Rupee at 1-Month Low On Importers' Dollar Bids

Rupee at 1-Month Low On Importers' Dollar Bids

15 Jan 2019 02:26 PM

USD/INR – Rupee opened higher at 70.7750 after India’s consumer inflation eases to 18-month low - well below RBI’s target of 4%. Rupee fell against the dollar in morning trade on importers’ dollar bids and with investors’ diminishing risk appetite before bouncing back broadly due to dollar’s decline against major currencies and regional peers. However, rupee again fell to one-month low of 71.1075 on importers’ bids in the afternoon trade.  India’s trade balance data is awaited later today.

EUR/USD – Euro traded marginally lower against the dollar at $1.1460. Data released yesterday showed Euro zone industrial output fell in November by more than expected. This confirms the series of weak national data, raising concerns about the bloc’s growth in the final quarter of the year. Two out of three German companies favor ECB rate hike, as per a survey, despite a clouded growth outlook. Euro zone trade balance data for November is set to release today. Daily pivot first support is at 1.1400.

GBP/USD – Sterling rose to $1.2915 as it braced up for a showdown in Parliament today over the government’s Brexit plan. Pound was last trading at $1.2875. Yesterday, May urged lawmakers to take a second look at her deal ahead of a vote that looks set to reject the agreement. There seems to be a wide range of outcomes, from a disorderly exit from the EU to Brexit reversal. Daily pivot first support is at 1.2800.

USD/JPY - The yen weakened against the greenback to trade at 108.65. USD/JPY is higher on Nikkei and US bond yields bounce. The yen has been gaining versus the dollar in past weeks on safe-haven buying on concerns of global economic slowdown and U.S. government shutdown. USD/JPY is expected to stay within a range of 107.90 – 108.82 today.


Important data releases today

Date Time Cur. Event Actual Forecast Previous
14-Jan-19 5:30 PM INR CPI (YoY) 2.19% 2.20% 2.33%
15-Jan-19 3:30 PM EUR Trade Balance (Nov) - 13.7B 14.0B
15-Jan-19 6:15 PM INR Trade Balance - - 16.67B