India Rupee Opened Lower After US Shares Fall By Most In 9 Years

India Rupee Opened Lower After US Shares Fall By Most In 9 Years

28 Feb 2020 09:24 AM
 

USD/INR

India rupee opened lower at 71.75 against its last close of 71.55. The Indian rupee was seen trading lower against the dollar following yet another rout on Wall Street amid intensifying worries over the novel coronavirus. Increasing bets that the U.S. Federal Reserve may cut interest rates to help restore investor confidence could, however, cap the rupee’s losses. Ten-year US yield at 1.2590%, a near-record low.  Dollar index little changed at 98.47 after falling 0.5% yesterday. Benchmark Brent crude oil contract trading 1.3% lower at $51.50 per barrel, after falling nearly 2.3% yesterday.

EUR/USD

It’s a relatively busy day ahead on the economic calendar. Key stats include German unemployment and French consumer spending figures. Barring material deviation from 1st estimate numbers, 2nd estimate GDP figures out of France will likely have a muted impact on the EUR. Later in the European session, prelim Italian and German inflation figures for February will also likely have a muted impact on the EUR. Outside of the numbers expect news updates on the coronavirus to also provide direction. We’ve seen the Dollar take a hit as the coronavirus spreads across the U.S, leaving the U.S economy at risk of a slowdown. At the time of writing, the EUR was down by 0.03% at $1.0998.

GBP/USD

It’s another quiet day ahead on the economic calendar, with no material stats to provide the Pound with direction. We can expect the Pound to be under pressure as the markets shift attention to negotiations that commence next week. At the time of writing, the Pound was up by 0.04% to $1.2892.

USD/JPY

Economic data included, February inflation figures and January’s job to applications ratio, industrial production, and retail sales figures. According to consumer price figures released by the Ministry of Internal Affairs and Communication. The Ku-area of Tokyo saw the annual core rate of inflation eased from 0.7% to 0.5%, falling beyond a forecasted 0.6%. Prices for Education slid by 6%, with prices for fuel, light and water charges falling by 2.8%.  With inflationary pressures easing in February, jobs available also eased, as the jobs/applications ratio fell from 1.57 to 1.49. The ratio last stood at sub-1.50 levels back in May 2017, when the ratio had also stood at 1.49. The Japanese Yen was last seen at ¥109.638.

Important data releases today

Time

CCY

Event

Forecast

Previous

14.25

EUR

German Unemployment Change (Feb)

3K

-2.5K

17.00

INR

Deposit Growth

 

9.9%

17.00

INR

Bank Loan Growth

 

7.1%

17.30

INR

GDP Quarterly (YoY) (Q3)

4.7%

4.5%

17.30

INR

Infrastructure Output (YoY) (Jan)          

 

1.3%