USD/INR ends at 6-mo high on likely FII outflows, worsening risk-appetite
13 August 2019 / Evening Brief
Indian Rupee
- The rupee settled at 71.40 against 70.80 at the previous close. The local unit moved in 71.02-71.40 per dollar band intra-day.
- Dollar/rupee ended at six-month high Tuesday on likely overseas outflows from local stocks amid heightened risk-aversion in the market supporting safe haven dollar demand tracking political unrest in Hong Kong and sharp fall in Argentina's peso. FIIs pulled out of local equities segments and foreign banks bought dollars most likely on their behalf. Also, globally sentiments are weak due to the political unrest in both Hong Kong and Argentina. The minister gave no indication at a meeting held with foreign portfolio investors.
Global Currency
- The Japanese yen remained near seven-month highs on Tuesday and the U.S. dollar supported, as investors unnerved by the Sino-U.S. trade war, protests in Hong Kong and a crash in Argentina's peso currency sought safety. U.S. Treasury yields have declined steadily recently, and the spread between U.S. and Japanese benchmark 10-year yields has shrunk to its narrowest since November 2016.
- The euro briefly extended an earlier decline after a survey showed German sentiment deteriorated more than expected. have flocked to the yen amid an escalating trade war between China and the United States and worries about a global economic slowdown. The Japanese currency, along with the dollar and Swiss franc, is a safe haven in times of uncertainty.
Global Markets
- Oil prices edged higher on Tuesday as expectations for major producers to further curtail output offset lingering concerns over global demand and rising U.S. production.
- Gold hit a more than six-year high on Tuesday as unrest in Hong Kong and a rout in the Argentine peso drove investors already spooked by the U.S.-China trade war into havens like bullion at the expense of riskier assets such as stocks.
Global Markets at one Glance
| Markets at 5.00pm | In INR | % Change | |
| USD/INR | 71.41 | 71.41 | 0.19 |
| EUR/USD | 1.12135 | 80.14 | 0.22 |
| GBP/USD | 1.20837 | 86.27 | 0.19 |
| USD/JPY | 105.216 | 0.68 | 0.22 |
| SEK/INR | 9.5439 | 7.4823 | |
| DKK/INR | 6.362 | 11.2250 | 0.49 |
| AUD/USD | 1.4777 | 48.33 | |
| DXY | 97.50 | 0.05 | |
| Index | Today | % Change |
| NIFTY | 10959 | -1.65 |
| SENSEX | 36958 | -1.66 |
| NIKKEI | 20455.40 | -1.11 |
| HANG SENG | 25281.30 | -2.10 |
| SHANGHAI | 2797.26 | -0.63 |
| CAC# | 5280.72 | -0.56 |
| FTSE # | 7183.08 | -0.60 |
| DAX # | 11576.30 | -0.88 |
| Commodities | Today | % Change |
| GOLD # | 1538 | +1.390 |
| SILVER# | 17.448 | +2.210 |
| BRENT # | 58.40 | +1.43 |
| NYMEX # | 53.38 | +1.24 |
| Today | Today |
| OPEN | 71.1900 |
| HIGH | 71.4000 |
| LOW | 71.0200 |
| CLOSE | 71.4000 |
Key Events of the Day
| Date | Time | Currency | Event | Actual | Forecast | Previous |
| 13/08/2019 | 14.00 | GBP | Average Earnings Index +Bonus (Jun) | 3.7% | 3.7% | 3.5% |
| 13/08/2019 | 14.00 | GBP | Claimant Count Change (Jul) | 28.0K | 32.0K | 31.4K |
| 13/08/2019 | 14.30 | EUR | German ZEW Economic Sentiment (Aug) | -44.1 | -27.8 | -24.5 |
