USD/INR opens up tracking higher crude oil prices, strong dlr

10 July 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 68.61 pair now at 68.62 against 68.54 previous close.
• Pair to tip in 68.50-68.75 range today.
• Dollar/rupee opened up Wednesday tracking higher crude oil prices amid a strengthening dollar ahead of the Fed Chair Jerome Powell's testimony before the Congress, traders said. Dollar is also strong which is supporting the spot pair. The dollar continued to trade higher against its other counterparts tracking higher Treasury yields on reduced bets of aggressive rate cut action by the US Fed in the upcoming months. Investors now focus on the upcoming Fed Chair Jerome Powell's two-day testimony to the Congress due on Wednesday and Thursday.

Global Currency

• The dollar edged toward a three-week high against a basket of major currencies on Wednesday, as an unwinding of bets on deep U.S. interest rate cuts pushed Treasury yields higher. Expectations for a 50 basis point rate cut at a Fed meeting later this month have evaporated, but investors still expect a 25 basis point rate cut due to weak inflation and worries about the U.S.-China trade war.
• Sterling GBP=D4 was last quoted at $1.2455 after skidding to a new six-month low of $1.2439 on Tuesday, with Brexit jitters and growing expectations of a Bank of England rate cut adding to the currency's weakness.

Global Markets

• Oil prices rose on Wednesday, led by U.S. crude after an industry group reported that U.S. stockpiles fell for a fourth week in a row, alleviating concerns about oversupply amid global trade tensions.
• Gold prices slipped on Wednesday as higher Treasury yields lifted the dollar, while markets awaited testimony from Federal Reserve Chair Jerome Powell for clarity on an expected U.S. rate cut. Spot gold was down 0.4% at $1,391.98 per ounce.

Global Markets at one Glance

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