USD/INR – The Indian rupee opened higher against the dollar tracking gains in other Asian currencies amid a pullback in the dollar index from more-than-two-year highs. The rupee opened at 72.1850 compared with its previous close of 72.40, its lowest since Nov. 13, 2018. Amid trade jitters, the dollar index had risen to its highest in nearly 28 months. The index was last trading 0.1% lower. The dollar index eased mainly after data showed that U.S. manufacturing sector shrank in August. The Institute for Supply Management’s purchasing manager’s index reading stood at 49.1 in August, its lowest since January 2016 and down from 51.2 in July. A reading below 50 indicates a contraction in manufacturing activity, which accounts for about 12% of the U.S. economy. The reading fell below 50 for the first time since August 2016. President Donald Trump said that talks with China are going well, but he also warned that he would be tougher if the discussions dragged on and if he is re-elected next year.
EUR/USD – The euro was steady around $1.0975, a recovery from a 28-month low against the dollar that it touched on Tuesday, as investors priced in deeper negative interest rates for longer in the euro zone. ECB policymakers are leaning towards a stimulus package that includes a rate cut, a beefed-up pledge to keep rates low for longer and compensation for banks over the side-effects of negative rates, five sources familiar with the discussion said. Many also favour restarting asset buys, a significantly more powerful weapon, but opposition from some northern European countries is complicating this issue, as per sources. With economic growth slowing as a global trade war threatens to escalate, the ECB has all but promised to announce more stimulus after its Sept 12 meeting, leaving markets only to guess about the composition of the expected package.
GBP/USD – The British pound recouped losses in the wake of a parliamentary vote that opened the door for another Brexit delay. Sterling climbed as high as $1.210 in early Asian trade, helped by the possibility that a no-deal Brexit may yet be averted. The sterling was pushed higher after British lawmakers voted to take control of the parliamentary agenda and scheduled another vote on Wednesday. If the vote is successful, it would force Prime Minister Boris Johnson to seek more time from the European Union and prevent leaving the bloc without a divorce deal. The prospect of a so-called "hard Brexit" has been a major source of worry for currency markets. The pound had dropped under $1.20 and hit its lowest since a flash crash in October 2016 on Tuesday.
USD/JPY – The dollar pulled back on Wednesday as weak U.S. manufacturing stoked wagers on aggressive policy easing. Manufacturing activity in the world's biggest economy contracted for the first time in three years last month, according to the Institute for Supply Management. That knocked the wind from the greenback and rallied the bond market as investors increased bets on a couple of Federal Reserve rate cuts before Christmas. A 25-basis-point cut is now fully priced in, while yields on benchmark 10-year Treasuries, which fall when prices rise, dropped to their lowest in two years. As a result, the greenback gave ground to the yen. USD/JPY was last trading at 105.97.
Currency Range for today
Important data releases today
|10:30 AM||INR||Nikkei Services PMI (Aug)||51.9||53.8|
|2:00 PM||GBP||Composite PMI (Aug)||-||50.7|
|2:00 PM||GBP||Services PMI (Aug)||51.0||51.4|
28 May 2020 04:24 PM
Rupee Closed at 75.7450 On Likely Foreign Fund Inflows
28 May 2020 02:01 PM
Rupee Came Off Lows On Persistent Greenback Sales By Foreign Banks
28 May 2020 10:11 AM
India Rupee Opened Lower; US-China Friction, Shares In Focus
27 May 2020 04:40 PM
India Rupee Closed Lower As Yuan Falls On Rising US-China Tensions
27 May 2020 01:15 PM
Rupee Traded Lower Amid Likely Foreign Fund Inflows
27 May 2020 10:14 AM
India Rupee Opened Flat; Yuan At 8-Month Low on US-China Tensions