The RBI may cut repo rate by 25 basis points in the upcoming monetary policy

6 June 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 69.40 pair now at 69.41 against 69.2550 previous close.
• Pair to tip in 69.20-69.50 range today.
• Dollar/rupee opened higher on Thursday tracking a strong greenback after the release of an upbeat Fed Beige Book amid strong US economic data. Spot opened higher tracking the strong dollar. Dollar is strong after the upbeat US Fed Beige Book and strong US data. Dollar/rupee opened at Rs 69.41/$1 Thursday compared to its previous close of Rs 69.25/$1. The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 97.27 Thursday compared to 97.11 at close.

Global Currency

• The European Central Bank makes its monetary policy decision later on Thursday. The central bank will try to give the ailing euro zone a boost and may even set the stage for more action later this year as an escalating global trade war unravels the benefits of years of monetary stimulus. President Mario Draghi is expected to maintain guidance about the possibility of more stimulus.
• Economic growth likely to slow down in the March quarter 2019, the RBI may cut repo rate by 25 basis points in the upcoming monetary policy review. The Reserve Bank will announce its second bi-monthly monetary policy for the current fiscal on June 6. This will be the first policy meet of the central bank after the Lok Sabha elections 2019.

Global Markets

• Oil prices steadied on Thursday after falling to near 5-month lows in the previous session, but sentiment remained weak as markets are under pressure from rising U.S. supply and a stalling economy.
• Gold prices edged lower on Thursday, easing from the previous session's 15-week high as the dollar recovered from multi-week lows, although trade concerns and a possible U.S. rate cut offered support for safe-haven bullion.

Global Markets at one Glance

Share this post?