The rupee settled at 69.22 against 69.16 at the previous close. The
local unit moved in 68.0450-69.3450 per dollar band intra-day.
The Indian rupee fell for a second consecutive week against the
dollar, as foreign investors’ greenback inflows into local assets
slowed in the first week of the new financial year. We expect the
rally in dollar index to sustain amid U.S.-China trade deal optimism in
the coming weeks, if the U.S. jobs data does not surprise on the
downside, which will keep the rupee under pressure. Technical
indicators suggest the upside in the rupee will be limited to 68.80 to
dollar.
Global Currency
The dollar scaled a three-week high versus the yen on Friday, lifted
by expectations that a protracted trade dispute between the United
States and China would be resolved soon. Optimism for a U.S.-China
trade deal helped the dollar hit a three-week high against the yen on
Friday, although moves in broader foreign exchange markets were
limited as investors saw a lot of headlines but no conclusions out of
the trade talks.
The euro rose slightly to 1.1228, its gains capped after data released
on Thursday showed German industrial order dropped in February.
strengthened back towards $1.31 as a senior European Union source
said Donald Tusk was likely to offer Britain a flexible extension of the
date of the country's exit from the bloc of up to one year.
Global Markets
Oil prices declined on Friday, with Brent slipping away from the $70
mark reached the previous day, but both main contracts were set for
weekly gains due to mounting geopolitical risks. Brent crude futures
LCOc1 dropped 16 cents to $69.24 a barrel.
Gold prices slipped on Friday as global stocks firmed and the dollar
rose against the yen, but bullion held above a 10-week low touched
in the previous session ahead of U.S. jobs data.
