USD/INR opens down as oil price slide reduces dollar demand

14 May 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 70.4450 pair now at 70.4225 against 70.53 previous close.
• Pair to tip in 70.20-70.60 range today.
• Dollar/rupee opened down on Monday as a drop in oil reduced importers' demand for the US currency. Rupee opened up following the slide in oil prices. Crude oil futures dropped as concerns over trade tensions between US and China increased after China announced retaliating measures. China on Monday announced it would impose higher tariffs on $60 billion of U.S. goods following Washington's decision last week to hike its own levies on $200 billion in Chinese imports.

Global Currency

• The USD/CNY pair edged down 0.1% to 6.8712. Citing unnamed sources, the Hong Kong Economic Times reported that China’s National Team intervened and injected funds into the markets, but the report did not provide any further details. The news boosted investor sentiment and Chinese stocks rose immediately following the report, before falling back into the red shortly after.
• The U.S. dollar traded flat against its rivals on Monday, pressured by a rise in the safe-haven yen as Beijing retaliated against Washington's most recent tariff salvo. Risk-sensitive currencies like the yen and Swiss franc racked up gains against the greenback before pulling back from their highs.

Global Markets

• Gold prices held steady near one-month highs on Tuesday as an escalation in Sino-U.S. trade war sent investors looking for safe-haven assets. Gold is moving because people are looking to find a safe harbour in the storm while they wait for the dust to settle.
• Oil prices were moving higher on Tuesday, though gains were checked amid an escalation in the trade war between the US-China.

Global Markets at one Glance

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