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India Rupee Steady Ahead Of MPC Outcome; Powell Speech Eyed

6 February 2019 / Morning Brief

Indian Rupee

  • The Indian rupee little changed at 71.55 pair now at 71.52 against 71.56 previous close.
  • Pair to tip in 71.40-71.70 range today.
  • The Indian rupee was little changed against the dollar in early trade, as investors awaited monetary policy decision at home and a speech from the Federal Reserve Chairman Jerome Powell, both due tomorrow. Rupee is seen consolidating at the current level amid lack of triggers today. A dovish RBI will aid rupee’s gains as rate cut is seen as growth-positive, helping equity and bond market valuation and thereby attracting capital inflows. Persistent dollar outflows post interim budget from domestic bonds is a cause of concern for the rupee, but inflows in equities has limited the impact.

Global Currency

  • The dollar managed to rise although U.S. Treasury yields declined the previous day and pulled back from one-week highs. dollar is managing to draw support in spite of lower Treasury yields thanks to a combination of a dovish-sounding Federal Reserve and U.S. data, which has been relatively strong on the whole recently.
  • The euro was little changed at $1.1407 EUR after slipping 0.25 percent the previous day to its lowest since Jan. 28. The single currency was pressured after a survey released on Tuesday showed euro zone businesses expanded at their weakest rate since mid-2013 at the start of the year.

Global Markets

  • Oil prices edged higher for the first time in three sessions on Wednesday, although concerns over the outlook for the global economy capped gains. U.S. crude oil were at $53.74 per barrel.
  • The State of the Union and what President Donald Trump tell Congress is giving a gold a bid even as the dollar retains its upward bias. Fresh concerns about the U.S. economy after a back-to-back slump in durable goods orders and services sector data boosted the yellow metal in the spot market.

Global Markets at one Glance

Markets Today In INR % Change
USD/INR 71.53 71.545 0.02
EUR/USD 1.14 81.54 -0.07
GBP/USD 1.2955 92.67 0.03
USD/JPY 109.806 0.65 0.16
SEK/INR 9.1202 7.8430 -0.0009
DKK/INR 6.3852 11.2025 0.0325
AUD/USD 1.3978 -0.09
1M 2.51313 -0.42229  
3M 2.73438 -0.33943  
6M 2.79575 -0.29629  
1Y 2.98013 -0.16814  
Index Today % Change
NIFTY 11012.9 0.72
SENSEX 36871.2 0.69
BANK NIFTY 27376.3 0.38
SGX NIFTY 9347.5 0.33
NIKKEI 20844.45 -0.19
HANG SENG 27990.21 0.21
SHANGHAI 2618.2323 1.3
ASX200 6033.7 0.46
DOW JONES 25411.52 0.68
S&P500 # 2737.7 0.47
NASDAQ # 7023.521 0.91
Key Events of the Day
Date Time Currency Event Forecast Previous
6-Feb-2019 14.30 INR Interest Rate Decision 6.50% 6.50%
6-Feb-2019 19.00 USD Building Permits 1.290M 1.328M
6-Feb-2019 Tentative USD Core Durable Goods Orders (MoM) 0.2% -0.3%
6-Feb-2019 19.00 USD Core Retail Sales (MoM) 0.0% 0.2%
6-Feb-2019 Tentative USD GDP (QoQ) 2.6% 3.4%

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