Indian Rupee Off Highs On Weak Shares; Heads For 3rd Qtrly Fall

28 September 2018 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 72.49 pair now at 72.63 against 72.59 previous close.
• Pair to tip in 72.40- 72.80 range today.
• The Indian rupee was little changed against the dollar in early trade, as foreign banks’ dollar purchases amid weak local shares offset early gains on upbeat risk appetite. Risk-on rally in global markets and gains in local shares has supported sentiment for the rupee. However, weakness in local shares are weighing on the local unit. An American lender was among the major buyers. Dollar inflows for quarter-end & ahead of the weekend will support later today.

Global Currency

• The dollar stood tall against its peers on Friday, hovering near a nine-month high versus the yen, after data reinforced upbeat views about the U.S. economy and backed the Federal Reserve's signal for a steady course of rate increases over the next year.
• U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe agreed on Wednesday to start trade talks in an arrangement that, for now, protects Japanese automakers from further tariffs, seen as a major threat to the export-dependent economy.
• The euro nudged up 0.07 percent to $1.1648 EUR= after slumping almost 0.9 percent overnight.

Global Markets

• Oil edged higher on Thursday, driven by the prospect of a shortfall in global supply once U.S. sanctions against major crude exporter Iran come into force in five weeks. The market continues to move higher on fears that the loss of Iranian exports is not going to be made up.
• Gold prices fell 1 percent on Thursday and broke below their recent trading range around $1,190-$1,210 an ounce after the U.S. dollar surged, making bullion more expensive for buyers using other currencies. Spot gold declined 0.8 percent to $1,184.54 an ounce

Global Markets at one Glance

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