USD/INR down on G-20 positives but higher oil, dlr support

1 July 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 68.89 pair now at 68.89 against 69.0150 previous close.
• Pair to tip in 68.75-69.10 range today.
• Dollar/rupee opened down on Monday as increased prospects of foreign portfolio inflows to local assets weighed, but the surge in crude oil and a broadly stronger dollar supported the pair. The G-20 result was overall risk supportive and that helped the rupee's stronger opening today. But the dollar has strengthened as the trade war-related pressure on the Fed to cut rates has somewhat eased and oil has surged after producers have decided to keep supplies restricted, he said, adding that these conditions will act as a support for the USD/INR.

Global Currency

• The yuan gained and the safe-haven yen slid against the dollar on Monday as appetite for risk-sensitive currencies improved after the United States and China agreed to restart their troubled trade talks.
• After meeting Chinese President Xi Jinping in Japan on Saturday on the sidelines of Group of 20 summit, U.S. President Donald Trump said he would hold back on new tariffs and that China will buy more farm products. also said the U.S. Commerce Department would study over the next few days whether to take Huawei HWT.UL off the list of firms banned from buying components and technology from U.S. companies without government approval.

Global Markets

• Oil prices rose more than $1 a barrel on Monday after Russia agreed with Saudi Arabia to extend supply cuts for another six to nine months ahead of an OPEC meeting this week. U.S. crude futures for August CLc1 rose 88 cents, or 1.5%, to $59.35 a barrel.
• Gold fell more than 1% on Monday to its lowest in more than a week as the dollar strengthened and investors opted for riskier assets after the United States and China agreed to restart trade talks.

Global Markets at one Glance

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