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Indian Rupee Slips As New RBI Governor Seen Less Hawkish

12 December 2018 / Morning Brief

Indian Rupee

  • The Indian rupee little changed at 72.20 pair now at 72.00 against 71.85 previous close.
  • Pair to tip in 71.90- 72.30 range today.
  • The Indian rupee slipped against the dollar in early trade after the appointment of former Economic Affairs Secretary Shaktikanta Das as the new head of the central bank, who could prompt a more dovish stance by the central bank on interest rates. We believe that Das stands in the neutral‐to‐slightly dovish spectrum on monetary policy. The MPC structure will ensure policy continuity, but since Das replaces a more hawkish Patel, the MPC’s composition, at the margin, will become relatively less hawkish.

Global Currency

  • The dollar held near a one‐month high against its peers on Wednesday, supported by a rebound in U.S. government bond yields and weakness of the pound as its battering from uncertainty about Brexit continued.
  • The pound suffered further on Tuesday on media reports that May's parliamentary colleagues believed they had sufficient numbers to mount a no‐confidence vote in her leadership. British currency was little changed at 1.2495 after dropping to 1.2480 overnight, its weakest since April’17. The currency has lost 1.8 percent this week.

Global Markets

  • Oil prices climbed by more than 1 percent on Wednesday, lifted by expectations that an OPEC‐led supply cut announced last week for 2019 would stabilise markets as well as hopes that long‐running Sino‐American trade tensions could ease.
  • Gold prices were steady early on Wednesday, supported by expectations of fewer rate hikes by the U.S. Federal Reserve next year, while palladium traded at a premium to gold. U.S. gold futures rose 0.2 percent to $1,249.9 per ounce.

Global Markets at one Glance

Markets Today In INR % Change
USD/INR 72.001 72.01 -0.38
EUR/USD 1.13243 81.53 -0.38
GBP/USD 1.25077 90.05 -0.17
USD/JPY 113.473 0.63 -0.46
SEK/INR 9.0823 7.9276 -0.0246
DKK/INR 6.4272 11.2025 0.0325
AUD/USD 1.3855 -0.24
TIME USD LIBOR EURO LIBOR  
1M 2.4205 -0.41071  
3M 2.77594 -0.35729  
6M 2.87788 -0.32671  
1Y 3.084 -0.21443  
Index Today % Change
NIFTY 10646.65 0.92
SENSEX 35469.24 0.91
BANK NIFTY 26443.25 1.07
SGX NIFTY 10549 0.58
NIKKEI 21148.02 -0.34
HANG SENG 26169.35 1.54
SHANGHAI 2599.1642 0.2
ASX200 5653.4 1.39
DOW JONES 24370.24 -0.22
S&P500 # 2636.78 -0.04
NASDAQ # 6704.237 0.32
Key Events of the Day
Date Time Currency Event Forecast Previous
12/12/2018 19:00 USD Core CPI (MoM) (Nov) 0.2% 0.2%
12/12/2018 21.00 USD Crude Oil Inventories -2.990M -7.323M

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