India Rupee Steady As Importers’ Bids Cap Gains On Powell Remarks

11 January 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 70.42 pair now at 70.38 against 70.4125 previous close.
• Pair to tip in 70.30- 70.80 range today.
• The Indian rupee was little changed against the dollar in early trade, as importers’ demand for the U.S. currency offset gains led by broad weakness in the greenback after Federal Reserve Chairman Jerome Powell reiterated his view to be patient on interest rates. Importers’ demand for defence‐related payments and oil importers bids added pressure on the rupee, making it Asia’s worst performing currency for the week.

Global Currency

• The dollar fell versus its major peers on Friday, as investors grew increasingly confident that the U.S. Federal Reserve may hit the pause button on monetary tightening this year. Fed Chairman Jerome Powell reiterated on Thursday the U.S. central bank has the ability to be patient on monetary policy given that inflation remains stable. Markets are now pricing in no further rate hikes by the Fed this year.
• The euro gained 0.2 percent to $1.1519, after losing 0.4 percent of its value in the previous session. The single currency has been pressured by a slew of weaker-than-expected economic data, especially from France and Germany. European Central Bank is widely expected to remain accommodative in 2019, which should keep a lid on the single currency.

Global Markets

• Oil slipped on Friday amid concerns over the outlook for the global economy, but output cuts agreed by major exporters underpinned crude prices and kept markets on track for a strong weekly climb.
• Gold prices climbed on Friday as the dollar fell back on expectations the U.S. central bank may pause interest rates hikes if the U.S. economy slows this year, while investors awaited news on progress in the Sino-U.S. trade talks.

Global Markets at one Glance

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