USD/INR opens down tracking sharp fall in crude oil prices

3 July 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 68.84 pair now at 68.83 against 68.9250 previous close.
• The Indian rupee little changed at 68.84 pair now at 68.83 against 68.9250 previous close.
• Dollar/rupee opened lower on Wednesday tracking a sharp fall in crude oil prices in international markets. Oil prices are trading down which lead to a fall in dollar demand. Brent crude oil futures for Sep delivery traded at $62.80 a barrel on Wednesday morning. Crude oil prices eased significantly even as Russia agreed to extend cuts until next March as weak manufacturing data globally flared fears of slowing global economy which may dent demand for oil. Dollar/rupee opened at Rs 68.84/$1 Wednesday and to its previous close of Rs 68.92/$1.

Global Currency

• The dollar struggled for traction on Wednesday as fading hopes for any near-term Sino-U.S. trade deal revived safe-haven demand and drove U.S. bond yields to their lowest levels since late 2016.
• U.S. yields also tracked a decline in their British counterparts to 2-1/2-year lows on dovish-sounding comments from BOE Governor, which in turn weighed on the pound. The pound was steady at $1.2592 GBP after shedding 0.35% the previous day, when it touched a two-week trough of $1.2584. The BoE's Carney said on Tuesday that a global trade war and a no-deal Brexit were growing risks to Britain economy, which might need more help to cope with a downturn.

Global Markets

• Oil prices edged higher on Wednesday after a steep fall in the previous session, supported by extended output cuts by OPEC and its allies despite concerns that a slowing global economy could crimp demand.
• Oil prices edged higher on Wednesday after a steep fall in the previous session, supported by extended output cuts by OPEC and its allies despite concerns that a slowing global economy could crimp demand.

Global Markets at one Glance

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