India Rupee Opened Lower Amid Equity Pullback; Dollar Rebounds

India Rupee Opened Lower Amid Equity Pullback; Dollar Rebounds

22 Oct 2020 10:08 AM
 

USD/INR

India rupee opened lower at 73.76 against its last close of 73.58. The Indian rupee weakened against the dollar tracking the decline in regional currencies and equities.  U.S. elections and fiscal stimulus developments remained the main area of focus for investors. Yesterday, the currency dropped about 12 paisa after opening on a positive note. Traders attributed dollar bids by three state-owned banks for the decline. Traders continued to eye updates on the U.S. fiscal stimulus. An agreement among U.S. lawmakers remained elusive despite optimistic remarks a day earlier by the White House and a leading member of the Democratic Party. President Donald Trump continued to blame the Democratic Party for the delay. Dollar index up 0.2% at 92.81, rebounding from yesterday’s 0.5% fall. It slipped to a seven-week low yesterday. Benchmark Brent crude oil contract 0.5% lower at $41.54 per barrel, extending yesterday’s more than 3% fall.

EUR/USD

It’s a relatively quiet day ahead on the economic calendar. Key stats include consumer confidence figures for Germany, France, and the Eurozone. With a 2nd wave of the COVID-19 pandemic hitting the EU, and France in particular, expect sensitivity to the numbers. Any material decline in confidence will raise further uncertainty over a consumption-driven economic recovery. Away from the economic calendar, expect Brexit, COVID-19, and U.S politics to remain key drivers. At the time of writing, the EUR was down by 0.12% to $1.1847.

GBP/USD

It’s also a relatively quiet day ahead on the economic calendar. CBI Industrial Trend Orders are due out later this afternoon. As the Brexit stalemate continues, we can expect some market sensitivity to today’s figures. The BoE has seen negative rates as a possible way forward, leaving economic data to do the talking. Away from the economic calendar, expect any updates on Brexit and sentiment towards COVID-19 to also influence. At the time of writing, the Pound was down by 0.11% to $1.3134.

USD/JPY

USD/JPY retraces the biggest losses in two months from 104.34. S&P 500 Futures, Nikkei 225 drop around 0.50%, stocks in Pacific are also down amid fresh jitters concerning the US election. The haven demand for the US dollar is back in vogue. The Japanese macroeconomic calendar has been quite scarce ever since the week started. This Thursday, the country will publish the All Industry Activity Index for August, previously at 1.3%. At the time of writing, the Japanese Yen was down by 0.06% ¥104.65 against the U.S Dollar.

Important data releases today

Time

CCY

Event

Forecast

Previous

14:55

GBP

BoE Gov Bailey Speaks

 

 

18:00

USD

Initial Jobless Claims

860K

898K

19:30

USD

Existing Home Sales (Sep)

6.30M

6.00M