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USD/INR futures up as investors stay long dollars with US-China trade issues weighing

28 August 2019 / Evening Brief

Indian Rupee

  • The rupee settled at 71.77 against 71.48 at the previous close. The local unit moved in 71.4550-71.8675 per dollar band intra-day.
  • Dollar/rupee futures traded higher on Wednesday in line with spot and forward premia with traders mostly preferring to stay long dollars in view of worsening Sino-US trade relations and mounting recesion fears globally. Participants in futures are mostly preparing for stronger dollar with the ongoing recession fears and US-China trade war tensions. Nowadays, investors in rupee spot as well as derivatives are also tracking the Chinese yuan.

Global Currency

  • The Japanese yen clung to its recent gains on Wednesday as worries about a global economic downturn grew, while sterling slumped on British Prime Minister Boris Johnson's move to limit parliament's opportunity to derail his Brexit plans. Two-year U.S. government bond yields rose further above 10-year yields, a deepening of the so-called inversion of the yield curve that many see as a harbinger of a recession. Investors worry the trade conflict between the United States and China could tip the world into an economic slowdown.
  • Euro/dollar was little changed, trading at $1.1091 EUR=EBS with little in the way of new economic data scheduled for Wednesday or developments to spark bigger moves.

Global Markets

  • Gold eased on Wednesday, after rising over 1% in the previous session on fears of a possible recession, but held close to a more than six-year high on hopes of a rate cut by the U.S. central bank and uncertainties around the Sino-U.S. trade talks.
  • Oil prices rose on Wednesday after industry data showing a fall in stockpiles of U.S. crude somewhat eased worries about subdued demand due to the China-U.S. trade war. Brent crude futures LCOc1 climbed 70 cents to $60.21 a barrel.

Global Markets at one Glance

Markets at 5.00pm In INR % Change
USD/INR 71.78 71.78 0.33
EUR/USD 1.10864 79.60 0.3
GBP/USD 1.222 87.66 -0.25
USD/JPY 105.722 0.68 0.35
SEK/INR 9.6990 7.4008 0.0051
DKK/INR 6.395 11.2250 0.49
AUD/USD 1.4821 48.42 0.13
DXY 98.02 0.12
Index Today % Change
NIFTY 11046 -0.53
SENSEX 37451 -0.50
NIKKEI 20479 0.11
HANG SENG 25640 -0.17
SHANGHAI 2897.43 +0.49
CAC# 5364 0.30
FTSE # 7081 0.21
DAX # 11632 -0.83
Commodities Today % Change
GOLD # 1553 0.11
SILVER# 18.46 0.90
BRENT # 59.59 0.93
NYMEX # 55.61 1.26
Today Today
OPEN 71.5300
HIGH 71.8675
LOW 71.4550
CLOSE 71.7700

Key Events of the Day

Date Time Currency Event Actual Forecast Previous

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