India Rupee Traded Lower On Risk-Off Tone; Virus Cases Jump

India Rupee Traded Lower On Risk-Off Tone; Virus Cases Jump

30 Mar 2020 09:19 AM


India rupee opened lower at 75.18 against its last close of 74.85. The Indian rupee weakened against the dollar as regional equities resumed their fall after the number of coronavirus infections surged around the world. In the U.S, cases have more than tripled in a week to about 140,000. The country now has the highest number of people infected. Dollar index up 0.2% at 98.60 after tumbling more than 4% last week. Benchmark Brent crude oil contract trading 6.7% lower at $23.28 per barrel, hovering near its lowest level since November 2002.


It’s a relatively quiet day ahead on the Eurozone economic calendar. Prelim March inflation figures are due out of Spain and Germany. Following the ECB Economic Bulletin, released last week, the markets are prepped for softer inflationary pressures. The numbers are therefore likely to take a backseat as the majors respond to the updated coronavirus figures from the weekend. There was certainly nothing positive to support a continuation of last week’s rebound. At the time of writing Euro was last seen trading at $1.1079 against the dollar.


It’s also a relatively busy week ahead on the economic calendar. Barring material deviation from prelims, however, we would expect 4th quarter GDP numbers on Tuesday to have a muted impact on the Pound. Finalized Manufacturing and Services PMIs for March that are due out on Wednesday and Friday will influence, however. Expect March Construction PMI numbers due out on Thursday to also garner some interest. The Services PMI on Friday will have the greatest impact on the Pound on the data front. Whether it can check the Pound’s recovery remains to be seen, however. Much will depend on how successful the government has been in containing the spread of the coronavirus. The GBP/USD pair was last seen trading at $1.2362.


USD/JPY continues to trade in the red as the rate cut by China has failed to bring cheer to the equity markets. The currency pair is currently trading near 107.25, representing a 0.60% loss on the day, having hit a session low of 107.12 a few minutes before press time. The futures on the S&P 500 is keeping losses and is currently reporting a 1% decline on the day. Stocks in Asia are also feeling the pull of gravity with Japan's Nikkei index shedding 3.4%. As a result, the anti-risk yen remains better bid. The pair may decline further on fears the Japanese government may declare a state of emergency due to the worsening situation on the coronavirus front.                             

Important data releases today








Pending Home Sales (MoM) (Feb)