USD/INR opens up on mo-end dlr demand, strong dlr, likely FII outflows form local stocks

29 August 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 71.90 pair now at 71.93 against 71.77 previous close.
• Pair to tip in 71.80-72.20 range today.
• Dollar/rupee opened higher Thursday on month-end dollar demand by oil importers amid a strong greenback. Also, likely FII outflows from local stocks further aided dollar demand. Dollar is strong; month-end dollar demand is also supporting the spot. Also, FIIs pulled out of equities. Crude oil prices floated above $60/bbl after official data confirmed a big drop in US crude inventories, easing concerns of weakening demand, while worries over global economic growth checked gains.

Global Currency

• The U.S. dollar was modestly higher against the yen on Wednesday morning, but the move indicated little change in investor sentiment as the Japanese currency largely clung to its recent gains on growing fears of a global economic downturn. The dollar index, which measures the U.S. currency against a basket of six currencies, rose 0.19% to 98.186 .DXY . The Chinese yuan edged lower to 7.1690 CNH= in offshore markets, not far from the record low of 7.186 it touched on Monday.
• The yen stood at 105.83 per dollar 0.10% weaker on the day, but nevertheless close to the 2-1/2-year high of 104.44 hit on Monday as renewed trade tension sent investors into safe-haven assets like the Japanese currency and government bonds.

Global Markets

• Gold prices climbed up on Thursday, as fears of an economic slowdown continued, amid the protracted Sino-U.S. trade conflict and expectations of monetary stimulus, keeping the save-haven metal in demand.
• Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of U.S. economy.

Global Markets at one Glance

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