USD/INR – The Indian rupee opened higher against the dollar ahead of the nation’s election results and the U.S. Federal Reserve’s latest meeting minutes. The rupee opened at 69.67 versus the dollar compared with its previous close of 69.71. Results of India’s federal elections will begin trickling in before local currency markets open for trading tomorrow. A clear direction may very well emerge prior to the market open, in which case, the rupee will witness a major move, depending on what the early trends indicate. Meanwhile, Asian currencies were mostly lower ahead of the minutes of the Federal Reserve’s May meeting. After the monetary policy review, the U.S. central bank left interest rates unchanged and maintained its patience stance in the face of muted inflation pressures. However, Fed Chair Jerome Powell in his post policy conference remarked that the current low inflation was likely due to transitory factors, pushing back against expectations on an interest rate cut in the current year.
EUR/USD – The euro was steady at $1.1162. The single currency, which has given up 0.9% from this month's high touched on May 1, has been under pressure in recent weeks on dollar strength and due to concerns the upcoming European parliamentary elections may see euroskeptic parties faring well. EUR/USD plumbed a new 7-day low after briefly dipping below 1.1150 but bears are still struggling to gain traction. Downside misses to today's U.S. data reports have eroded some gains for U.S. Treasury yields especially at the longer-end of the curve. Meanwhile, German Bund yields have rallied, tightening 10-year German-U.S. spreads a bit near recent tights. Traders are keeping their powder dry ahead of EU elections, which begin Thursday, as well as May euro zone PMIs also on Thursday. Despite uncertainty in the upcoming election EUR/USD price action after the results could be muted.
GBP/USD – The pound was at $1.2713, hovering near a four-month low of $1.2685 touched overnight. It briefly rose overnight after Prime Minister Theresa May set out a "new deal" for Britain's departure from the EU, offering sweeteners to Parliament including the chance to vote on whether to hold a second referendum to try to break the impasse over Brexit. Yet traders doubted that a fractious Parliament would have to back any new referendum. Three years since a 52-48% referendum vote in favour of leaving the European Union and almost two months after the planned exit date, May is mounting a last bid to try to get a deeply divided parliament to ratify her divorce deal with Brussels.
USD/JPY – Against the yen, the dollar was largely steady at 110.55 yen, having hit a two-week high of 110.675 during the previous session. The greenback has recovered 1.4% from a three-month trough of 109.02 yen touched on Monday last week. Japan's exports fell 2.4% in April from a year earlier, down for a fifth straight month, in a sign of weakness in external demand, finance ministry data showed, compared with a 1.8% decrease expected. Markets have a more risk-on feel after the U.S. temporarily eased some of its restrictions on Huawei and as Chinese markets hold up. U.S. yields have bounced from recent lows and the Nikkei, which has a strong correlation to USD/JPY, looks to be heading higher too.
Currency Range for today
Important data releases today
|2:00 PM||GBP||CPI (YoY) (Apr)||2.2%||1.9%|
20 Sep 2019 09:14 AM
USD/INR – The Indian rupee opened little changed against the dollar as investors focus on choppy crude oil prices and the Chinese yuan. The rupee opened at 71.20 compared with its the previous close of 71.3175. Brent crude ticked higher in Asia tradi
19 Sep 2019 06:48 PM
The Indian rupee fell against the dollar following an uptick in crude oil prices amid reports that Saudi Arabia had sought crude supply from
19 Sep 2019 01:48 PM
The Indian rupee edged higher against the dollar in choppy afternoon trade, on greenback sales by foreign banks, likely for corporate clients. However, weakness in local shares kept gains under check.
19 Sep 2019 09:22 AM
USD/INR – The Indian rupee opened lower against the dollar after the Federal Reserve cut rates once again but cast doubts on further easing. The rupee opened at 71.35 compared with its previous close of 71.23. Asian currencies were broadly lower on T
18 Sep 2019 05:34 PM
The Indian rupee logged its biggest single-session rise in six months against the dollar, helped by a retreat in crude oil prices following
18 Sep 2019 02:01 PM
The Indian rupee extended gains against the dollar in afternoon trade, on greenback sales by foreign banks and a retreat in crude oil prices.