India Rupee At 2-Wk Low As Global Growth Fears Spur Risk Aversion

3 January 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 70.29 pair now at 70.41 against 70.17 previous close.
• Pair to tip in 70.15- 70.55 range today.
• The Indian rupee fell to a two‐week low against the dollar in early trade, as lower sales guidance by iPhone maker Apple sparked global growth concerns, hurting appetite for risk assets. Risk‐off rally in the global markets on concerns over slowdown in global economic growth have boosted appetite for safe‐haven assets, which has remained a drag on the rupee in the new year, some profit booking in dollar is expected after a sharp rally. Investors will keep their positions light ahead of U.S. jobs data and comments from Fed Chair Powell due tomorrow.

Global Currency

• The yen soared versus its peers on Thursday, breaking through key technical support levels as heightened global growth risks pushed investors into safe haven-assets in moves exacerbated by thin holiday volumes. Charging the risk averse mood was a rare revenue warning from Apple Inc AAPL.O , which added to worries about fading global demand.
• The euro EUR= was slipped at $1.1340 in Asian trade. On Wednesday, the single currency fell 1 percent after data showed manufacturing activity contracted in Spain, France, Italy, and Germany.

Global Markets

• Oil prices fell on Thursday amid volatile currency and stock markets, and as analysts warned of an economic slowdown for 2019 just as crude supply is rising globally. U.S. crude oil dropped by around 2 percent from their last settlement, or 93 cents, to $45.61.
• Gold prices inched up on Thursday as a dip in Asian equities and worries about a sharp global economic slowdown propelled demand for safer investments.

Global Markets at one Glance

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