India Rupee Jumps As US-China Trade Fears Retreat; Oil Watched

3 April 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 68.72 pair now at 68.57 against 68.7450 previous close.
• Pair to tip in 68.45-68.80 range today.
• The Indian rupee rose to a more-than-one-week high against the dollar in early trade, as a report that the U.S. and China resolved most of their trade disputes lifted investors’ appetite for risk assets. Risk-on rally in the global markets and record gains in local shares has increased expectation of foreign fund inflows. However, better risk appetite has also pushed oil prices to near $70 per barrel, which will be negative for the local unit. Foreign banks covered some of their short dollar positions capping further gains in the rupee.

Global Currency

• The dollar was steady against its peers on Wednesday, as the recent bounce in U.S. bond yields stalled on increasingly dovish rhetoric from global central banks. The dollar index against a basket of six major currencies .DXY was little changed at 97.313, having lost some traction after climbing a 3-1/2-week peak of 95.517 the previous day.
• Sterling had edged up 0.25 percent the previous day after Prime Minister Theresa May said she would seek another Brexit delay to agree an EU divorce deal with the opposition Labour leader, a lastditch gambit to break an impasse over Britain's departure.

Global Markets

• Oil prices rose for a fourth day on Wednesday, with support from OPEC-led supply cuts and U.S. sanctions overshadowing an industry report showing an unexpected rise in U.S. inventories last week. Brent futures LCOc1 rose 35 cents, or 0.5 percent, to $69.72 a barrel. after earlier reaching $69.87, the highest since Nov. 12.
• Gold prices were steady on Wednesday as a weaker dollar offset pressure on the metal, which recovered from a four-week low in the previous session, while a rally in equities to multi-month highs capped bullion's safe-haven demand. Spot gold was flat at $1,292.48 per ounce.

Global Markets at one Glance

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