Indian Rupee Off Lows On Likely RBI Intervention

6 September 2018 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 71.62 pair now at 71.86 against 71.75 previous close.
• Pair to tip in 71.70- 72.10 range today.
• The Indian rupee came off lows against the dollar in early trade, as greenback sales by several private and state-run lenders, likely on behalf of the central bank, helped offset losses on persistent dollar demand from foreign banks and a large state-run lender. The central bank has been restricting the pace of the rupee depreciation in the last few days and not targeting any level.

Global Currency

• The dollar sagged on Thursday, pressured by the pound which rose after fears of Britain leaving the European Union with no comprehensive agreement faded, although skittish emerging market currencies helped limit the greenback's retreat.
• The dollar index against a basket of six major currencies .DXY stood at 95.034, down 0.15 percent after shedding nearly 0.3 percent overnight when it was nudged away from a two-week high of 95.737.
• The pound, which surged nearly 1 percent at one point after reported that the United Kingdom and Germany were prepared to drop a key sticking point in Brexit negotiations. added 0.1 percent to $1.2918 GBP=D4 after rising 0.4 percent the previous day.

Global Markets

• Oil prices fell more than one percent on Wednesday after a U.S. Gulf storm weakened and moved away from oil-producing areas and as concerns mounted about global trade disputes and Turkey's currency crisis hurting demand. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.15 to settle at $68.72 a barrel.
• Gold prices rose on Wednesday from an 11-day low as the U.S. dollar eased from its recent rally. Gold has fallen 1.5 percent from an Aug. 28 high as currency weakness in emerging markets and concerns over global trade disputes strengthened the dollar, making bullion more expensive for buyers with other currencies.

Global Markets at one Glance

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