India Rupee Gains Amid Foreign Fund Inflows

5 March 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 70.74 pair now at 70.81 against 70.74 previous close.
• Pair to tip in 70.65-71.00 range today.
• The Indian rupee edged higher against the dollar in early trade, helped by bunched-up foreign fund inflows following a long weekend. Foreign banks sold dollars in early trade, while bunched-up flows accumulated in banks’ nostro accounts due to yesterday’s holiday, have hit the markets. Some dollar inflows related to bond markets also helped the rupee. The Mumbai-based dealer expects the rupee to trade in a 70.70-71.00 range today. India’s financial markets were closed yesterday for a local holiday.

Global Currency

• The dollar hovered near a 10-week high against the yen on Friday, thanks to a surge in Treasury yields after U.S. gross domestic product data topped expectations. The dollar suffered brief dips against the yen, a perceived safe-haven, this week as tensions between India and Pakistan flared and as a summit between U.S. President Donald Trump and North Korean leader Kim Jong Un ended without an agreement.
• The euro was steady at $1.1371 EUR= , having slid from a three-week peak of $1.1420 scaled the previous day. Core European bond yields hit a three-week high on Wednesday while a broad indicator of European economic data.

Global Markets

• Oil prices rose on Friday as markets tightened amid output cuts by producer club OPEC, but surging U.S. supply and a global economic slowdown prevented crude from climbing further. International Brent crude futures were at $66.59/ barrel, up 28 cents, or 0.4 %.
• Gold prices hit a two-week low on Friday as upbeat U.S. economic data boosted the dollar, while mounting concerns over a slowdown in global growth offered support to the safe-haven metal. U.S. gold futures GCv1 were down 0.1 percent at $1,314.80 per ounce.

Global Markets at one Glance

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