India Rupee Lower On Subdued Risk Appetite; Exporters Watched

25 March 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.06 pair now at 69.07 against 68.95 previous close.
• Pair to tip in 68.85-69.25 range today.
• The Indian rupee fell against the dollar in early trade, in line with most Asian currencies as appetite for risk assets took a hit amid concerns about a potential U.S. recession. Investors are discounting potential foreign fund outflows from local equity on risk-off rally in global markets. We are also seeing some retracement in the strength of the local unit as year-end inflows near an end. Importers’ demand for the dollar for month-end payments will further weigh on the local unit. However, exporters may sell dollars at around 69.20-69.25 levels.

Global Currency

• The Turkish lira rebounded, recouping some of Friday’s losses, after President Recep Tayyip Erdogan warned that bankers deemed responsible for speculating against the currency would be punished. The lira rose 1.3% to 5.6819 versus the dollar as of in Singapore.
• The pound was 0.1 percent lower at $1.3200 GBP. Sterling had rallied 0.8 percent on Friday, helped by a weaker euro and after European Union leaders gave British Prime Minister Theresa May a two-week reprieve to decide how Britain will leave the European Union. GBP.

Global Markets

• Oil prices dropped by almost 1 percent on Monday, with concerns recession could be looming outweighing supply disruptions from OPEC's production cutbacks and from U.S. sanctions on Iran and Venezuela.
• Gold prices firmed on Monday as concerns about a potential U.S. recession and decelerating global growth weighed on stock markets, which increased appetite for safer assets. The metal last week posted its third consecutive weekly gain.

Global Markets at one Glance

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