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India Rupee Slips On Trade Deficit, Equity Woes

18 February 2019 / Morning Brief

Indian Rupee

  • The Indian rupee little changed at 71.31 pair now at 71.42 against 71.22 previous close.
  • Pair to tip in 71.20-71.50 range today.
  • The Indian rupee was trading lower against the dollar in early session, underperforming other regional currencies, after India’s trade deficit widened on a sequential basis to more-than-expected levels. In addition to worries on the oil front, rupee has to contend with the consistent weakness in domestic equities. Indian equities today are once again underperforming and I think this trend may continue on account of rising political risk premiums.

Global Currency

  • The dollar fell versus a basket of its peers on Monday as rising expectations of a U.S.-Sino trade deal led investors to shift away from the safety of the greenback into riskier assets. Both the United States and China reported progress in five days of negotiations in Beijing last week, although the White House said much work remains to be done to force changes in Chinese trade behaviour. will continue next week in Washington as investors hope for an end to the trade war between the world's two largest economies.
  • Sterling GBP= was up by 0.2 percent to $1.2914, building on its gains from Friday. The pound rallied 0.6 percent on Friday, helped by reports of some hedge fund buying, a conciliatory tone on Brexit from the Irish foreign minister and stronger-than-expected British retail sales data.

Global Markets

  • Oil prices fell on Monday after climbing to their highest this year earlier in the session as China reported automobile sales in January fell for a seven month, raising concerns about fuel demand in the world's second-largest oil user.
  • Gold prices rose to their strongest level in more than two weeks on Monday as the dollar weakened on hopes the United States and China are nearing a trade deal, while palladium hit a record high.

Global Markets at one Glance

Markets Today In INR % Change
USD/INR 71.4725 71.485 0.22
EUR/USD 1.13116 80.85 0.33
GBP/USD 1.29121 92.29 0.38
USD/JPY 110.54 0.65 0.17
SEK/INR 9.2595 7.7188 0.0314
DKK/INR 6.3800 11.2025 0.0325
AUD/USD 1.3983 0.25
1M 2.48038 -0.41386  
3M 2.68288 -0.33714  
6M 2.75375 -0.29029  
1Y 2.906 -0.17229  
Index Today % Change
NIFTY 10655.95 -0.64
SENSEX 35583.68 -0.63
BANK NIFTY 26714.7 -0.3
SGX NIFTY 9347.5 0.33
NIKKEI 20900.63 -1.13
HANG SENG 28364.39 1.66
SHANGHAI 2741.5323 2.21
ASX200 6089.8 0.39
DOW JONES 25883.25 1.74
S&P500 # 2775.6 1.09
NASDAQ # 7055.179 0
Key Events of the Day
Date Time Currency Event Forecast Previous
18-02-2019 USD Holiday Washington Birthday

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