USD/INR Drops Below 70 Amid Portfolio Inflows; Downside Limited
7 March 2019 / Morning Brief
Indian Rupee
- The Indian rupee little changed at 70.08 pair now at 70.05 against 70.28 previous close.
- Pair to tip in 69.85-70.20 range today.
- USD/INR opens lower amid dollar offers by foreign banks, likely for custodial clients. US February private payroll job additions slightly below expectations. Non-farm payroll data due tomorrow. Foreign banks have been instrumental in the pair falling from near 71.50 to the current levels over the last ten days. Portfolio flows in local bond and equity markets have gotten off to a good start this month, The momentum is clearly in favor of the rupee. But looking at how oversold the pair is in the immediate term.
Global Currency
- The dollar was down 0.1 percent at 111.65 yen, but still not far off a recent peak of 112.135 hit on Tuesday, its strongest since Dec. 20. The dollar index has gained 1.1 percent over the last six trading sessions after hitting its lowest level since early February on Thursday last week. Traders have remained bullish on the dollar in view of the continuing uncertainties over the United Kingdom's exit from the European Union and U.S.-China trade negotiations.
- The euro trod water at $1.1312 EUR= , about 1.0 percent below a one-month high hit on Thursday last week. Major currencies kept to tight ranges on Thursday as traders focused their immediate attention on the European Central Bank's (ECB) policy review, while the Australian and Canadian dollar languished near two-month lows.
Global Markets
- Oil edged up on Thursday amid ongoing OPEC-led supply cuts and U.S. sanctions against exporters Venezuela and Iran, although prices were prevented from rising further by record U.S. crude output and rising commercial fuel inventories.
- Gold prices steadied on Thursday as lacklustre appetite for riskier assets offered some support to the safe-haven metal, while firm dollar limited gains ahead of ECB policy meeting due later in the day.
Global Markets at one Glance
| Markets Today | In INR | % Change | |
| USD/INR | 70.09 | 70.095 | 0.03 |
| EUR/USD | 1.13047 | 79.23 | -0.08 |
| GBP/USD | 1.318 | 92.38 | 0.12 |
| USD/JPY | 111.696 | 0.63 | 0.07 |
| SEK/INR | 9.2975 | 7.5386 | 0.0005 |
| DKK/INR | 6.2566 | 11.2025 | 0.0325 |
| AUD/USD | 1.419 | 49.37 | -0.11 |
| TIME | USD LIBOR | EURO LIBOR | |
| 1M | 2.48088 | -0.41171 | |
| 3M | 2.60663 | -0.33643 | |
| 6M | 2.68475 | -0.29543 | 1Y | 2.88363 | -0.162 |
| Index | Today | % Change |
| NIFTY | 11054.8 | 0.02 |
| SENSEX | 36694.05 | 0.16 |
| BANK NIFTY | 27607.35 | -0.07 |
| SGX NIFTY | 99347.5 | 0.33 |
| NIKKEI | 21596.81 | -0.60 |
| HANG SENG | 28821.02 | -0.75 |
| SHANGHAI | 3094.6253 | -0.24 |
| ASX200 | 6263.9 | 0.29 |
| DOW JONES | 25673.46 | -0.52 |
| S&P500 # | 2771.45 | -0.65 |
| NASDAQ # | 7112.468 | 0 |
| Key Events of the Day | |||||
| Date | Time | Currency | Event | Forecast | Previous |
| 07/03/2019 | 18.15 | EUR | Deposit Facility Rate | -0.40% | -0.40% |
| 07/03/2019 | 18.15 | EUR | ECB Marginal Lending Facility) | 0.25% | 0.25% |
| 07/03/2019 | 18.15 | EUR | ECB Interest Rate Decision (Mar) | 0.00% | 0.00% |
