India Rupee Lower On Importers' Bids Amid Spike In Oil Prices

The Indian rupee little changed at 70.87 pair now at 70.90 against 70.7950 previous close.
Pair to tip in 70.80-71.20 range today.
USD/INR opens higher after dollar index climbs to near two-month highs amid higher-than-expected US core inflation. Pair now at 70.92 against 70.80 previous close. Dollar index rose 0.4% yesterday, ninth advance in ten sessions, after US core inflation rose by 2.2% in January, higher than 2.1% expected by economists polled by Reuters. Brent crude up 0.4% at $63.86, hovering near highest in almost three months. “The bias is on the upside after importer buying and demand from oil companies prompted an intraday turnaround in pair yesterday. he upward bias will be confirmed if the pair manages to make it past 71.00 quickly.” Pair tipped in 70.80-71.20 range.

The dollar held near three-month highs versus the euro on Thursday, supported by sustained strength in core U.S. inflation and weakerthan- expected data out of Europe.
The greenback was hit earlier this year by the Federal Reserve' shift to a cautious policy stance. However, the latest data suggests the central bank will need to stay vigilant on pricing pressures even as it adjusts to heightened growth risks. trend in core U.S. inflation remains steady, against some concerns of a potential decline..indeed at 2.2 percent year-on-year, the current reading is up from the 1.8 percent reading a year ago.

Oil prices rose on Thursday, buoyed by hopes that potential progress in the latest Sino-U.S. tariff talks would improve the global economic outlook, and as China's trade figures including crude imports beat.
Gold prices rose to hit a peak in more than a week on Wednesday on signs that the U.S. Federal Reserve will likely be patient on further interest rate rises, but rallying global equities kept the metal's gains in check.

Research