Indian Rupee Falls As Importers Dollar Bids Overshadow Weak US Data

16 October 2018 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 73.8050 pair now at 73.86 against 73.83 previous close.
• Pair to tip in 73.70- 74.10 range today.
• The Indian rupee gave up early gains, turning lower against the dollar in opening trade, as foreign and private lenders stepped up greenback purchases for importers, outweighing gains triggered from a weaker-than-expected U.S. retail sales data. Two private lenders along with a European and an American bank bought dollars in opening trade.

Global Currency

• The U.S. dollar was on the defensive on Tuesday after weak retail sales data, with the safe-haven yen and Swiss franc benefiting from tensions between the West and Saudi Arabia and amid a standoff on Brexit talks over Britain's plan to exit the EU. The dollar, also sought during times of markets stress, struggled despite weaker equities and broader risk-off sentiment in part as U.S. data overnight suggested consumers were reluctant to spend.
• The sterling changed hands at 1.3155 as investors wait for more clarity over the post-Brexit status of Britain's land border with Ireland. The Euro gained marginally to 1.1581, well off a seven-week low of 1.1429 hit last Tuesday.

Global Markets

• Oil prices rose on Tuesday on signs Iranian oil exports this month have fallen from September ahead of U.S. sanctions against Tehran that are set to start in November. Iran has exported 1.33 million barrels per day (bpd) to countries including India, China and Turkey in the first two weeks of October.
• Gold rose more than 1 percent on Monday to its highest in about 2-1/2 months as investors sought refuge in the metal after mounting tensions between Western powers and Saudi Arabia compounded jitters in global stock markets.

Global Markets at one Glance

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