USD/INR opens down on lower crude oil prices, weak dlr

3 June 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.50 pair now at 69.47 against 69.6750 previous close.
• Pair to tip in 69.30-69.60 range today.
• Dollar/rupee opened at a one-week low on Monday tracking a sharp fall crude oil prices amid a weakness in the dollar. Brent oil prices fell near $60 a barrel due to fears of global recession affecting demand. The dollar is weak tracking falling US Treasury yields. Dollar/rupee opened at Rs 69.50/$1 Monday compared to previous close of Rs 69.67/$1. Crude oil prices plunged when crude markets racked up their biggest monthly losses in six months amid stalling demand as trade wars stoked fears of a slowdown in the global economy.

Global Currency

• The dollar dipped after benchmark 10-year U.S. Treasury yields hit as low as 2.121% on Monday, their lowest since September 2017. They're seriously starting to react to prolonged trade tensions in a risk-off way.
• The yen brushed a more than four-month high against the dollar on Monday as U.S. President Donald Trump's hard stance on trade broadened to countries beyond China, forcing investors to safe-haven assets, including government bonds. With trade issues remaining front-and-center, investor risk appetite has been weighed by fears of a global growth slowdown that has helped stoke government debt demand and triggered an equity selloff.

Global Markets

• Oil prices fell more than 1% on Monday, extending losses of over 3% from Friday, when crude markets racked up their biggest monthly losses in six months amid stalling demand and as trade wars fanned fears of a global economic slowdown.
• Gold prices rose on Monday to their highest in more than two months, with investors seeking refuge in safe-haven assets as heightened Sino-U.S. trade tensions and Washington's threat of tariffs on Mexico stoked worries of a global recession.

Global Markets at one Glance

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