India Rupee Flat As Month-End Dollar Demand Offsets Early Gains

25 January 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 71.00 pair now at 71.07 against 71.07 previous close.
• Pair to tip in 70.90-71.20 range today.
• The Indian rupee was little changed against the dollar, as corporate greenback demand and gains in crude oil prices offset a broad rally in regional currencies. Rupee is going to have a tough time to strengthen past the 71 level until there is more clarity on India’s fiscal position. Next Friday’s interim budget will provide more clarity on rupee’s direction in the coming months.

Global Currency

• Sterling scaled an 11-week high on Friday after The Sun reported that Northern Ireland's Democratic Unionist Party has privately decided to offer conditional backing for Prime Minister Theresa May's Brexit deal next week. The pound has climbed about 1.8 % this week, moving above the key psychological level of $1.30 to the dollar on hopes the UK might avoid a no-deal Brexit on March 29.
• The dollar held firm against most of its peers in the face of the global economic worries, with the European Central Bank proving the latest warning about the dimming outlook, forecasting weaker-thanexpected growth in the eurozone for the near term. in the week, China reported its weakest growth in three decades, and the International Monetary Fund downgraded its forecasts for the global economy for this year and next.

Global Markets

• Oil prices rose by more than one percent on Friday as turmoil in Venezuela triggered concerns that its oil exports could soon be disrupted.
• Gold prices held steady on Friday, supported by worries over a slowing global economy and a prolonged US government shutdown, but the safe-haven metal's gains were capped by a strong technical resistance and a firmer US dollar.

Global Markets at one Glance

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