USD/INR down as Brent slides; support seen at Rs 69.40/$1

2 May 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.61 pair now at 69.53 against 69.57 previous close.
• Pair to tip in 70.00-70.30 range today.
• Pair to tip in 69.35-69.65 range today.
• Dollar/rupee dropped on Thursday as a slide in oil prices and higher stocks weighed, but upward pressure in the dollar after the slightly hawkish FOMC statement may support the pair near Rs 69.40. Oil bids may curb the fall in the spot pair. However, foreign banks are selling dollars likely on behalf of FIIs as the local stocks have rebounded. Local stocks traded higher on buying by overseas investors helped by earnings optimism and lower crude oil prices.

Global Currency

• The dollar was content to consolidate in Asia on Thursday after recovering from a brief spill overnight when markets were whipsawed by mixed messages on policy from the Federal Reserve. Trading ranges were again tight with both Japan and China on holiday and little in the way of major economic data in the diary. The break was welcome after a volatile session overnight.
• The dollar had taken an initial knock from a surprisingly sharp retreat in the ISM index of manufacturing to 52.8. Sterling was one of the few currencies to buck the dollar, touching a two-week high on Wednesday on speculation Brexit talks between the British government and the main opposition party were making some progress.

Global Markets

• Oil prices fell on Thursday, pulled down by record U.S. crude production that led to a surge in stockpiles. U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 19 cents.
• Gold on Thursday fell to its lowest in a little over one week, after comments from U.S. Federal Reserve Chairman Jerome Powell dashed hopes of a near-term rate cut, boosting the dollar and treasury yields.

Global Markets at one Glance

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