USD/INR drops to 2-week low after trading choppy in early morning

3 May 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.39 pair now at 69.28 against 69.56 previous close.
• Pair to tip in 69.20-69.50 range today.
• Dollar/rupee fell to a two-week low after trading choppy in early morning trades Friday as cooling oil and FII inflow hopes weighed. spot pair traded at Rs 69.32/$1 after opening at Rs 69.39/$1 Friday compared to previous close of Rs 69.36/$1. Spot rose to as high as Rs 69.41/$1 before dipping to Rs 69.24/$1, a level last seen on April 15. Dollar/rupee opened up on buying by foreign banks tracking the overall strength in the dollar. Brent is lower.

Global Currency

• The dollar looked set to end the week with a firmer tone on Friday as markets scaled back bets on a U.S. rate cut, though much depends on what jobs data due later in the session says about the health of the economy and wages. The currency has edged higher since Federal Reserve Chair Jerome Powell played down the recent slowing in inflation and saw no reason to cut interest rates.
• The euro was flat at $1.1174 EUR= , having eased back from a $1.1219 top overnight, though it was still a shade firmer on the week. Eurozone manufacturing surveys out on Thursday showed further contraction in April, but at least got no worse. The flow of economic data fits with most central banks taking a cautious line, fearful of downside global growth risks

Global Markets

• Oil prices on Friday were set to fall for the week as surging U.S. output and an expected supply increase from the Organization of the Petroleum Exporting Countries (OPEC) weighed on markets.
• Gold prices on Friday hovered near a four-month low hit in the previous session, after the U.S. Federal Reserve dampened expectations of a rate cut in the near term, boosting the dollar and setting the bullion on course for a weekly drop.

Global Markets at one Glance

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