India Rupee Opened Higher On Broad Dollar Decline

India Rupee Opened Higher On Broad Dollar Decline

13 Jul 2020 10:12 AM
 

USD/INR

India rupee opened higher at 75.15 against its last close of 75.20. The Indian rupee traded higher against the dollar, tracking a broad decline in the U.S. currency ahead of a slew of economic data releases. In India, the total number of cases climbed to more than 875,000. Large cities including Bengaluru, Pune, and Patna have been put under a complete lockdown to contain the spread of the virus. Dollar index down 0.2% at 96.48, adding to last week’s 0.5% fall. Benchmark Brent crude oil contract 0.7% lower at $42.94 per barrel, after climbing over 2% on Friday.

EUR/USD

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction. A lack of stats leaves the EUR in the hands of market risk appetite on the day. With the ECB in action this week, last week’s industrial production figures will give the ECB a reason to stand pat on policy. While an expected hold by the ECB is EUR positive, COVID-19 updates and any chatter from the U.S administration will also need monitoring. At the time of writing, the EUR was up by 0.11% to $1.1312.

GBP/USD

It’s also a particularly quiet day ahead on the economic calendar. There are no material stats due to provide the Pound with direction. A lack of stats leaves the Pound in the hands of Brexit and market risk sentiment. Late in the day, BoE Governor Bailey is due to speak and could give some insight into what lies ahead on the monetary policy front. At the time of writing, the Pound was up by 0.04% to $1.2627.

USD/JPY

In a statement released on Monday, the Bank of Japan (BOJ) announced Seiichi Shimizu, currently head of its markets department, will become head of the bank's department overseeing monetary policy drafting, per Reuters. This move is seen to curb the coronavirus impact on the economy, as Shimizu has played a key role in calming pandemic-ravaged markets. The BOJ eased monetary policy in March and April, easing corporate funding strains triggered by the outbreak. It is expected to keep policy steady at a two-day rate review ending on Wednesday. Divided between risk-on mood and broad US dollar weakness, USD/JPY trades flat around 106.80, awaiting a fresh direction. The above announcement had virtually no impact on the yen markets.

Important data releases today

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CCY

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Forecast

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21:00

GBP

BoE Gov Bailey Speaks