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India Rupee Rises For 2nd Day On Fed Chief Powell’s Remarks

7 January 2019 / Evening Brief

Indian Rupee

  • The rupee settled at 69.68 against 69.72 at the previous close. The local unit moved in 69.2450-69.93 per dollar band intra-day.
  • The Indian rupee rose for a second session against the dollar, as the Federal Reserve chairman’s comments that suggested the U.S. central bank will evaluate performance of the economy in deciding monetary policy raised bets over likely pause in policy tightening. Weak dollar drove the local currency higher, as Powell’s comments were the major factor at play today that led to a rally in the most emerging market currencies. But later in the day, talks over likely revenue shortfall took a toll on rupee and boosted fiscal concerns. Spike in volatility today is expected to be a theme for the rest of the week.

Global Currency

  • The dollar fell for a third consecutive day against its rivals on Monday on growing bets the U.S. central bank will press the pause button on its rate hike cycle in the coming months. Notwithstanding strong monthly U.S. jobs data for December last week, market watchers believe the world's biggest economy is losing momentum with Federal Reserve chair Jerome Powell's comments adding to expectations the central bank may adopt a more cautious outlook.
  • The euro gained ground against the U.S. dollar, with EUR/USD advancing 0.37% to 1.1434. The pound was a touch higher, with GBP/USD rising 0.13% to 1.2741.

Global Markets

  • Oil prices rose by 2 percent on Monday, extending a rally from December's 18‐month lows with support from OPEC production cuts and steadying share markets. Oil has gained nearly 12 percent since last Monday, its biggest week-on-week rally in two years.
  • Gold rose on Monday as the dollar fell on expectations that the U.S. Federal Reserve would halt its rate-hiking cycle for the year, lifting demand for the metal from holders of other currencies.

Global Markets at one Glance

Markets at 5.00pm In INR % Change
USD/INR 69.69 69.69 0.2
EUR/USD 1.14389 79.71 0.56
GBP/USD 1.27455 88.78 0.38
USD/JPY 108.376 0.64 0.27
SEK/INR 8.9440 7.7918 0.0308
DKK/INR 6.208 11.2250 0.49
AUD/USD 1.4034 49.64 0.21
DXY 95.963 -0.22
Index Today % Change
NIFTY 10771.8 0.41
SENSEX 35850.16 0.43
NIKKEI 20038.97 2.44
HANG SENG 25835.7 0.82
SHANGHAI 2533.0887 0.72
CAC# 4715.68 -0.45
FTSE # 7264.61 0.0042
DAX # 10711.36 -0.52
Commodities Today % Change
GOLD # 1290.88 0.47
SILVER# 15.695 0
BRENT # 58.37 2.3
NYMEX # 49.1 2.38
Today Today
OPEN 69.4200
HIGH 69.9300
LOW 69.2450
CLOSE 69.6800

Key Events of the Day

Date Time Currency Event Actual Forecast Previous

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