Indian Rupee Below 74 On Report RBI Head Considering Resignation

31 October 2018 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 73.92 pair now at 74.07 against 73.6750 previous close.
• Pair to tip in 73.70- 74.20 range today.
• The Indian rupee fell to a near-three week low against the dollar on reports that the central bank head is contemplating resigning amid differences with the federal government. The risk is that the latest on the conflict between the government and RBI will further hurt confidence of foreign investors. They have consistently been on the selling side in recent weeks on Indian equities and this development could accelerate those outflows.

Global Currency

• The dollar hovered near 16-month highs versus a basket of its major rivals after gaining overnight as traders bet on the relative outperformance of the U.S. economy and continued rate increases by the Federal Reserve.
• The Fed staying ahead of the curve on its tightening path would be further underscored by expectations the Bank of Japan would leave its easy policy intact when it reviews rates later in the day. dollar strengthened to a three-week high versus the Japanese yen JPY= trade at 113.21, having gained 0.6 percent the previous day.
• The euro zone economy grew less than expected in the third quarter. euro EUR= changed hands at $1.1343, steady from its New York close. The single currency has lost 2.3 percent versus the greenback in October.

Global Markets

• Oil prices climbed for the first time in three days on Wednesday, but rising supply and fears over the outlook for demand amid the U.S.-China trade war kept pressure on the market.
• Gold prices fell on Tuesday as concerns about a further escalation of the U.S.-China trade war boosted the U.S. dollar, eroding bullion's appeal as it tested a key technical support. Spot gold was down 0.5 percent at $1,23.81 per ounce.

Global Markets at one Glance

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