India Rupee Slips On Upbeat U.S. Data, Trade Talks In Focus

6 March 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 70.59 pair now at 70.53 against 70.4850 previous close.
• Pair to tip in 70.35-70.70 range today.
• The Indian rupee fell against the dollar in early trade, as better-thanexpected U.S. services and housing data lifted demand for the dollar. The broad strength in dollar across currencies has spilled over to the rupee as well. The risk-off sentiments amid caution due to little progress in the U.S.-China trade negotiations also weighed on sentiments. However, the drop in crude oil prices and likely dollar inflows in local equity markets is expected to keep losses limited. The dollar index is headed for the sixth straight session of gains.

Global Currency

• The dollar held gains against its peers on Wednesday, buoyed by better-than-expected data, while the Aussie took a knock after Australia's economic growth slowed last quarter. On Tuesday, the U.S. dollar rose as unexpectedly strong data on U.S. services industries and new home sales helped sooth some fears about the state of the world's top economy.
• The euro was down a shade at $1.1298 EUR= , hovering near twoweek lows versus the greenback amid bets that the European Central Bank meeting on Thursday would indicate a delay in raising rates until next year and the ECB will soon re-launch long-term bank loans to fight an economic slowdown.

Global Markets

• Oil prices fell nearly 1 percent on Wednesday as bullish output forecasts by two big U.S. producers and a build in U.S. crude stockpiles outweighed ongoing OPEC-led efforts to rein in crude production.
• Gold prices steadied on Wednesday, after recovering from a more than five-week low in the previous session, lifted by a pause in global equities rally, while a firm dollar curbed further gains. U.S. gold futures GCv1 were up about 0.3 percent at $1,287.90 per ounce.

Global Markets at one Glance

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