Indian Rupee Slips To 1-Week Low On Dollar Strength
23 October 2018 / Morning Brief
Indian Rupee
The Indian rupee little changed at 73.70 pair now at 73.81 against 73.5650 previous close.
Pair to tip in 73.55- 73.95 range today.
The Indian rupee fell to a one-week low against the dollar in early trade, tracking broad gains in the greenback, while continuous decline in local shares increased concerns of more foreign fund outflows. Overnight strength in the dollar index amid fall in euro and steady rise in foreign fund outflows have weighed on the rupee. However some respite is expected due to lower crude oil prices. Importers’ dollar demand will be watched for further cues.
Global Currency
The dollar gained against its major peers on Tuesday, reining as the preferred safe haven currency as uncertainty over Brexit negotiations and Italy's free spending budget spooked investors away from the euro and sterling. British Prime Minister Theresa May on Monday said most of the country's deal to exit the EU has been agreed on but repeated her opposition to a EU proposal regarding the Irish border.
The Japanese yen, a safe haven in uncertain times, firmed against the dollar on Tuesday, as the euro and sterling suffered due to doubts over Italy's budget spending and over British Prime Minister Theresa May's future with Brexit talks stalled. The dollar weakened 0.21 in Asian trade to JPY= trade at 112.55 yen.
Global Markets
Oil prices dipped on Tuesday after Saudi Arabia pledged to play a "responsible role" in energy markets, although sentiment remained nervous in the run-up to U.S. sanctions against Iran's crude exports that start next month.
Gold prices inched up early Tuesday as Asian stocks faltered, weighed down by political tensions between Saudi Arabia and Western powers, uncertainties around Brexit and Italy's budgetary woes.
