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Indian Rupee At 3-Week High Tracking Oil Slump; Fed Outlook Eyed

19 December 2018 / Evening Brief

Indian Rupee

  • The rupee settled at 70.40 against 70.44 at the previous close. The local unit moved in 69.85‐70.4750 per dollar band intra‐day.
  • The Indian rupee rose for a third day to a near‐three‐week high against the dollar, tracking an overnight slump in crude oil prices, while investors awaited the U.S. FED decision on interest rates and future guidance later today. Fall in crude oil prices strengthened the rupee while inflows into local equities this month also helped it to make gains. However, the rupee’s reversal may come after the Fed’s outcome if it diverges significantly from what the market is expecting in terms of a commentary and pace of future rate hikes.

Global Currency

  • The dollar fell on Wednesday as investors bet that the Federal Reserve would signal plans to slow its pace of interest rate raises at a keenly‐watched meeting later in the day. Fed policy makers are widely tipped to raise rates for a fourth time this year but also to express caution about future monetary tightening due to concern about slowing global growth.
  • The euro was also supported by news that Italy had struck a deal with the European Commission over its contested 2019 budget, signalling an end to weeks of wrangling that had shaken financial markets.

Global Markets

  • Oil stabilised on Wednesday after one of its biggest falls for years, but remained under pressure from oversupply and concern that a slowing global economy would depress demand for fuel. U.S. light crude was 25 cents higher at $46.49, after plunging 7.3 percent in the previous session when it touched its lowest since August 2017.
  • Gold prices climbed to a more than five‐month peak on Wednesday as a softer dollar supported the bullion while investors awaited cues on the rate hike trajectory of the U.S. central bank from its two‐day policy meeting.

Global Markets at one Glance

Markets at 5.00pm In INR % Change
USD/INR 70.41 70.41 -0.33
EUR/USD 1.14011 80.23 -0.05
GBP/USD 1.26429 88.91 -0.46
USD/JPY 112.353 0.63 -0.16
SEK/INR 9.0657 7.7666
DKK/INR 6.273 11.2250 0.49
AUD/USD 1.3912 50.59
DXY 96.811 -0.3
Index Today % Change
NIFTY 10967.3 0.54
SENSEX 36484.33 0.38
NIKKEI 20987.92 -0.6
HANG SENG 25865.39 0.2
SHANGHAI 2549.5634 -1.05
CAC# 4781.25 0.57
FTSE # 7264.61 0.0042
DAX # 10816.43 0.7
Commodities Today % Change
GOLD # 11248.05 -0.1
SILVER# 14.585 0
BRENT # 56.44 0.32
NYMEX # 46.32 0.17
Today Today
OPEN 70.1000
HIGH 70.4750
LOW 69.8500
CLOSE 70.4000

Key Events of the Day

Date Time Currency Event Actual Forecast Previous
19-12-2018 15.00 GBP CPI (YoY) (Nov) 2.3% 2.3% 2.4%

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