INDIAN RUPEES – INR
Indian Rupee depreciated by 0.04 percent despite dollar index strengthened by 0.11 percent during the day as investors were cautious about the RBI meeting which was held yesterday. Meanwhile, in the monetary policy meeting held by RBI yesterday the PMC decided to keep the interest rates unchanged at 6.25 percent and maintained its stance of calibrated tightening.
US Central Bank Chief, Powell, shocked investors with his call of rates being “just below” neutral. Donald Trump and Xi Jinping have reached a truce in the US-China trade war for a period of 90 days. US won’t be imposing additional tariffs on China. The current rate of 10 percent tariffs would remain on Chinese goods. Meanwhile, Donald Trump later tweeted that he will not hesitate to increase the tariffs on China post the negotiation period of if he feels the deal is not satisfactory. Non-manufacturing PMI from US came in 59.3 against market expectations of 57.5 for Nov’18.
USDINR is expected to move sideways in today’s session.
Euro – EUR
EURUSD remained flat yesterday while EURINR depreciated by 0.2 percent during the same time frame. EU commission had rejected Italian budget and asked them to revise their spending plans. Italy is ready to revise its budget deficit by 0.2 percent down to 2.2 percent which is still above EU’s target of 2 percent. Italy’s PM assured that the revised budget will be ready soon. Meanwhile, manufacturing PMI from Euro zone came in at 51.8 against market expectations of 51.3 for Nov’18.
EURINR is expected to move sideways in today’s session
Pound – GBP
GBP appreciated against the US dollar by 0.1 percent yesterday while GBPINR depreciated by 0.14 percent. BOE published its report on Brexit, saying that in the worst case scenario, Brexit will lead to 8% fall in GDP short-term while the Pound could depreciate as much as 25 percent. Meanwhile, manufacturing PMI from UK came in at 53.1 for Nov’18 against market expectations of 51.6. Construction PMI from UK came in at 53.4 for Nov’18 against market expectation of 52.5. Earlier during the day pound bounced on the news that UK could cancel the Brexit unilaterally. However, later on PM May’s spokesperson said that Government does not want to cancel Brexit.
GBPINR is expected to appreciate in today’s session.
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