USD/INR rebounds on reports of Saudi Arabia seeking crude from Iraq
19 September 2019 / Evening Brief
Indian Rupee
- The rupee settled at 71.3175 against 71.23 at the previous close. The local unit moved in 71.08-71.37 per dollar band intra-day.
- Dollar/rupee closed flat rebounded during afternoon trades Thursday tracking a sudden spike in crude oil prices after reports of Saudi Arabia seeking crude from Iraq to support refineries. After media reports that Saudi asked Iraq for support, crude jumped and accordingly spot surged. Multiple media reports showed that Saudi Arabia has asked Iraq for as much as 20 million barrels of crude to support domestic refineries. Brent crude oil futures for November delivery traded 2.31% up at $65.07 a barrel.
Global Currency
- The Japanese yen rallied on Thursday after the Bank of Japan kept interest rates on hold, while the dollar struggled to move higher despite the Federal Reserve offering mixed signals about the path for further easing. The yen rose to as high as 107.79 yen before settling at 108.06 JPY, up 0.4% on the day.
- The Bank of Japan kept monetary policy steady - as expected - and signaled the chance of expanding stimulus as early as its next policy meeting in October by issuing a stronger warning over the risks threatening the economy. some in the market had expected the BoJ to signal a stronger chance of more stimulus in the context of central banks easing globally to boost growth.
Global Markets
- Oil prices rose sharply on Thursday, supported by supply risks brought about by last weekend's drone attacks on Saudi oil infrastructure and a cut in U.S. interest rates.
- Gold prices were little changed on Thursday after a sharp fall in the previous session as a lack of clarity in the U.S. Federal Reserve's monetary policy outlook kept investors cautious. Traders are disappointed by the divergence of future rate cut path and the market is unwinding expectations of a few more cuts in the months to come.
Global Markets at one Glance
| Markets at 5.00pm | In INR | % Change | |
| USD/INR | 71.3275 | 71.3275 | 0.26 |
| EUR/USD | 1.10711 | 78.95 | 0.57 |
| GBP/USD | 1.2455 | 88.84 | 0.11 |
| USD/JPY | 107.928 | 0.66 | 0.72 |
| SEK/INR | 9.6879 | 7.3625 | 0.0486 |
| DKK/INR | 6.354 | 11.2250 | 0.49 |
| AUD/USD | 1.4713 | 48.45 | 0.32 |
| DXY | 71.3275 | 71.3275 | 0.26 |
| Index | Today | % Change |
| NIFTY | 10704.80 | -1.25 |
| SENSEX | 36093.50 | -1.29 |
| NIKKEI | 22044.40 | 0.38 |
| HANG SENG | 26468.90 | -1.07 |
| SHANGHAI | 2999.28 | 0.46 |
| CAC# | 5643.20 | 0.40 |
| FTSE # | 7354.55 | 0.55 |
| DAX # | 12410.10 | 0.17 |
| Commodities | Today | % Change |
| GOLD # | 1506 | -0.620 |
| SILVER# | 17.80 | -0.620 |
| BRENT # | 64.96 | 02.12 |
| NYMEX # | 59.01 | +1.670 |
| Today | Today |
| OPEN | 71.5000 |
| HIGH | 71.5100 |
| LOW | 71.1675 |
| CLOSE | 71.2300 |
Key Events of the Day
| Date | Time | Currency | Event | Actual | Forecast | Previous |
| 19-Sep-19 | 14.00 | GBP | Retail Sales (MoM) (Aug) | -0.2% | -0.2% | 0.4% |
| 19-Sep-19 | 14.00 | GBP | BoE Interest Rate Decision (Sep) | 0.75% | 0.75% | 0.75% |
