USD/INR opens up on strong dlr post upbeat US GDP data

1 March 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 70.74 pair now at 70.81 against 70.74 previous close.
• Pair to tip in 70.65-71.00 range today.
• The Indian rupee fell against the dollar in early trade after the world’s largest economy grew at a faster-than-expected clip in the October-December quarter, lifting Treasury yields and the dollar. The unexpected increase in U.S. growth data boosted demand for the dollar. Investors will now focus on the next week’s non-farm payroll data. However, the buying pressure is likely to ease later in the session as traders will keep their positions light ahead of long weekend. Geopolitical concerns will continue to remain on focus.

Global Currency

• The dollar hovered near a 10-week high against the yen on Friday, thanks to a surge in Treasury yields after U.S. gross domestic product data topped expectations. The dollar suffered brief dips against the yen, a perceived safe-haven, this week as tensions between India and Pakistan flared and as a summit between U.S. President Donald Trump and North Korean leader Kim Jong Un ended without an agreement.
• The euro was steady at $1.1371 EUR= , having slid from a three-week peak of $1.1420 scaled the previous day. Core European bond yields hit a three-week high on Wednesday while a broad indicator of European economic data.

Global Markets

• Oil prices rose on Friday as markets tightened amid output cuts by producer club OPEC, but surging U.S. supply and a global economic slowdown prevented crude from climbing further. International Brent crude futures were at $66.59/ barrel, up 28 cents, or 0.4 %.
• Gold prices hit a two-week low on Friday as upbeat U.S. economic data boosted the dollar, while mounting concerns over a slowdown in global growth offered support to the safe-haven metal. U.S. gold futures GCv1 were down 0.1 percent at $1,314.80 per ounce.

Global Markets at one Glance

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