Rupee Opens Flat As Oil Plunges, Dollar Gains

Rupee Opens Flat As Oil Plunges, Dollar Gains

13 Jun 2019 09:11 AM
 
USD/INR – The Indian rupee opened flat against the U.S. currency as the dollar index’s biggest gain in two weeks would likely offset the Brent crude’s fall to its lowest in more than four months. The rupee opened at 69.34 to a dollar compared with its previous close of 69.34. The dollar index’s advance came despite a softer-than-expected U.S. consumer inflation data, which further encouraged bets that the Federal Reserve may cut rates. Retail inflation in the world’s largest economy rose 1.8% year-on-year in May, lower than the 1.9% expected. The more closely watched core consumer price index was up 2%, a 10th slower than expected. Meanwhile, Brent crude yesterday closed at its lowest since late-January following an unexpected increase in U.S. crude stockpiles. The uncertain demand outlook amid mounting trade tensions has prompted an 18% drop in Brent crude since the beginning of May. EUR/USD – The euro was a shade higher at $1.1293 after retreating 0.35% overnight. The euro took a hit after U.S. President Donald Trump said on Wednesday he was considering sanctions over Russia's Nord Stream 2 natural gas pipeline project and warned Germany against being dependent on Russia for energy. EUR/USD bulls are a bit frustrated after the downside surprise to U.S. May core CPI failed to lift the pair to new highs. Bulls need a downside surprise to Friday's U.S. May retail sales, which would increase the chances of a Fed cut next week.

Recommended for you...