USD/INR opens down on weak dlr, higher risk-appetite

10 June 2019 / Morning Brief

Indian Rupee

• USD/INR opens down on weak dlr, higher risk-appetite
• Pair to tip in 69.20 -69.55 range today.
• Dollar/rupee opened lower on Monday on improved risk-appetite following a tweet by US President Donald Trump on a successful trade deal with Mexico amid a weak greenback after a lower-than-expected US employment data on Friday. Few foreign banks sold tracking the weak dollar. Optimism around the Us Mexico deal in the weekend boosted risk-appetite globally. The dollar plunged against its other major counterpart later of Friday after a dismal US jobs data fanned hopes of a Fed rate cut later this year.

Global Currency

• Group 20 finance leaders on Sunday said that trade and geopolitical tensions have "intensified", raising risks to improving global growth, but they stopped short of calling for a resolution of the deepening U.S.-China trade conflict. President Donald Trump had threatened to impose 5% import tariffs on all Mexican goods starting on Monday.
• Those views were bolstered on Friday when data showed nonfarm payrolls increased by 75,000 jobs last month, much smaller than the 185,000 additions estimated by economists in a Reuters poll, suggesting the loss of momentum in economic activity was spreading to the labour market. funds rate futures are still pricing in more than two 25-basis point rate hikes by the end of this year even after their retreat early on Monday after the U.S.-Mexico migration deal.

Global Markets

• Gold prices retreated from a 14-month peak on Monday after an agreement between the United States and Mexico to avert a tariff war crimped safe-haven demand for the yellow metal.
• Oil prices rose on Monday after Saudi Arabia said producer club OPEC and Russia were likely to keep withholding supplies, and in relief as the United States withdrew its threat to impose import tariffs on Mexico, removing one cloud over the global economy.

Global Markets at one Glance

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