Rupee Opens Higher On Dollar Index Pullback Oil Prices Eyed

Rupee Opens Higher On Dollar Index Pullback Oil Prices Eyed

09 Apr 2019 09:12 AM

USD/INR – The Indian rupee recovered from one-month lows against the U.S. currency after the dollar index suffered its biggest fall in three weeks. The rupee opened at 69.59 versus its previous close of 69.67. The dollar index edged lower to near 97 in Asia trading on Tuesday, adding to its 0.4% decline in the previous session. Yesterday’s decline on the dollar index came after the gauge climbed to near one-month highs on Friday amid better-than-expected U.S. job additions. Meanwhile, Brent crude advanced on Monday to scale new five-month highs of above $71 a barrel. Increasing worries over supplies and reduced concerns over the world growth outlook have lifted Brent crude by about 4% this month, taking the year-to-date advance to 32%.

EUR/USD – The euro was effectively flat at $1.1266 after advancing 0.4% on Monday, when it ended a two-day losing streak. EUR/USD shorts have little to show for their efforts lately, and the inability to force new lows while facing continued bearish risks has probably left bears questioning their view. Despite downside surprises to Germany's February exports and imports, which highlighted persistent downside risks to euro zone growth, EUR/USD bears were unable to capitalize. Instead, a sharp rally has taken hold ahead of Wednesday's ECB meeting and EU Brexit summit.

 GBP/USD – The pound was unchanged at $1.3077, having traded in a narrow range so far this week, reflecting nervousness in the market about key Brexit talks between Prime Minister Theresa May and the opposition Labour Party. Britain is due to leave the European Union on Friday but May is seeking a compromise with the Labour Party regarding terms for Brexit ahead of an EU leaders' summit on Wednesday. May heads to Berlin and Paris on Tuesday to meet Chancellor Angela Merkel and President Emmanuel Macron before setting out the case for another delay at Wednesday's EU summit in Brussels

 USD/JPY – The dollar was a shade weaker at 111.35 yen after shedding 0.2% the previous day to put additional distance between a three-week peak of 111.825 scaled on Friday. The dollar sagged on Tuesday after weak U.S. economic data while commodity-linked currencies such as the Canadian and Australian dollars drew support from an ongoing surge in crude oil prices. The dollar index against a basket of six major currencies stood at 97.083 after losing 0.35% the previous day, marking its biggest daily decline since March 20. In addition to pressure from buoyant commodity-linked currencies, the dollar was weighed by data showing U.S. durable goods orders declined in February.

 Currency Range for today

Currency Pair Lower Upper
USD/INR 69.40 69.90
EUR/INR 78.00 78.80
GBP/INR 90.75 91.45
JPY/INR 0.6225 0.6285

Important data releases today

Time Currency Event Forecast Previous
7:30 PM USD JOLTs Job Openings (Feb) 7.550M 7.581M

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