USD/INR Higher After RBI Announces Forex Swaps; FX Premiums Eyed

The Indian rupee little changed at 69.67 pair now at 69.58 against 69.5350 previous close.
Pair to tip in 69.50-70.00 range today.
USD/INR opens higher after RBI says it will inject long-term rupee liquidity via USD/INR 3-year swaps. RBI after market close yesterday says it will conduct USD/INR Buy/Sell $5 billion swap auction for 3 years on March 26 to infuse rupee liquidity. “RBI’s swap may prompt a cash dollar shortage, at least temporarily, as it mops up dollars from the spot market. This may lead to rupee coming under pressure in the immediate term.

The dollar pulled ahead from a nine-day low on Thursday, largely helped by the pound snapping back after a sharp rally made on Brexit relief. The dollar index, a gauge of the currency's strength against six major counterparts, was up 0.1 percent at 96.633 .DXY . It shed 0.4 percent overnight, at one point brushing a nine-day trough of 96.385. The dollar was 0.35 percent higher at 111.53 yen .
The pound has already made a lot of ground, and since its gains are mostly generated by expectations rather than fundamentals, its current rally looks to have run its course. British lawmakers are widely expected to vote on Thursday to delay Britain's departure from the EU, currently scheduled for March 29.

Brent crude oil prices on Thursday hit their highest so far this year, pushed up by ongoing supply cuts led by OPEC and by U.S. sanctions against Venezuela and Iran. An unexpected dip in U.S. crude oil inventories and production also lifted prices, traders said.
Gold held close to two-week highs on Thursday as the U.S. dollar eased after British lawmakers rejected a no-deal Brexit in any scenario and as tepid U.S. inflation data reduced the chance of future U.S. interest rate hikes.

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