Brent crude oil rose despite the efforts of the US

The USDINR pair made a gap-up opening at 74.53 levels and traded in the range of 74.31-74.54 with a downside bias. The pair finally closed at 74.40 levels. The RBI set the reference rate at 74.4063 levels. The USDINR pair initially rose today because a rise in Brent crude oil prices dampened sentiment for the rupee thus extending support to the pair. A rise in crude oil prices raises the country's import bill, which subsequently weighs on the rupee. Brent crude oil rose despite the efforts of the US and other nations to release oil from their strategic reserves to cool off elevated prices, as the efforts fell short of some expectations.

The sentiment for the dollar also improved because the dollar index and the US treasury yields continued to rise, amid concerns over faster-than-expected rate hikes and tightening of monetary policy in the US following the nomination of Powell as chair of the Fed for a second term. However, later in the day, the USDINR pair erased the initial gain to touch the day's low of 74.31 and settled at 74.40 levels. Investors worldwide now await the minutes of the Fed meeting held on Nov 2-3, due later today, which may indicate the US central bank's stance on the pace of tapering of its bond purchases and hiking rates sooner than expected.

Japan's factory activity grew at the fastest pace in nearly four years in November, as output accelerated on loosening COVID-19 restrictions. The headline German IFO Business Climate Index worsened to 96.5 in November versus last month's 97.7 and the consensus estimates of 96.6.

Download The Full Daily Currency Highlights

Share: Analysis feed

This report has been prepared by IFA Global. IFA Global shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. IFA Global nor any of directors, employees, agents or representatives shall be held liable for any damages whether direct, indirect, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. No liability whatsoever is accepted for any loss arising (whether direct or consequential) from any use of the information contained in this report. This statement, prepared specifically at the addressee(s) request is for information contained in this statement. All market prices, service taxes and other levies are subject to change without notice. Also the value, income, appreciation, returns, yield of any of the securities or any other financial instruments mentioned in this statement are based on current market conditions and as per the last details available with us and subject to change. The levels and bases of, and reliefs from, taxation can change. The securities / units / other instruments mentioned in this report may or may not be live at the time of statement generation. Please note, however, that some data has been derived from sources that we believe to be reliable but is not guaranteed. Please review this information for accuracy as IFA Global cannot be responsible for omitted or misstated data. IFA Global is not liable for any delay in the receipt of this statement. This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject IFA Global to any registration or licensing requirements within such jurisdiction. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. IFA Global reserves the right to make modifications and alterations to this statement as may be required from time to time. However, IFA Global is under no obligation to update or keep the information current. Nevertheless, IFA Global is committed to providing independent and transparent information to its client and would be happy to provide any information in response to specific client queries. Neither IFA Global nor any of its directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. The information provided in these report remains, unless otherwise stated, the copyright of IFA Global. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright IFA Global and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.