USD/INR opens down as dlr eases after dovish Fed policy

20 June 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.47 pair now at 69.55 against 69.68 previous close.
• Pair to tip in 69.40-69.70 range today.
• Dollar/rupee opened lower Thursday tracking a weak greenback after Fed's policy statement released overnight signalled a possible rate cut in the coming months. The dollar was on the defensive mode after the Federal Reserve signalled it was ready to lower interest rates to combat growing global and domestic risks. Foreign banks are on the sell-side. Federal Reserve announced it held its interest rates steady in June as widely expected but signalled it was ready to lower interest rates and ease policy as early as next month to combat growing global and domestic risks.

Global Currency

• The dollar was on the defensive on Thursday after the Federal Reserve signalled it was ready to lower interest rates to combat growing global and domestic risks. Even though the market had anticipated much of what the Fed said, the dollar's fall was still a relatively large one.
• The Fed on Wednesday left interest rates unchanged as widely expected but said the case for lower rates was building, suggesting it could ease monetary policy as early as next month as it took stock of rising trade tensions and growing concerns about weak inflation. dollar index .DXY against a basket of six major currencies was little changed at 97.188 after losing more than 0.5% overnight.

Global Markets

• Oil prices rose over 1 percent on Thursday as official data showed U.S. crude stocks fell more than expected and as OPEC and other producers finally agreed a date for a meeting to discuss output cuts.
• Gold prices surged as much as 1.8% to their highest in more than five years on Thursday after the U.S. Federal Reserve signalled possible interest rate cuts later this year, sending the dollar and U.S. Treasury yields lower.

Global Markets at one Glance

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