USD/INR flat after opening up as higher oil prices offset weak dlr

24 June 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.60 pair now at 69.57 against 69.55 previous close.
• Pair to tip in 69.45-69.70 range today.
• Dollar/rupee turned flat after opening up Monday as higher crude oil prices in the international market offset impact of a weak dollar. Oil prices are up, while dollar continue weakening, countering each other's impact. The US President Donald Trump is now set to announce additional stringent sanctions against Iran later today. The dollar plunged against other major counterparts on increased bets on a possible Fed rate cut in the upcoming July policy. Minneapolis Fed president Neel Kashkari called for a 50 basis point rate cut. where officials ended leaving rates unchanged.

Global Currency

• The euro rose to a three-month high against the dollar on Monday, as bearish bets on the U.S. currency remained solid on prospects of a near-term interest rate cut by the Federal Reserve. The euro stretched its rally last week, up 1.4%, and advanced about 0.15% to $1.1386 EUR= in early Asian trade, its highest since March 22.
• That weighed on the dollar and in turn reinvigorated its counterparts like the euro, which has had troubles of its own including Italy's debt problem and the possibility of the European Central Bank having to ease policy. It is true that the ECB may have to ease policy especially with the Fed having shifted to an easing bias.

Global Markets

• Oil prices climbed on Monday as tensions remain high between Iran and the United States, with U.S. Secretary of State Mike Pompeo saying "significant" sanctions on Tehran would be announced.
• Gold prices extended gains in early Asian trade on Monday, hovering near a six-year peak touched in the previous session, as a weaker dollar and heightened tensions between the United States and Iran underpinned the precious metal.

Global Markets at one Glance

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