Indian Rupee Opened Slightly Higher After Upbeat US Stocks, Crude Oil, NDF Eyed

Indian Rupee Opened Slightly Higher After Upbeat US Stocks, Crude Oil, NDF Eyed

16 May 2019 09:15 AM
 

USD/INR – The Indian rupee opened higher against the dollar after U.S. equities extended their gains, helping mitigate the impact from rising crude oil prices and a wider-than-expected trade deficit at home. The rupee opened at 70.27 versus the dollar compared with its previous close of 70.34. The primary reason for the rupee to open higher despite rising oil and the negative trade data is offshore dollar-selling interest, which has kept a lid on NDF’s (non-deliverable forward. Meanwhile, data released late yesterday showed that India’s trade gap widened to $15.3 billion in April from $10.9 billion in the previous month. The trade gap was wider than $13.7 billion in the same month last year and also exceeded the $13.5 billion.

EUR/USD – EUR/USD started the week with slight losses, but has steadied on Wednesday. Currently, the pair is trading at 1.1203, up 0.01% on the day. On the release front, first-quarter GDP reports for Germany and the euro zone matched their forecasts. The U.S. will release consumer spending reports for July, with the markets braced for weaker numbers.  Retail sales is projected slow to 0.2%, down from 1.6% in the previous release.  Core retail sales is projected to drop to 0.7%, compared to 1.2% in March. On Thursday, the euro zone releases trade balance, while the U.S. posts building permits, unemployment claims and the Philly Fed Manufacturing Index. There was positive news from first-quarter GDP data in the euro zone. German Preliminary GDP improved to 0.4%, after a flat zero reading in the third quarter. In the euro zone, Flash GDP also climbed to 0.4%, up from 0.2% in Q1.  EUR/USD was last trading at 1.1209.

GBP/USD – GBP/USD has posted considerable losses on Wednesday, as the pound continues to slide. In the North American session, the pair is trading at 1.2845, down 0.47% on the day. On the release front, there are no British events. In the U.S., consumer spending numbers disappointed, as retail sales and core retail sales both missed expectations. On Thursday, the U.S. releases three key indicators – building permits, unemployment claims and the Philly Fed Manufacturing Index. U.S. retail sales in April were weaker than forecast, but this didn’t help the struggling pound. The currency has lost 1.2% this week and is trading at its lowest level since mid-February. Retail sales declined 0.2%, after a strong gain of 1.6% in March. Core retail sales posted a small gain of 0.1%, much lower than the estimate of 0.7%. GBP/USD was last trading at 1.2850.

USD/JPY -  USD/JPY is almost unchanged on Wednesday. In the North American session, the pair is trading at 109.57, down 0.03% on the day. There are no major Japanese events. In the U.S., retail sales and core retail sales both missed expectations. On Thursday, the U.S. releases three key indicators – building permits, unemployment claims and the Philly Fed Manufacturing Index. U.S. retail sales in April were weaker than forecast, but the yen didn’t take advantage. Retail sales declined 0.2%, after a strong gain of 1.6% in March. Core retail sales posted a small gain of 0.1%, much lower than the estimate of 0.7%.  USD/JPY was last trading at 109.49

Currency range for today

Currency Lower Upper
USD/INR 70.00 70.50
EUR/INR 78.40 79.200
GBP/INR 89.90 90.70
JPY/INR 0.6385 0.6445
Important data releases today
Time Currency Event Forecast Previous
6.00 PM USD  Building Permits (Apr) 1.290M 1.288M
6.00 PM USD Philadelphia Fed Manufacturing Index 10.0 8.5