India Rupee Falls Tracking Asian Peers; RBI’s Eased ECB Rules Aid

17 January 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 71.15 pair now at 71.33 against 71.24 previous close.
• Pair to tip in 71.05- 71.45 range today.
• The Indian rupee was lower against dollar in early trade, as weakness in most Asian currencies outweighed opening gains triggered after the central bank eased rules for companies’ overseas borrowing. Relaxation in ECB rules has increased expectations of foreign fund inflows, which helped the rupee at the open. However, rebound in dollar index has weighed on the Asian units and lack of further cues and concerns surrounding India’s fiscal slippage will keep the currency rangebound.

Global Currency

• The British pound was stable after May survived the no-confidence vote and invited other party leaders for talks to try to break the impasse on a Brexit withdrawal deal after the proposal she presented was voted down by lawmakers on Tuesday. outline for May's Plan 'B' is due by Monday and the market assumes there will have to be an extension of the Article 50 exit date past March 29.
• The dollar took a breather on Thursday following its recent strong gains against key rivals, while sterling steadied after British Prime Minister Theresa May's government won a no-confidence vote in parliament. The dollar index .DXY , which measures the greenback against six major peers, was a shade higher at 96.133 after gaining about 1 percent over the previous five sessions.

Global Markets

• U.S. oil prices inched down on Thursday, with traders worried about the strength of demand in the United States after gasoline stockpiles there grew last week by far more than analysts had expected.
• The U.K.'s political and economic problems and a no-confidence vote on P.M Theresa May after her failed Brexit deal vote are keeping alive gold bugs' hopes of recapturing highs of above $1,300 per ounce, even as China's attempts to steady its economy tamp down.

Global Markets at one Glance

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