India Rupee Traded Higher After Dollar Index Falls To Near 3-Month Low

India Rupee Traded Higher After Dollar Index Falls To Near 3-Month Low

03 Jun 2020 10:08 AM
 

USD/INR

India rupee opened higher at 75.03 against its last close of 75.3625. The Indian rupee traded higher against the U.S. currency after upbeat risk appetite dragged the dollar index to its lowest level in about three months. The S&P 500 Index is now up about 40% from the lows witnessed in late-March, prompting the dollar index to retrace from near 103. The dollar gauge was last down 0.1% at 97.52, poised for the seventh straight daily decline. Benchmark Brent crude oil contract up 1.5% at $40.15 per barrel, near its highest level since Mar. 11.

EUR/USD

It’s a busy day ahead on the Eurozone economic calendar. Italy and Spain’s Service sector and Composite PMIs for May are due out later this morning. While Italy’s Manufacturing PMI may have hit a 3-month high, we will be looking for service sector activity to drive the recovery. Today’s stats will be key, though one does wonder whether any weak numbers will test the current sentiment…Finalized services PMIs and Composite PMIs are also due out of France, Germany, and the Eurozone. Later in the day, economic data from the U.S could have the final say. The markets preferred ISM Non-Manufacturing PMI for May is due out along with May’s ADP nonfarm employment change figures. Euro was last seen at $1.1202 against the Dollar.

GBP/USD

GBP/USD benefits from the Brexit, coronavirus headlines from the UK to rise to 1.2581. Not only the EU readiness to extend the Brexit by a period of two-year, UK PM Boris Johnson’s taking charge of the pandemic handling also propels the British Pound off-late. Key data releases for the day include PMI numbers. At the time of writing the Pound was last seen trading at $1.2586.

USD/JPY

USD/JPY extends its corrective slide from two-month highs of 108.85, as the sellers return on relentless US dollar selling seen across the board. The risk-on rally in the Asian markets continues to weigh on the haven greenback. Over the last hour, the rates have stabilized amid a tepid bounce attempted by the greenback across its main competitors, with the US dollar index back above 97.50 from fresh three-month lows of 97.41. Moreover, the yen picked up a small bid on the reports that the Bank of Japan (BOJ) is considering doubling the financial aid for the small business hit by the coronavirus pandemic, collaborating with the USD/JPY drop. The Yen was last seen at 108.60 against the Dollar.

 Important data releases today

Time

CCY

Event

Forecast

Previous

13:25

EUR

German Unemployment Change (May)

200K

373K

14:00

GBP

Composite PMI (May)

28.9

13.8

14:00

GBP

Services PMI (May)

28.0

13.4

17:45

USD

ADP Nonfarm Employment Change (May)

-9,000K

-20,236K

19:30

USD

ISM Non-Manufacturing PMI (May)

44.0

41.8

20:00

USD

Crude Oil Inventories

3.038M

7.928M