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USD/INR opens down on Fed rate cut hopes, easing crude oil prices

19 July 2019 / Morning Brief

Indian Rupee

  • The Indian rupee little changed at 68.75 pair now at 68.78 against 68.9550 previous close.
  • Pair to tip in 68.70-68.90 range today.
  • Dollar/rupee opened down Friday as bets on a likely Fed rate cut later this month hardened following dovish comments from New York Fed President John Williams, while the drop in crude oil prices in overnight trades further aided the fall. After dovish comments from Fed member, dollar turned weak. Crude fell sharply in overnight trades. The greenback tumbled against its major counterparts following comments from New York Fed President John Williams supporting a rate cut strongly. Fed William's dovish comments stand as a strong argument in favour of quick action.

Global Currency

  • The dollar was on the defensive on Friday after Federal Reserve officials bolstered expectations of an aggressive rate cut this month to address weakening price pressures. The dollar fell broadly on Thursday after Williams' remarks bolstered bets that the Fed would cut interest rates by 50 basis points, rather than 25 basis points.
  • Williams "is sounding very dovish. The dollar has been taking cues from the interest rates market. U.S. rates futures implied traders fully expect the Fed to lower rates in two weeks. They now see a 71% chance of a 50 basis point rate cut. more than double the level implied late on Wednesday, CME Group's FedWatch tool showed.

Global Markets

  • Gold prices rose to their highest in more than six years on Friday, supported by fresh tensions in the Middle East and comments from a top Federal Reserve official that cemented expectations of an interest rate cut.
  • Oil prices climbed around 2% on Friday after the U.S. Navy destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows, again raising tensions in the Middle East.

Global Markets at one Glance

Markets Today In INR % Change
USD/INR 68.785 68.7975 -0.09
EUR/USD 1.12622 77.46 0.01
GBP/USD 1.25456 86.29 0.27
USD/JPY 107.564 0.64 -0.09
SEK/INR 9.3196 7.3807 0.0041
DKK/INR 6.1401 11.2025 0.0325
AUD/USD 1.4142 48.62 0.08
1M 2.34763 -0.41543  
3M 2.50450 -0.35929  
6M 2.52088 -0.31129  
1Y 2.60925 -0.22029  
Index Today % Change
NIFTY 11592.60 -0.04
SENSEX 38881.40 -0.04
BANK NIFTY 30366.58 -0.32
SGX NIFTY 11616.00 +0.12
NIKKEI 21428.00 +1.81
HANG SENG 28798.50 +1.18
SHANGHAI 2930.58 +1.01
ASX200 6694.30 +0.68
DOW JONES 27223.00 +0.01
S&P500 # 2995.11 +0.36
NASDAQ # 8207.94 +0.27
Key Events of the Day
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