The Euro Surged Above $1.21 For The First Time In Three Years On Friday
EVENING WRAP
Indian Rupee
- The rupee settled at 63.63 against 63.6550 at the previous close. The local unit moved in 63.4650-63.7225 per dollar band intra-day.
- The Indian rupee posted its biggest weekly fall in about nine weeks, as importers stepped up dollar purchases amid a steady rise in global crude oil prices that could stoke inflation.
- For the week, the rupee ended down 0.4% against the dollar, its steepest fall since the week ended Nov.10. The U.S. financial markets will remain shut on Jan. 15 for Martin Luther King Jr. Day.
Global Currency
- The dollar hit fresh four-month lows against other major currencies on Friday, as Thursday's downbeat U.S. economic reports continued to weigh and as investors eyed the release of key U.S. retail sales and inflation data due later in the day.
- The U.S. dollar had gained ground earlier in the day after China’s foreign exchange regulator said that a report about Beijing slowing or halting its U.S. bond buying may be based on erroneous information and could be "fake".
- The euro surged above $1.21 for the first time in three years on Friday, on growing expectations that the European Central Bank hinted is getting ready to wind down its massive monetary stimulus programme.
Global Markets
- Oil prices eased from three-year highs on Friday but were still on track to end the week higher for a fourth week in a row. Brent crude futures (LCOc1) traded 15 cents lower at $69.11 a barrel at 1011 GMT. The contract broke above $70 a barrel on Thursday for the first time since December 2014.
- U.S. commercial crude oil stocks fell almost 5 million barrels in the week to Jan. 5, to 419.5 million barrels, or slightly below the five-year average of just over 420 million barrels, the target for OPEC and others involved in output cuts.
- Gold prices rose for a third session on Friday to hit their highest since September. Demand for physical gold remained lacklustre across top Asian centres this week as buyers were put off by a rally in prices, but an approaching Chinese New Year could reignite appeal for the yellow metal.
