USD/INR opens up on oil bids as crude prices rally

21 June 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.75 pair now at 69.70 against 69.55 previous close.
• Pair to tip in 69.60-69.90 range today.
• Dollar/rupee opened higher Friday on oil importers' dollar demand tarcking a rally in the crude oil prices in international market. After the news of Iran shooting down US drone, US-Iran tension escalated and crude oil prices traded sharply up. Spot tracking higher crude opened up. Oil prices surged after Iran shot down a US drone over the vital oil shipping lane, the Strait of Hormuz, raising fears of a military confrontation between Tehran and Washington. A tweet from the US President Donald Trump that "Iran made a very big mistake!" further aided a rally in crude oil prices.

Global Currency

• The dollar struggled to get on the front foot on Friday, and was poised for a weekly loss against major currencies after the U.S. Federal Reserve joined global peers with plans to cut interest rates to support flagging economic growth.
• Sterling changed hands at $1.2707, on course for a 1.0% weekly gain, which would be its best performance in seven weeks. The Bank of England on Thursday struck a less dovish tone than other central banks as they voted unanimously to keep interest rates on hold at 0.75% and stuck to their message that rates would need to rise, so long as Britain avoids a damaging no-deal exit from the EU.

Global Markets

• Oil prices rose on Friday, with Brent crude heading for its first weekly gain in five weeks on tensions in the Middle East after Iran shot down a U.S. military drone and on hopes for a drop in U.S. interest rates that may stimulate global growth.
• Gold jumped more than 1.5% on Friday, breaking above $1,400 for the first time since September 2013, as hints of a rate cut from the U.S. Federal Reserve took a toll on the greenback and U.S. Treasury yields.

Global Markets at one Glance

Share this post?