India Rupee At 6-Week Low As Upbeat US Data Lifts Dollar

24 April 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.8175 pair now at 69.84 against 69.62 previous close.
• Pair to tip in 69.60-70.00 range today.
• The Indian rupee slumped to a six-week low against the dollar in early trade, as strong U.S. housing data lifted the dollar index to its highest in almost two years, overshadowing rising dollar/rupee forward premiums amid abundant dollar liquidity. Jump in the greenback has outweighed the impact of fall in crude oil prices as well as excessive dollar liquidity after yesterday’s forex swap auction.

Global Currency

• The dollar advanced across the board on Tuesday as financial markets re-opened after the Easter holiday and traders favored the greenback ahead of the release on Friday of U.S. gross domestic product data for the first three months of 2019. The dollar index versus a basket of six major currencies stood at 97.602 .DXY after rising to 97.777 overnight, its highest since June 2017.
• The euro, which has the largest weighting within the dollar index, was a touch lower at $1.1219 EUR= after shedding 0.25 percent the previous day. The European economy looks particularly weak relative to the U.S. economy and this highlights the euro's weakness. The United States is now expected to have experienced firm growth in the first quarter.

Global Markets

• Oil prices inched lower on Wednesday on signs that global markets remain adequately supplied despite a jump to 2019 highs this week on Washington's push for tighter sanctions against Iran. Brent crude futures LCOc1 were at $74.24 per barrel.
• Gold prices fell on Wednesday to hover around a four-month low touched in the previous session, as share markets rose and the dollar gained after strong U.S. housing data dampened concerns about an economic slowdown in the country.

Global Markets at one Glance

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