USD/INR opens down as dlr eases, crude oil prices retreat

18 June 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.83 pair now at 69.8050 against 69.90 previous close.
• Pair to tip in 69.65-69.95 range today.
• Dollar/rupee traded lower Tuesday tracking a dip in the greenback ahead of the Federal Open market Committee two-day policy meet. Also, easing crude oil prices further weigh on the demand for dollar from oil importers. Crude oil prices cooled and dollar eased ahead of the Fed policy on hopes that Fed may hint to possible rate cuts for the coming months. The greenback traded lower against its major counterparts as the Federal Reserve starts its two-day monetary policy meet later today.

Global Currency

• The British pound on Tuesday languished near this year's low on rising worries Boris Johnson, the front-runner to replace UK Prime Minister Theresa May, could put Britain on a path towards a dreaded no-deal Brexit. Worries about Brexit hit the British pound, which tumbled to a 5-1/2-month low of $1.2532 on Monday and last traded at $1.2539 GBP.
• The dollar was slightly undermined by the New York Fed's business index showing a record fall this month to its weakest level in more than 2-1/2 years. Fed's two-day policy meeting starting later on Tuesday is the next major focus after markets have priced in more than two 25 basis-point rate cuts by year-end.

Global Markets

• Oil prices were falling for a second day on Tuesday, after more signs that global economic growth is being hit by U.S.-China trade tensions, although losses were limited amid tensions in the Middle East after tanker attacks last week.
• Gold held steady in early Asian trade on Tuesday as investors awaited the start of a two-day monetary policy meeting of the U.S. Federal Reserve for clues on interest rates.

Global Markets at one Glance

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