Forex Analysis Report

The Indian rupee opened weaker against the dollar at 70.98/99 as mixed remarks by China and the U.S. fueled doubts over trade-truce prospects while the dollar index weakened ahead of a key data release.

SPOT/INR : The Indian rupee ended weaker at 70.92/93 against dollar from its previous close of 70.88/89, as greenback purchases by state-run banks offset the impact of foreign fund inflows into shares and debt.

FORWARD PREMIUM : Forward dollar/rupee premium are likely to take cues from the spot.

GLOBAL DEVELOPMENTS :
Asian shares reversed early losses on Friday as an unexpected bounce in Chinese manufacturing activity offset some negativity cast by a Bloomberg news report that raised doubts over whether the United States and China can reach a long-term trade deal. Factory activity in China expanded at its fastest pace in more than two years in October as export orders and production rose, a private business survey showed on Friday. The expansion, which beat expectations and contrasted with the dour results of an official survey Thursday, helped to boost Chinese blue chips, which rose 0.7%. Hong Kong's Hang Seng added 0.3% and Seoul's Kospi rose 0.42%. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to add 0.16%, having hit three-month highs on Thursday. The index's performance reflected a results season that has shown companies to be more resilient than expected, said Jim McCafferty, head of Equity Research, Asia exJapan at Nomura. Earlier on Friday, losses had mirrored falls in global stock markets, as MSCI's gauge of equity performance in 47 countries fell from 20-month highs after a report that cast doubt on the likelihood of a U.S.-China trade deal. On Wall Street, the Dow Jones Industrial Average fell 0.52%, the S&P 500 lost 0.30% and the Nasdaq Composite dropped 0.14%. Efforts by Washington and Beijing to end their bruising nearly 16-month trade war appeared on track as U.S. President Donald Trump said on Thursday said that the two sides would soon announce a new venue for the signing of a "Phase One" trade deal after Chile cancelled a planned summit set for mid-November. The yield on benchmark 10-year Treasury notes was higher at 1.6962% compared with its U.S. close of 1.691% on Thursday. The two-year yield, sensitive to market expectations of Federal Reserve policy, was at 1.5319%, up from a U.S. close of 1.526%. The Fed cut interest rates for a third time this year on Wednesday to help sustain U.S. growth, but signalled there would be no further reductions unless the economy takes a turn for the worse. In the currency market, the dollar was a touch stronger than the safe-haven yen, adding 0.01% to 108.03.The euro was 0.14% higher on the day at $1.1166, while the dollar index, which tracks the greenback against a basket of six major rivals, was down 0.14% at 97.216 on the day. U.S. crude ticked up 0.33% to $54.36 a barrel and Brent crude rose 0.13% to $59.70 per barrel. Spot gold eased 0.15% to $1,510.94 per ounce.

POSITIVE FACTORS FOR RUPEE :

FACTORS AGAINST RUPEE :

Note : This information is given only for guidance purpose without any obligation on the part of TMB or any of its officials. Any person dealing on the basis of the said information does so at his / her own risks and no obligation arises to TMB or any of its officials. All such trading involves risks.

Exchange Rates Information last updated in part or full on Friday, November 01, 2019 - 11:03 am (IST) for ready transactions. All quotations are per unit of Foreign Currency except Japanese Yen, which is quoted for 100 Units