USD/INR – The Indian rupee opened lower against the dollar after Pakistan’s Major General Asif Ghafoor said an Indian military aircraft crossed the line of control in Jammu and Kashmir. The rupee opened at 71.26 against the dollar at opening compared with its previous close of 70.9750. Geo-political risks following reports of Indian aircraft crossing the line of control prompted offshore USD/INR to climb, indicating a higher opening for the pair. This is offsetting the impact of the lower crude oil prices. Brent crude slipped in Tuesday trading, extending the 3.5% decline in the previous session.
EUR/USD – The euro was a shade higher at $1.1365 after advancing 0.2 % on Monday. EUR/USD has room to extend recent gains but bulls will tread cautiously ahead of Fed Chair Powell’s testimony to Congress on Tuesday and Wednesday and also euro zone inflation data. The U.S. decision to delay additional tariffs on China and news on Friday that Fitch Ratings affirmed Italy’s BBB rating have underpinned the current EUR/USD lift. Bulls are particularly careful because euro zone growth remains precarious at best, adding weight to Powell as a dollar driver and upcoming data.
GBP/USD– Sterling jumped to its highest against the dollar in close to four weeks on reports that British Prime Minister Theresa May was considering delaying a deadline on Brexit. May is expected to allow her cabinet to discuss extending the deadline beyond March 29 at a meeting on Tuesday, as reported late on Monday. It was also reported she will propose formally ruling out a “no-deal” Brexit scenario which could potentially lead to the delaying of UK’s exit from the European Union by months. The British pound was last up more than 0.2% at $1.3145, after hitting as high as $1.3153.
USD/JPY – The safe-haven Japanese yen was steady at 110.80 yen after falling as low as 111.24 yen during the previous session Players in Tokyo continue to look for further USD/JPY gains despite an obvious lack of upside momentum. Dips have been bought, sometimes aggressively, by Japanese importers and investors, and this is unlikely to change. The latter bloc is already looking to the start of a new fiscal year in April and a new emperor’s reign from May, and will continue to add to risk and seek good returns abroad.
Currency Range for today
Important data releases today
|7:00 PM||USD||Building permits (Dec)||1.290M||1.322M|
|8:30 PM||USD||CB Consumer Confidence (Feb)||124.7||120.2|