India Rupee Logs Worst Month In 3 On Fiscal Woes, Oil; Budget Eyed

The rupee settled at 71.0750 against 71.1175 at the previous close. The local unit moved in 71.85-71.19 per dollar band intra-day.
The Indian rupee fell for the second straight month to post its biggest monthly fall in three against the dollar, as fiscal worries and surge in crude oil prices spurred outflows from local assets. Outflows from both local shares and bond markets dragged rupee lower this month, and so far the view remains that it is likely to continue in the next month as well from the equity market ahead of elections. Globally trend of equities has improved, which boosted gains in oil prices as well spurring further outflows. Further move will be influenced by what is announced in the budget tomorrow.

The dollar extended losses against its major rivals on Thursday, plumbing three-week lows after the Federal Reserve dialed back its predictions of future rate hikes this year, amid increasing uncertainty over the global economic outlook. The Fed left interest rates on hold at the conclusion of its meeting on Wednesday and said it would be "patient" before making any further rate hikes, dropping its guidance that ‘further gradual’ rate rises will be needed.
The euro pushed higher, with EUR/USD advancing 0.23% to 1.1504 as the dovish Fed offset a sharp slowdown in German retail sales in December.

Oil prices steadied after two days of gains on Thursday, as lowerthan- expected U.S. fuel stock rises and U.S. sanctions on Venezuelan output boosted investor confidence but U.S.-China trade tensions weighed on sentiment.
Gold inched up on Thursday, holding near a multi-month peak after the U.S. Federal Reserve paused its monetary tightening cycle, denting the dollar and putting bullion on track for its fourth straight monthly gain.

Date	Time	Currency	Event	Actual	Forecast	Previous
31-01-19	14.25	EUR	German Unemployment Change (Jan)	-2K	-11K	-14K

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