Indian Rupee Opened Higher, Following MPC Interest Rate Decision

Indian Rupee Opened Higher, Following MPC Interest Rate Decision

04 Dec 2020 10:05 AM
 

USD/INR

Indian rupee opened higher at 73.81 compared to 73.90 in the previous session following the Monetary Policy Committee’s interest rate decision. Market participants are closely watching the Monetary Policy Committee’s statements and RBI Governor Shaktikanta Das’s post-policy comments for any cues on the Central Bank’s stance on the Rupee. Declining Dollar ahead of the U.S. monthly non-farm payrolls report is expected to have a limited impact on the Rupee amid RBI’s current stance on the currency rates. It’s a busy day ahead for the U.S Dollar on the economic calendar. Nonfarm payroll and unemployment figures for November are due out later today. Dollar index extended its decline and was at 90.70. Ten-year US yield was at 0.91%. Brent crude was up 1.7% at $49.50 per barrel, hovering near its nine-month highs.

EUR/USD

It’s an uneventful day ahead for the Euro on the economic calendar. German factory orders for October and construction PMI figures for November are due out later today. October’s factory orders are expected to have the greatest influence. Following October and November’s Manufacturing PMIs, the markets will be looking for an increase in demand. However, Coronavirus containment measures may weigh on demand. Brexit and vaccine updates will continue to provide direction. At the time of writing, the Euro was up by 0.02% to $1.2142.

GBP/USD

It’s a relatively quiet day ahead on the economic calendar. Construction PMI figures for November are due out but are not expected to have much influence. Brexit will be the key driver for the day. At the time of writing, the Pound was down by 0.05% to 1.3445. 

USD/JPY

It is a quiet day ahead for Yen on the economic calendar. Yen traded higher in the early session amid a lack of data from Japan and ahead of US Nonfarm payroll and unemployment data today. At the time of writing, Yen was up 0.03% to $103.87.

Important data releases today

Time

CCY

Event

Forecast

Previous

11:45

INR

Cash Reserve Ratio

3.0%

3.0%

11:45

INR

Interest Rate Decision

4.0%

4.0%

11:45

INR

Reverse REPO Rate

3.35%

3.35%

15:00

GBP

Construction PMI (Nov)

52.0

53.1

17:00

INR

FX Reserves, USD

-

575.29B

19:00

USD

Nonfarm Payrolls (Nov)

469K

638K

19:00

USD

Unemployment Rate (Nov)

6.8%

6.9%