India Rupee Falls To 7-Week Low As Crude Oil Prices Surge

The rupee settled at 70.25 against 69.87 at the previous close. The local unit moved in 69.92 -70.28 per dollar band intra-day.
The Indian rupee fell for a second day against the dollar to close at an over seven-week low, as the benchmark Brent crude oil price breached the $75 per barrel level and on broad dollar strength. Surge in crude oil prices dragged the rupee lower as oil and other importers stepped up dollar purchases, while some stop losses were also hit that led to further deprecation in the rupee. For further cues, traders will closely watch oil price movement as it poses a threat to potential inflows into local assets.

The dollar has come off Wednesday’s highs in early trade in Europe on Thursday, but is still well bid on the back of news flow suggesting the U.S. economy remains a pillar of relative strength. The dollar index, which measures the greenback against a basket of six major currencies, surged to its highest since May 2017 overnight after the Bank of Japan joined its counterpart in Canada in talking down the economic outlook.
The euro languished near a 22-month low on Thursday, weighed down by ailing growth in Germany and the spectre of political uncertainty in Spain. A surprise drop in German business morale has highlighted the divergence between economic data.

Gold prices edged up on Thursday as a dip in equities and weak economic data from far and wide raised flags about the pace of global economic growth.
Brent oil rose above $75 per barrel on Thursday for the first time this year as quality concerns forced the suspension of some Russian crude exports to Europe while the United States prepared to tighten sanctions on Iran.

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