Rupee Opened Little Changed; Bets On RBI Intervention Offset Dollar Weakness

Rupee Opened Little Changed; Bets On RBI Intervention Offset Dollar Weakness

03 Dec 2020 10:07 AM
 

USD/INR

Indian rupee opened little changed at 73.81 compared to 73.80 in the previous session as bets on likely RBI intervention offset impact of declining dollar and broad optimistic risk sentiment. Yesterday, the rupee opened higher and touched an intraday high of 73.44 before RBI intervention prompted an almost 35-paisa intraday turnaround. Fresh talks of another U.S. fiscal stimulus revived this week and a bipartisan proposal of $900 billion has been put forth. It’s a relatively busy day ahead for the U.S Dollar. November’s ISM Non-Manufacturing PMI and weekly jobless claims figures will have the greatest influence. Dollar index was down 0.1% at 91.02, near its lowest levels since April 2018. Ten-year US yield was at 0.94%. Brent crude was down 13 cents at $48.11 a barrel while U.S. light crude eased 15 cents to $45.13.

EUR/USD

It’s an eventful day for Euro on the economic calendar. Spanish and Italian service sector PMI numbers are due out along with Eurozone retail sales figures for October. Finalized services and composite PMI figures are also due out of France, Germany, and the Eurozone. Aside from any changes in the prelim figures, Italy and the Eurozone’s PMIs are expected to have the most influence. Brexit updates will also provide direction to Euro. At the time of writing, the Euro was up by 0.02% to $1.2118.

GBP/USD

It’s a relatively uneventful day ahead on the economic calendar. Finalized services and composite PMI figures are due out later today. Except any revisions to prelim figures, the figures are not expected to have a material impact on the Pound. Brexit updates will be the key drivers for the day. Progress on the coronavirus vaccine has been a major source of the positive risk sentiment. U.K. became the first western nation to approve a vaccine, approving the one developed by Pfizer Inc.  At the time of writing, the Pound was up by 0.13% to 1.3382. 

USD/JPY

It was a relatively busy morning for Yen on the economic calendar. Finalized service sector PMI numbers were in focus. The Markit Services PMI came in at 47.8 for November, which was up from an October 47.7. Yen has been closely following the US dollar price action and delayed its decline ahead of US economic data releases. At the time of writing, Yen was up 0.06% to $104.46.

Important data releases today

Time

CCY

Event

Forecast

Previous

10:30

INR

Nikkei Services PMI (Nov)

55.5

54.1

15:00

GBP

Composite PMI (Nov)

47.4

47.4

15:00

GBP

Services PMI (Nov)

45.8

45.8

19:00

USD

Initial Jobless Claims

775K

778K

20:30

USD

ISM Non-Manufacturing PMI (Nov)

56.0

56.6