Indian Rupee Falls As Trade Deficit Widens Sequentially In March

16 April 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.49 pair now at 69.53 against 69.42 previous close.
• Pair to tip in 69.30-69.60 range today.
• The Indian rupee was lower against the dollar in early session, hurt by wider-than-expected trade deficit in March and broad strength in the dollar. Widening of trade deficit on month and broad strength in dollar weighed on the rupee in opening trade. Importers’ demand for mid-month payments in a holiday-truncated week will further add pressure on the local unit. However, exporters’ dollar sales beyond 69.50 levels and losses in crude will limit further losses. If the rupee breaches 69.60 level, it will further fall to 69.90, otherwise the unit may move to 69.25.

Global Currency

• The dollar edged up against a basket of its key rivals on Tuesday with investors erring on the side of caution as they looked for more concrete signs of stabilization in the global economy. With most currencies staying within well-trodden trading ranges ahead of European and Chinese data, the Australian dollar was the surprise loser in Asia after Australia's central bank left the door ajar for a possible cut in interest rates.
• Major currencies remained confined to well-trodden ranges on Tuesday, as markets look next to European and Chinese data for more evidence that the worst may be over for the global economy.

Global Markets

• Oil prices edged down on Tuesday after a Russian minister said the nation and OPEC may boost crude output to fight the United States for market share, checking a recent rally driven by tighter global production. Brent crude oil futures were at $71 a barrel.
• Gold prices slipped for a fourth straight session on Tuesday as recent upbeat economic data and signs that Washington and Beijing were making headway in a nearly year-long trade tariff skirmish boosted risk sentiment. Spot gold was down 0.2% at $1,284.98 per ounce.

Global Markets at one Glance

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