India Rupee Falls Close To 73 As Oil Gains; RBI Likely Steps In
12 September 2018 / Morning Brief
The Indian rupee little changed at 72.7850 pair now at 72.7950 against 72.69 previous close.
Pair to tip in 72.65- 73.00 range today.
The Indian rupee extended fall to record lows and was near the 73 to dollar level in early trade, tracking higher crude oil prices that increased concerns of widening trade deficit at home. As oil inches closer to $80 per barrel mark and Indian being one of the major importers, it will only intensify troubles for the rupee. RBI might have stepped in to keep the local unit from falling below 73 mark.
The dollar dipped on Wednesday as Canada signalled it was ready to make a concession to the United States to resolve their talks over reworking the North American Free Trade Agreement, China will ask the World Trade Organization next week for permission to impose sanctions on the United States for Washington's non-compliance with a ruling in a dispute over U.S. dumping duties. They are still lingering so it becomes hard to shift to mood of aggressive risk taking
The euro EUR= was down 0.1 percent at $1.1595, while the pound GBP=D4 also shed 0.1 percent to $1.3017, coming off a one-month high of $1.3087 reached on Monday as a rise in optimism over prospects for a Brexit trade deal with the European Union faded.
Oil prices rose on Wednesday following a report of declines in U.S. crude inventories and as looming sanctions against Iran raised expectations of tightening supply, while top producer Russia warned of a fragile global crude market. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $69.84 per barrel.
Gold prices edged lower on Wednesday as a key technical resistance acted as a deterrent for the metal and the yuan weakened against the dollar on fears the U.S.-China trade war could escalate. Spot gold XAU= was down 0.3 percent at $1,194.08 an ounce.
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Key Events of the Day
PPI (MoM) (Aug)
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