Indian Rupee Jumps As Oil Plunges To Near 2-Month Low

24 October 2018 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 73.23 pair now at 73.28 against 73.5650 previous close.
• Pair to tip in 73.10- 73.40 range today.
• The Indian rupee rose to a three-week high against the dollar in early trade, supported by an overnight slump in crude oil prices to nearly two-month low. Brent crude prices inching closer to $75 per barrel mark lifted the domestic currency. However, these levels remain attractive for importers and some oil importers. We may see some exporters selling dollars later in the session, while gains in local shares will also aid sentiment.

Global Currency

• The euro was also steady at 1.1472, although bearish sentiment against the common currency amid Italy's budget woes has limited any chance of a rally. The European Commission rejected Italy's draft 2019 budget, saying it brazenly broke EU rules on public spending, and asked Rome to submit a new one within three weeks or face disciplinary action.
• The safe-haven Japanese yen and the Swiss franc held firm against the U.S. dollar on Wednesday as risk-averse investors trimmed their exposure to the greenback in the face of a weak performance on Wall Street. The Japanese yen JPY= was steady at 112.43 in early Asian trade, having gained 0.32 percent on Tuesday and was the best performing currency in the G-10 space in that session.

Global Markets

• Oil prices on Wednesday clawed back a fraction of their hefty losses the day before that came after Saudi Arabia said it would make up for supply disruptions from U.S. sanctions starting next month on Iran's petroleum exports.
• Gold prices nudged up on Wednesday after hitting their highest in over three months in the previous session, with international political and economic uncertainty underpinning safe-haven demand for the metal.

Global Markets at one Glance

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