USD/INR up after opening flat on strong dlr after FOMC minutes

22 August 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 71.56 pair now at 71.68 against 71.56 previous close.
• Pair to tip in 71.50-71.85 range today.
• Dollar/rupee traded up after opening flat Thursday tracking a strong greenback after the minutes from Federal Reserve's July policy meeting calmed expectations on any aggressive rate cut ahead. Dollar strong after the FOMC policy which led gains in spot. The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 98.26 compared to 98.18 at the close of spot rupee market on Wednesday.

Global Currency

• The dollar held gains on Thursday after minutes from the Federal Reserve's last policy meeting hosed down some aggressive expectations the central bank would embark on a series of deep interest rate cuts. Asian currencies are expected to trade in tight ranges on Thursday ahead of U.S. Federal Reserve Chairman Jerome Powell's speech at Jackson Hole on Friday for signs of just how far the U.S. central bank is prepared to lower rates.
• Sterling traded a tad lower at 91.89 pence per euro EURGBP= , on course for its second day of losses, as uncertainty about Britain's divorce from the European Union weighed on the pound. French President Emmanuel Macron said on Wednesday there would be no renegotiation of the terms for Britain's exit from the EU.

Global Markets

• Gold prices were steady on Thursday, holding above the key $1,500 an ounce level, as investors awaited a central bankers' conclave for clues on future interest rate cuts.
• Oil prices edged higher on Thursday after a drawdown in U.S. crude inventories, but lingering concerns over the global economy and a build-up in U.S. refined product stocks kept a lid on gains. Brent crude futures climbed for a fifth consecutive session on Thursday.

Global Markets at one Glance

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