USD/INR opens up on strong dlr, higher crude oil price

26 June 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.40 pair now at 69.45 against 69.34 previous close.
• Pair to tip in 69.30-69.60 range today.
• Dollar/rupee opened higher Wednesday tracking a strong dollar after Fed Chair curbed expectation of aggressive rate cut, while higher crude oil prices further supported dollar demand. Oil is trading up and dollar is strong as Fed chair curbed hopes of a potential rate cut. Both support the spot pair. Crude oil prices edged higher as supply constraints resurfaces on expectation of a declining US crude stocksFed Chairman Jerome Powell on Tuesday stressed the central bank's independence from US President Donald Trump, who is pushing for aggressive rate cuts.

Global Currency

• The dollar edged up from a three-month low on Wednesday, as investors dialled back expectations for aggressive U.S. rate cuts next month but broader conviction the Federal Reserve will need to ease policy soon capped greenback gains.
• Fed Chairman Jerome Powell on Tuesday stressed the central bank's independence from U.S. President Donald Trump, who is pushing for aggressive rate cuts. While this hosed down expectations for a half percentage point cut at the Fed's July meeting, investors are still expecting at least a quarter percentage point reduction. dollar index against a basket of currencies .DXY stood at 96.176 on Wednesday, just above a three-month low of 95.843 touched.

Global Markets

• Oil prices rose more than 1% on Wednesday to their highest in nearly a month as industry data showed U.S. crude stockpiles fell more than expected, underpinning a market already buoyed by worries over a potential U.S.-Iran conflict.
• Gold prices slipped on Wednesday, moving further away from a six-year peak hit in the previous session, as the dollar gained after Federal Reserve officials played down expectations of aggressive.

Global Markets at one Glance

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