Rupee Opened Lower As Brent Jumps On Iran Sanctions

Rupee Opened Lower As Brent Jumps On Iran Sanctions

22 Apr 2019 09:16 AM

USD/INR – The Indian rupee opened lower against the dollar as Brent crude surged to more-than-five-month highs following a report that the U.S. will announce an end to sanction waivers for imports from Iran. The rupee opened at 69.75 versus its previous close of 69.36. It is increasingly becoming difficult to justify the rupee at current levels in light of another leg higher on crude oil.  While the rupee remains supported by portfolio inflows, especially on the equity side, the odds are that the pair climbs well past the immediate-term high of 69.70 this week. Futures on the nearest Brent crude contract jumped Monday following a report by The Washington Post that the U.S. State Department is set to announce that all countries will be required to end imports of oil from Iran, failing which they would be subject to sanctions.

EUR/USD – EUR/USD may drop to fresh year-to-date lows below 1.1176 in the near term, as the recent US economic data releases have pointed to a stronger economy in the first three months than previously expected. The consumer spending, as represented by retail sales, surged 1.6 percent in March – the fastest pace in a year and a half – the official data released last week showed. Further, jobless claims hit fresh multi-decade low, meaning consumer spending may remain strong in the coming months. EUR/USD is already trading on the defensive, having dived out of a bullish channel last week and could print fresh year-to-date lows below 1.1176 this week.  EUR/USD was last trading at 1.1240.

GBP/USD – The GBP/USD pair is slightly weak while trading near 1.2995 during today's early morning. Despite breaking ascending trend-line support stretched since mid-February. Friday’s sluggish housing market numbers from the US and absence of the UK lawmakers from the parliament till April 23 limits the market moves. Additionally, Easter Monday holiday in the UK and the US is also playing its role in restricting the pair’s performance. GBP/USD was last trading at 1.2996.

USD/JPY - The catalysts behind the movement of the Japanese Yen this week will be the Bank of Japan Outlook Report, Monetary Policy Statement and BOJ Press Conference. Traders expect the BOJ to leave policy unchanged, while warning that it may ease if necessary. The holiday-shortened week produced little major movement in the Dollar/Yen last week with most of the price action controlled by the direction of U.S. Treasury yields. The Forex pair did extend the 15-week rally with a move to 112.170, its highest level since the week-ending December 20, but there was very little follow-through to the upside. The higher-high, lower-close produced a potentially bearish closing price reversal top, however, this may have been fueled by the below-average trading volume. Last week, the USD/JPY settled at 111.936, down 0.077 or -0.07%.  USD/JPY was last trading at 111.94.
Currency range for today
Currency Lower Upper
USD/INR 69.55 70.05
EUR/INR 78.00 78.80
GBP/INR 90.45 91.25
JPY/INR 0.6205 0.6265
Important data releases today
Time Currency Event Forecast Previous
7.30 PM USD Existing Home Sales 5.31M 5.51M