India Rupee Steady As Weak Risk Appetite Offsets Oil Fall Impact

22 January 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 71.2225 pair now at 71.32 against 71.2750 previous close.
• Pair to tip in 71.20- 71.60 range today.
• Rupee was little changed against the dollar in early trade, as tepid risk appetite offset opening gains from a fall in crude oil prices amid global growth concerns. Decline in crude prices has supported the rupee at open, even as risk sentiments in the regional markets remain subdued in an illiquid trade. Importers’ dollar demand is expected to continue. A rangebound session is expected today in absence of any news flows related to India’s interim budget due.

Global Currency

• The dollar hovered near 2-week highs against its peers on Tuesday as a slowdown in China's economy to 28-year lows fanned fresh worries over global growth and prompted investors to move into safe-haven currencies.
• The euro EUR= was flat at $1.1367. The single currency is likely to remain under pressure as growth in Europe's economic powerhouses, Germany and France, is languishing and inflation remains weak. The European Central Bank is widely expected to maintain an accommodative mode for this year.

Global Markets

• Oil prices edged lower on Tuesday as concerns over global economic growth stoked fears over future demand. Trade war concerns have reduced global growth expectations and with it comes a lower demand for energy. Brent crude oil were down 10 cents, or 0.2%, at $62.64. They closed down 0.1 percent on Monday.
• Gold prices had been rising in North American and late London trade as the dollar runs into supply. Gold is currently trading at $1,280/oz, down from $1,283. the US dollar was favoured by investors at the start of the week following mixed Chinese data which made for assorted sentiment in markets surrounding the outlook for global.

Global Markets at one Glance

Share this post?