Rupee Opened Flat Amid Brent Crude’s Slump

Rupee Opened Flat Amid Brent Crude’s Slump

29 Jan 2019 09:09 AM

USD/INR – The Indian rupee opened little changed against the dollar after Brent crude suffered the biggest decline in a month, offsetting the expected month-end dollar demand and tepid risk appetite. The rupee opened at 71.14 versus its previous close of 71.10. The Brent crude oil dropped by almost 3% yesterday to close below $60 per barrel for the first time in two weeks. The selloff came amid an increase in U.S. crude drilling, which pointed to further increase in supplies at a time when there are worries of an economic slowdown. Apart from India’s interim budget on Friday, traders this week will eye the Federal Reserve policy outcome and trade talks between the U.S. and China. The two-day Fed meeting begins later today and high-level trade talks are scheduled for Wednesday and Thursday.

EUR/USD – The euro was a bit weaker at $1.1430, but not far off its highest level in more than a week. Traders believe recent weak economic readings on Germany and France, and the European Central Bank's dovish stance, are already priced into the euro. European Central Bank policymaker Pablo Hernandez de Cos said on Monday that the central bank might need to look into whether downside risks to growth it had so far deemed temporary were becoming more persistent. ECB President Mario Draghi warned last week that the growth dip could be bigger and longer than previously feared but stuck to his previous view that the slowdown was temporary and not the beginning of a recession.

GBP/USD – Sterling was slightly down at $1.3150, pulling back from 3-month highs. Later on Tuesday, lawmakers will debate and vote on British Prime Minister Theresa May's next steps, after the overwhelming rejection of her Brexit plan earlier this month, and have been proposing amendments seeking to shape the future direction of Brexit. Analysts expect sterling to remain volatile. Britain is set to leave the European Union on March 29, but the country’s members of parliament remain far from agreeing a divorce deal.

USD/JPY - The safe-haven yen firmed on Tuesday after the U.S. Justice Department charged China's Huawei Technologies Co Ltd with fraud, ratcheting up U.S.-Sino trade tensions and prompting investors to ditch risky assets. The United States on Monday charged China's Huawei Technologies Co Ltd, its chief financial officer and two affiliates with bank and wire fraud to violate sanctions against Iran in a case that has escalated tensions with Beijing. The yen, a currency sought out during times of market uncertainty or economic stress, advanced a little on the greenback to 109.20.

Currency Range for today

Currency Pair Upper Lower
USD/INR 70.95 71.45
EUR/INR 80.90 81.70
GBP/INR 93.10 93.90
JPY/INR 0.6480 0.6540 

Important data releases today

Date Time Ccy Event Forecast Previous
29-Jan-19 8:30 PM USD CB Consumer Confidence (Jan) 124.7 128.1








Date : 29-Jan-2019

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