Indian Rupee appreciated by 0.43 percent as dollar index remained flat during the day on account of easing trade war worries and rise in domestic equity markets. Meanwhile, CPI from India came in 2.33 percent for Nov’18 against market expectations of 2.8 percent. IIP for Oct’18 came in at 8.1 percent against market expectations of 5.7 percent.
The Asian giant seems willing to make concessions to the US by replacing its industrial policy. The so-called Made in China 2025, a plan to make China a leader in high-tech industries, is being revised to be more open to participation by foreign companies. Also, in the recent dialogue between US and China Donald Trump was happy with the process of trade talks and said big news is likely to be awaited by the market in the coming days. China announced it´s considering reducing tariffs on American cars from 40% to 15%. US PPI came in at 0.1 percent for Nov ’18 against market expectations of 0 percent. US CPI came in line with market expectation at 0 percent for Nov’18.
USDINR is expected to move sideways in today’s session.
* USDINR trading range for the day is 71.43-72.19.
* Rupee weakened slightly, in response to a sharp rise in global crude oil prices which threatens to aggravate India’s current account deficit.
* RBI sold net $7.2 billion in spot market in October
*RBI’s net outstanding forward dollar sale end-October stands at $2.89 billion
EURUSD depreciated by 0.06 percent yesterday while EURINR appreciated by 0.39 percent during the same time frame. Italian PM Conte presented the budget in front of the European Union with a target deficit of 2.04 percent. Also, ECB in its latest monetary policy meeting yesterday will end the QE program by the end of Dec’18. The ECB also said it would continue to reinvest cash from maturing bonds for an extended period of time.
EURINR is expected to appreciate in today’s session.
* EURINR trading range for the day is 81.41-82.07.
* Euro traded in range after news that Italy lowered its deficit target for next year and expected the European Commission to accept its new 2019 budget proposal.
* Eurozone’s industrial production grew in October after a slump in the previous month, suggesting that economic growth may gain some steam.
* German investor confidence rose strongly in December, defying expectations for a modest weakening.
GBP appreciated against the US dollar by 0.21 percent yesterday while GBPINR appreciated by 0.21 percent. UK PM May’s leadership came again under scrutiny after she decided to pull out the Brexit deal from the Parliament and rush back to Brussels, trying to get a deal that has chances to pass the Commons. Meanwhile, sterling got hammered on news article that Mrs May had to face no confidence vote from Tory MP’s. Later some MP’s voiced their support in for the PM.
GBPINR is expected to appreciate in today’s session.
* GBPINR trading range for the day is 90.16-91.52.
* GBP remained supported after British Prime Minister Theresa May survived a no-confidence vote.
* No immediate new assurances for UK in EU Brexit draft
* Donald Tusk of the European Council comments EU27 wants to help Brexit summit after “long and frank discussion” with UK PM Theresa May
* JPYINR trading range for the day is 63.08-63.76.
* JPY dropped as the dollar gained as demand for riskier assets increased on growing signs of a thaw in Sino-U.S. trade relations.
* BOJ Governor Kuroda: Forward guidance meant no early discussion of exit
* BOJ Governor Kuroda: Fed’s rate policy itself won’t require BOJ to respond.AFTER POST CONTENT
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