Indian Rupee Higher As RBI Likely Steps In, Yuan Rebounds
19 September 2018 / Morning Brief
Indian Rupee
The Indian rupee little changed at 72.71 pair now at 72.62 against 72.9750 previous close.
Pair to tip in 72.45- 72.90 range today.
The Indian rupee rebounded from day’s low against the dollar, as state-run and private banks stepped up dollar sales, likely on behalf of the central bank, restricting the local unit from falling below 73 level. Dollar bids from foreign banks at open led the rupee near its record low, while overall sentiment remains fragile for the local unit.
Global Currency
The dollar index .DXY =USD stood almost flat at 94.602, after having touched a seven-week low of 94.308 the previous day. The Federal Reserve is widely expected to raise interest rates twice more before the end of year.
The Japanese yen stood near-two-month lows as financial markets took fresh U.S. tariffs on Chinese goods in their stride and as U.S. bond yields shot up to four-month highs on fears of higher inflation. The yen dropped to 112.395 yen per dollar JPY= on Tuesday.
Sterling held firm on hopes about progress towards a Brexit deal ahead of an informal European Union summit in Salzburg on Wednesday and Thursday. The pound hit a high of $1.3175, its highest level in almost eight weeks and last stood flat at $1.3152.
Global Markets
Oil futures rose more than 1 percent on Tuesday on signs that OPEC would not be prepared to raise output to address shrinking supplies from Iran, and as Saudi Arabia signaled an informal target near current levels. Brent crude futures rose 1.3 percent, to settle at $79.03 a barrel.
Gold prices turned negative on Tuesday as the dollar strengthened following news that China would retaliate against a new round of U.S. tariffs on its goods. U.S. Treasuries also rose, helping boost the dollar but pressuring gold.
