Rupee Likely Lower as Crude Oil’s Climb To 3-Week High

Rupee Likely Lower as Crude Oil’s Climb To 3-Week High

08 Jan 2019 08:54 AM

Indian rupee is expected to open lower at around 69.80-69.85 against the dollar after Brent crude oil reached its highest level since mid-December, offsetting a further decline on the dollar index.

Brent was little changed in early Asia trade on Tuesday after rising for the sixth straight day yesterday to close at its highest level in three weeks. The contract is now up more than 14% after having reached two-year lows of $50 a barrel around Christmas. The recovery in U.S. equities since the last week of 2018 and recent weakness in the dollar have contributed to the turnaround in oil prices.

The dollar index slipped for the third day yesterday amid bets that the Federal Reserve is unlikely to raise interest rates this quarter. The index’s 0.5% decline yesterday took it to its lowest level, on a closing basis, since mid-October.

Asian currencies were mostly flat on Tuesday after yesterday’s losses on the dollar index. The Chinese yuan was little changed at 6.8514 to the dollar, a day after the U.S. and China began negotiations to end their trade tussle. Commerce Secretary Wilbur Ross yesterday said in an interview that the two are likely to reach a good settlement over immediate trade issues while agreement on structural trade issues and enforcement will be harder.

Date : Jan-2019