Rupee Opens Higher As Vote Counting Begins

Rupee Opens Higher As Vote Counting Begins

23 May 2019 09:12 AM
 
USD/INR – The Indian rupee opened higher as vote counting for the nation’s federal elections begin. The rupee opened at 69.45 at opening compared with its previous close of 69.66. Very early trends, as reported by television channels, show that the NDA is gaining. Meanwhile, Asian cues were negative on Thursday. Regional currencies and equities were mostly lower amid lingering U.S.-China trade tensions. Late Wednesday, it was reported the U.S. administration was considering Huawei-like sanctions on Chinese video surveillance firm Hikvision over the country's treatment of its Uighur Muslim minority. EUR/USD – The euro was flat at $1.1150, in close range of a 2-1/2-week low of $1.1142 brushed on Tuesday ahead of the May 23-26 European parliamentary election. The German and euro zone manufacturing purchasing managers' index (PMI) releases due later on Thursday may impact the single currency. EUR/USD has held to tight ranges throughout Q2 so far but daily ranges have become even more constrained as key data and elections approach. Those two risks are likely to determine if EUR/USD extends its long-term bear trend or sees a rebound. Polls look for better growth compared to April's results. Downbeat results would dash any hopes of economic green shoots, sending euro zone rates and the euro lower. EU elections begin Thursday, with results expected Sunday. The voting might not create much immediate impact but downside risks for EUR/USD could increase if anti-EU parties gain parliamentary seats in significant numbers. Investors might avoid the euro on such as result.

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