India Rupee Rises As Local Equities Scale New Heights

18 April 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.46 pair now at 69.50 against 69.60 previous close
• Pair to tip in 69.35-69.60 range today.
• The Indian rupee advanced in early trading tracking record highs for local equities, which helped overcome tepid regional cues. The pair is likely to trade in a narrow range in absence of any technical and macro catalysts. The pair lacks momentum in either direction currently, unless it moves convincingly past 69.70 or slips below 69.20. Foreign investors continued to put money into Indian equities amid bets that Prime Minister Narendra Modi will receive a second term. Foreigners have bought more than $2 billion of Indian equities so far this month to add to last month’s near $5 billion purchases.

Global Currency

• The euro was steady on Thursday after evidence of strength in China improved the outlook for the global economy, with the market looking next to European indicators to provide the currency with a further boost. The euro was lifted after data on Wednesday showed China's economy grew at a steady 6.4 percent pace in the first quarter, defying expectations for a further slowdown, as industrial production surged and consumer demand showed signs of improvement.
• The U.S. currency inched down 0.1 percent to 111.955 yen JPY after briefly touching a four-month peak of 112.17 on Wednesday amid a bounce in U.S. Treasury yields to a one-month high.

Global Markets

• Oil prices dropped on Thursday as the impact of plentiful U.S. production offset a surprise decline in U.S. inventories, leaving international benchmark Brent retreating from a five-month high touched in the previous session.
• Gold fell to its lowest since end-December on Thursday as indications that the global economy might not be as pain-stricken as previously feared prompted investors to take risks ahead of a slew of economic data. Spot gold fell 0.1 percent to $1,271.97 per ounce.

Global Markets at one Glance

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