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India Rupee Logs 2nd Weekly Fall On Dollar Strength; Inflows Aid

8 February 2019 / Evening Brief

Indian Rupee

  • The rupee settled at 71.30 against 71.45 at the previous close. The local unit moved in 71.0350-71.4175 per dollar band intra-day.
  • The Indian rupee fell for a second straight week against the dollar, on broad greenback strength amid weakness in the euro, even as lower oil prices and likely foreign fund inflows in local bonds following a surprise rate cut at home restricted further losses. Dollar strength will continue to weigh on the rupee. However, further losses were capped as traders cut their long positions as a dovish policy yesterday drove FPIs’ interest in Indian bonds, particularly the corporate ones. Likely dollar inflows from a European telecom company also helped the local unit to pare some losses.

Global Currency

  • The dollar was holding close to two-week highs against the euro in early trading in Europe Friday after a report downplaying the chances of the U.S. and China ending their trade war. But the dollar’s strength is also a function of other currencies’ weakness right now, especially since the Federal Reserve has effectively put further interest rate increases on hold.
  • The British pound has been range-bound since the Bank of England’s press conference Thursday, where Governor Mark Carney repeated that the next interest rate move could be up or down, depending how Brexit plays out. “The Monetary Policy Committee are wage hawks and would be in hiking mode if not for Brexit,”.

Global Markets

  • Brent oil inched up on Friday but was heading for a weekly loss, pulled down by worries about a global economic slowdown, although OPEC-led supply cuts and U.S. sanctions against Venezuela provided crude with some support.
  • Gold held steady on Friday en route to its first weekly loss in three, pressured by gains in the dollar, but kept above the $1,300 level by concerns over economic growth in Europe and elsewhere.

Global Markets at one Glance

Markets at 5.00pm In INR % Change
USD/INR 71.31 71.31 0.02
EUR/USD 1.13377 80.85 -0.05
GBP/USD 1.2962 92.39 0.08
USD/JPY 109.842 0.65 -0.09
SEK/INR 9.2751 7.6883 -0.0135
DKK/INR 6.353 11.2250 0.49
AUD/USD 1.4125 -0.12
DXY 96.582 0.08
Index Today % Change
NIFTY 10943.6 -1.14
SENSEX 36546.48 -1.15
NIKKEI 20333.17 -2.01
HANG SENG 27946.32 -0.16
SHANGHAI 2618.2323 1.3
CAC# 4994.24 0.17
FTSE # 7264.61 0.0042
DAX # 11015.18 -0.06
Commodities Today % Change
GOLD # 1310.75 0.05
SILVER# 15.675 0
BRENT # 61.87 0.39
NYMEX # 52.41 -0.44
Today Today
OPEN 71.3800
HIGH 71.4175
LOW 71.0350
CLOSE 71.3000

Key Events of the Day

Date Time Currency Event Actual Forecast Previous

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