India Rupee Jumps On Upbeat Risk Mood After Brexit Deal Changes

12 March 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.75 pair now at 69.59 against 69.88 previous close.
• Pair to tip in 69.40-69.80 range today.
• The Indian rupee hit an over two-month high against the dollar in early trade, aided by buoyant risk sentiment amid changes to the Brexit deal ahead of a vote by U.K. lawmakers. Risk-on rally has lifted the rupee. The local currency opening above its key resistance of 69.80 paved way for further appreciation. Dollar inflows in local stocks continue to be supportive of the domestic unit. However, higher crude oil prices and fears of RBI intervention may keep speculative flows in check.

Global Currency

• The dollar index, which measures the greenback against a basket of rivals, shed 0.2 percent to 97.036. But rising risk appetite weighed on the safe-haven yen, pushing the dollar up 0.16 percent to 111.37.
• The pound surged for a second day as the U.K. government said it had secured changes to its divorce deal from the European Union and planned to hold a vote in the U.K. parliament. Sterling climbed as much as 1.1 percent after gaining 1 percent on Monday amid optimism that progress is finally being made to resolve the Brexit standoff. European Commission President Jean-Claude Juncker urged the British parliament to approve the deal.

Global Markets

• Oil prices rose on Tuesday, lifted by healthy demand and output cuts led by producer group OPEC. A rally in broader financial markets also supported crude futures, although analysts still warned of risks to the global economy.
• Gold rose on Tuesday as the dollar weakened after the European Commission agreed to amendments to the UK's Brexit deal, although gains were limited as the agreement also buoyed sentiment for riskier assets.

Global Markets at one Glance

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