Indian Rupee Hits Record Low On Upbeat US Jobs Data, Trade Woes

10 September 2018 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 72.18 pair now at 72.38 against 71.73 previous close.
• Pair to tip in 72.10- 72.50 range today.
• The Indian rupee plunged to another record low against the dollar in opening trade, dragged by broad strength in the greenback after an upbeat U.S. jobs report and escalating trade tensions between the U.S. and China. Constant demand from importers, foreign banks and lack of exporters selling continue to keep the local unit lower. RBI has also restricted itself to mild interventions.

Global Currency

• The dollar edged higher against a basket of currencies on Monday thanks to strong U.S. August jobs data and amid fears of a potentially major escalation in the China-U.S. trade conflict. U.S. President Donald Trump warned on Friday that he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on another $267 billion of goods in addition to the $200 billion already facing the risk of duties.
• The euro EUR= was 0.07 percent higher at $1.1545, paring some losses after falling more than a percent during the previous session in the wake of the U.S. job data. The Fed is all but certain to raise rates a third time this year in late September.

Global Markets

• Oil prices rose on Monday as U.S. drilling for new production stalled and as the market eyed tighter conditions once Washington's sanctions against Iran's crude exports kick in from November. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $68.19 per barrel at 0344 GMT, up 44 cents, or 0.65 percent, from their last settlement.
• Gold held on to a small loss from the previous session on Monday, as the dollar firmed amid expectations of a U.S. Federal Reserve interest rate hike in September and fears of escalating trade tensions between the United States and China.

Global Markets at one Glance

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