USD/INR opens down on weak dlr, improved risk-appetite
5 September 2019 / Morning Brief
Indian Rupee
- The Indian rupee little changed at 71.87 pair now at 71.88 against 72.1150 previous close.
- Pair to tip in 71.60-71.95 range today.
- Dollar/rupee opened down Thursday tracking the weakness in dollar amid improved risk appetite. Dollar is down and risk sentiments remained uplifted on positive global cues. The dollar slid against British pound was lifted by a bill to avert a no-deal Brexit at the end of October, easing market sentiments. Sentiments took a breather on news that US and China trade officials will meet early next month.
Global Currency
- Risk-sensitive currencies such as the Aussie and yuan rallied on Thursday as investors cheered the announcement of U.S.-China trade talks for next month and abandoned safe haven assets such as yen. The early-October talks will be held in Washington, China's commerce ministry announced, following a phone call between China's Vice Premier Liu He, U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer.
- The pound sat around $1.2245 holding overnight gains. They had climbed after British parliament voted on Wednesday to prevent Johnson from taking Britain out of the European Union without a deal on Oct. 31, but rejected his first bid to call a snap election two weeks before the scheduled exit. still leaves Brexit up in the air, with possible outcomes ranging from a no-deal exit to abandoning the whole endeavour, prompting some to sound a note of caution.
Global Markets
- Oil prices rose on Thursday, rebounding from earlier losses, after the U.S. confirmed that talks with China to reach a trade agreement would be held in the coming weeks, giving hope that a dispute that has roiled global economies will be resolved.
- Gold prices fell on early Thursday, with an uptick in equities propped up by positive developments around Brexit deadlock and Hong Kong protests, but prices hovered near over six-year high hit last session.
Global Markets at one Glance
| Markets Today | In INR | % Change | |
| USD/INR | 71.9325 | 71.935 | -0.08 |
| EUR/USD | 1.1026 | 79.31 | -0.2 |
| GBP/USD | 1.224 | 88.03 | -0.19 |
| USD/JPY | 106.636 | 0.67 | -0.37 |
| SEK/INR | 9.7309 | 7.3922 | -0.0064 |
| DKK/INR | 6.4211 | 11.2025 | 0.0325 |
| AUD/USD | 1.4663 | 49.05 | -0.07 |
| TIME | USD LIBOR | EURO LIBOR | |
| 1M | 2.34763 | -0.41543 | |
| 3M | 2.50450 | -0.35929 | |
| 6M | 2.52088 | -0.31129 | 1Y | 2.60925 | -0.22029 |
| Index | Today | % Change |
| NIFTY | 10905.30 | 0.56 |
| SENSEX | 36875.50 | 0.41 |
| BANK NIFTY | 27205.90 | 0.30 |
| SGX NIFTY | 10887.00 | 0.27 |
| NIKKEI | 21115.50 | 2.19 |
| HANG SENG | 26636.00 | 0.43 |
| SHANGHAI | 3003.44 | 1.56 |
| ASX200 | 6604.60 | 0.79 |
| DOW JONES | 26355.50 | 0.91 |
| S&P500 # | 2937.78 | 1.08 |
| NASDAQ # | 7976.88 | 1.30 |
| Key Events of the Day | |||||
| Date | Time | Currency | Event | Forecast | Previous |
| 05/09/2019 | 17.45 | USD | ADP Nonfarm Employment Change (Aug) | 148K | 156K |
| 05/09/2019 | 19.30 | USD | ISM Non-Manufacturing PMI (Aug) | 54.0 | 53.7 |
