Indian Rupee appreciated by0.51 percent as dollar index weakened by 0.28 percent during the day mainly on account of easing concerns over trade war and domestic equity remaining positive yesterday. Meanwhile, RBI and Government break the ice during the nine hour long RBI board meeting yesterday after RBI agreed to work out loan restructuring scheme for SMEs for loan exposure for up to Rs. 25 crore.
Donald Trump discussed a host of issues including Syria, trade tensions with Saudi, China and North Korea during his meeting with world leaders in France. US CPI came in line with market expectations at 0.3 percent for Oct’18. Core retail sales data from US came in at 0.7 percent against market expectations of 0.5 percent for Oct’18. According to US Fed officials the central bank is nearing the end of its tightening cycle.
USDINR is expected to appreciate in today’s session.
* USDINR trading range for the day is 71.2-72.34.
* Rupee gained as U.S. Federal Reserve’s new-found concern on the global economy undermined the dollar.
* Rupee also seen supported on selling by foreign banks and exporters amid likely overseas fund inflows into local stocks.
* A RBI board meeting began with investors waiting to see if central bank and government policymakers could bridge differences over several key issues.
EURUSD appreciated by 0.29 percent yesterday while EURINR depreciated by 0.2 percent during the same time frame.
The EU released its September Current Account, which resulted at Euro 17.0B seasonally adjusted, vs. the previous Euro 24.3B Meanwhile; EU commission had asked Italy to revise their budget plans. However, Economy Minister Giovanni Tria said that the growth forecast contained in the budget is the result of technical evaluations and ‘non-negotiable,’ suggesting that the country is ready to face the EU Commission’s sanctions creating more rifts between the two parties.
EURINR is expected to move sideways in today’s session.
* EURINR trading range for the day is 81.47-82.53.
* Euro was bolstered by hopes that Italian Prime Minister Conte was looking to work with the EU over his government’s 2019 budget, which was rejected by Brussels.
* ECB’s monetary policy will stay easy even after it probably stops adding to its pile of bonds next month and it can adapt its policy normalization as needed
* Eurozone’s growth would continue at a gradual pace, but there was a chance that core inflation may be slow in picking up in future.
* GBPINR trading range for the day is 91.73-92.87.
* GBP traded in range after a leading eurosceptic minister pledged support for Britain’s embattled premier Theresa May, who struck a defiant tone.
* UK PM May : I recognize and share concerns about the backstop. The decision to go forward was not an easy one but it was the right one
* UK PM May says people wanted the government to get on with it and get a deal that protects people of the UK
* JPYINR trading range for the day is 63.16-64.22.
* JPY gained as the dollar eased after Federal Reserve officials expressed caution over the global growth outlook
* Deputy Prime Minister Taro Aso: France has done well in terms of its demographics policy
* Deputy Prime Minister Taro Aso: Exports probably were affected by trade issues, but corporate profits remain very high.
I AM LAST