India Rupee Gains On Corporate Dollar Sales

11 February 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 71.23 pair now at 71.25 against 71.30 previous close.
• Pair to tip in 71.10-71.40 range today.
• The Indian rupee rose against the U.S. currency on the back of dollar sales by two large private-sector banks, mostly on behalf of exporters. With the pair more or less in the middle of its trading range over the last three weeks and in the absence of any major catalysts, speculative flows are quite muted. While there is a bit of exporter interest to hedge the far receivables in early trading, it is not going to be enough to push the pair below 71.10-71.40 levels.

Global Currency

• The dollar stayed near a six-week high against a basket of currencies as fresh worries over U.S.-Sino trade tensions and global growth pushed investors towards the safety of the dollar. U.S.-China talks are the big focus for the week and the dollar strength is indicative of the cautious market sentiment right now owing to its safe-haven status.
• The euro EUR= was marginally lower versus the greenback at $1.1322 in Asian trade while the Aussie AUD= was 0.1 percent higher at $0.7096, after a disastrous week in which it lost 2.2 percent. strength in the dollar has come despite the Federal Reserve taking a dovish stance at its policy meeting in January. For now, investors are piling into the safety of the greenback due to fears of a sharp global economic slowdown.

Global Markets

• Oil prices fell by around 1 percent on Monday as drilling activity in the United States, the world's largest oil producer, picked up and financial markets were pulled down by trade concerns.
• Gold prices held firm on Monday, supported by worries over a slowdown in global economic growth and uncertainties around Sino- U.S. trade war, but a strong dollar limited the safe-haven metal's appeal.

Global Markets at one Glance

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