatter from Beijing and Washington, COVID-19 updates and the news wires. As we have seen in recent weeks, the markets will take just about any positive news to support another leg up. With so much uncertainty and rising global tensions, however, it could be a testy day ahead. Euro was last seen at $1.1126 against the dollar.


GBP/USD recedes to 1.2485, down 0.07%, while heading into the London open on Tuesday. The pair’s recent pullback could be traced from the US dollar’s bounce off multi-day low. Even so, the last full round of Brexit talks, starting today, will be the key to determine near-term Cable moves. While the week-long Brexit negotiations will keep the GBP/USD traders busy looking for fresh details, updates concerning the protests in the US as well as the US-China tussle might also offer additional clues to the pair. The pair was last seen at $1.2479.


Japan's 2.7% growth rebound forecast for 2021, but the aggregate economic output will still remain about 5% below the pre-coronavirus baseline. Japan's real GDP forecast to contract by 6.5% in 2020. Separately, Japanese Finance Minister Taro Aso was reported by Reuters, saying that the government has no immediate plan to issue 'corona-bonds,' or bonds specially issued to cover costs to combat coronavirus pandemic. The pair was last seen at 107.72 against the Dollar.

Important data releases today








No material stats are due to be released today.