USD/INR: The Indian rupee rose against the dollar

Abhishek Goenka IFA Global

The USDINR pair made a gap-down opening at 74.80 levels and traded in the range of 74.71-74.93 with a sideways bias. The pair finally closed at 74.78 levels. The RBI set the reference rate at 74.8607. The Indian rupee rose against the dollar today because Brent crude oil prices retreated over 3% after touching a three-year high on Wednesday, lifting investor sentiment for the Indian rupee. A sharp rise in domestic equity indices also supported the Indian rupee.

Asian equities rose in line with US equity indices after risk sentiment improved due to optimism over a deal on the US debt ceiling. US Senate Minority Leader Mitch McConnell indicated he would give a short-term debt limit extension to Republicans, which would ease some pressure on Congress to prevent a default according to reports. Investors worldwide await the release of key non-farm payrolls data in the US, due on Friday, which could provide additional clues on the timing of the US Federal Reserve's next moves on tapering monthly asset purchases. The 10-year G-Sec benchmark 06.10 GS 2031 closed the day at 6.267% levels.

On an annualized basis, a premium on the one-year, exact period dollar/rupee contract rose to 4.47% as against 4.44% of the previous close. Industrial Production in Germany showed a bigger-than-expected drop in August, suggesting that the recovery in the manufacturing sector losing momentum. Eurozone’s economic powerhouse’s industrial output drops sharply by -4% MoM, vs. a -0.4% drop expected and 1% last.

Download The Full Daily Currency Highlights

Author

Abhishek Goenka

IFA Global

Mr. Abhishek Goenka is the Founder and CEO of IFA Global. He pilots the IFA Global strategic direction with a focus on relentlessly improving the existing offerings while constantly searching for the next generation of business excellence.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.