Rupee Opens Flat With Focus On Oil, US Rate Outlook

Rupee Opens Flat With Focus On Oil, US Rate Outlook

14 Jun 2019 09:10 AM
 
USD/INR – The Indian rupee opened little changed against the dollar with traders eyeing crude oil prices and prospects of an interest rate cut by the Federal Reserve at next week’s meeting. The rupee opened at 69.51 to the dollar at opening compared with its previous close of 69.51. Brent crude edged higher in Asia trading on Friday to $61.34 per barrel, adding to yesterday’s 2.2% climb. The nearest-month Brent futures surged above $62.50 yesterday following an attack on two oil tankers near the Gulf of Oman. Yesterday’s incident was the second in the strategic area in about a month. U.S. Secretary of State Michael Pompeo blamed Iran for the attack. The U.S. military released a video it said showed Iran's Revolutionary Guard (IRGC) removing an unexploded mine from the side of one of the two oil tankers attacked earlier in the day. EUR/USD – The euro edged up 0.03% to $1.1280, holding up after falling during the past two sessions, though it was still set for a weekly loss of 0.44%. Despite downbeat U.S. weekly claims, EUR/USD is sliding under the weight of market expectations about ECB policy. Euro zone 5y5y inflation swaps trade near record lows and show few signs of rebounding. The downside surprise to euro zone industrial production and growth warnings from the IMF should keep inflation expectations anchored. Additional weight comes from trade concerns. President Trump's threat to impose sanctions over Russia's Nord Stream 2 pipeline increased downside risks to EUR/USD due to worries that any such measures could hamper euro zone growth

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