Indian Rupee Rises As Oil Price Fall Outweighs Risk Aversion
13 November 2018 / Morning Brief
The Indian rupee little changed at 72.72 pair now at 72.86 against 72.51 previous close.
Pair to tip in 72.50- 72.80 range today.
The Indian rupee rose against the dollar in early trade, as a renewed fall in crude oil prices outweighed impact from weak global risk appetite and broad strength in the greenback. Lower-than-expected domestic retail inflation data also supported the rupee. Brent prices staying below $70 per barrel mark will help the Indian rupee to further appreciate towards 72 per dollar.
The dollar traded just below a 16-month high versus a basket of peers, benefiting from save-haven flows as investors shunned riskier assets because of political uncertainties in Europe and fears of a global economic slowdown. Investor confidence has been eroded by bitter trade tensions between the United States and China, fears of a no-deal Brexit, and a standoff between Rome and the European Union over Italy's deficit-deepening budget.
Sterling traded with a weak bias in early Asian trade at $1.2856. It has slipped against the dollar in the last three trading sessions and posted its largest percentage decline versus the dollar since Sept. 21 on Monday. Euro gained 0.1 percent to trade at 1.1227 on Tuesday, after tumbling more than one percent versus the dollar on Monday.
Oil prices fell by around 1 percent on Tuesday, with Brent crude sliding below $70 and WTI below $60 per barrel, after U.S. President Donald Trump put pressure on OPEC not to cut supply to prop up the market. International benchmark Brent crude oil futures LCOc1 were at $69.47 per barrel, down 65 cents, or 0.9 percent, from their last close.
Gold prices edged higher on Tuesday, as investors looked for bargains after the metal fell to a more than one-month low on a stronger U.S. dollar.
Global Markets at one Glance
Key Events of the Day
Share this post?
Download RouteForex Mobile App
And Track Your Entire Portfolio
Request a Call Back
Your submission is received and our Expert will contact you soon