The Indian rupee little changed at 72.20 pair now at 72.00 against
71.85 previous close.
Pair to tip in 71.90- 72.30 range today.
The Indian rupee slipped against the dollar in early trade after the
appointment of former Economic Affairs Secretary Shaktikanta Das
as the new head of the central bank, who could prompt a more
dovish stance by the central bank on interest rates. We believe that
Das stands in the neutral‐to‐slightly dovish spectrum on monetary
policy. The MPC structure will ensure policy continuity, but since Das
replaces a more hawkish Patel, the MPC’s composition, at the
margin, will become relatively less hawkish.
Global Currency
The dollar held near a one‐month high against its peers on
Wednesday, supported by a rebound in U.S. government bond yields
and weakness of the pound as its battering from uncertainty about
Brexit continued.
The pound suffered further on Tuesday on media reports that May's
parliamentary colleagues believed they had sufficient numbers to
mount a no‐confidence vote in her leadership. British currency was
little changed at 1.2495 after dropping to 1.2480 overnight, its
weakest since April’17. The currency has lost 1.8 percent this week.
Global Markets
Oil prices climbed by more than 1 percent on Wednesday, lifted by
expectations that an OPEC‐led supply cut announced last week for
2019 would stabilise markets as well as hopes that long‐running
Sino‐American trade tensions could ease.
Gold prices were steady early on Wednesday, supported by
expectations of fewer rate hikes by the U.S. Federal Reserve next
year, while palladium traded at a premium to gold. U.S. gold futures
rose 0.2 percent to $1,249.9 per ounce.
