Monday, 1 June 2020
- Asia stocks prove resilient to U.S. riots as S&P futures bounce
- Dollar slips as investors focus on recovery outlook
- Oil prices slip as wary traders eye upcoming OPEC+ meeting
Our View on USD / INR
In our view India Rupee Likely Higher On Phased Lifting Of Lockdown and Chinese Yuan Rebound. The Indian rupee is expected to trade higher against the dollar after the government allowed lifting lockdown restrictions in a phased manner while maintaining curbs in areas worst affected by the coronavirus.
The rupee will likely be quoted at around 75.45-75.55 in early trades compared with 75.62 at 2.00 p.m. on Friday. It is likely to get support around 75.40 levels and any dip towards 75.20 should be bought. It is likely to have resistance near 75.70 levels and any spike towards 75.90 should be sold in intraday activity.
World Markets at a glance
Asian shares pushed to three-month highs on Monday as progress on opening up economies helped offset jitters over riots in U.S. cities and unease over Washington’s power struggle with Beijing.
E-Mini futures for the S&P 500 recovered early losses to be up 0.1%, having been down 1% in early trade, while safe-haven gold pared an early rise to be up 0.4% at $1,733 an ounce. Hong Kong managed to rally 2.8%, while Chinese blue chips put on 1.4%. MSCI’s broadest index of Asia-Pacific shares outside Japan 1.6% to its highest since early March. Japan’s Nikkei added 1% to also reach a three-month peak.
The dollar slipped on Monday as investors looked past unrest in the United States to the global economic recovery from the coronavirus and hoped for an easing in Sino-U.S. tensions.
The risk-sensitive Australian dollar shrugged off early pressure and gained 0.4% to hit a three-month high of $0.6703. The euro was firm and sterling tested a three-week high. The kiwi and the oil sensitive Canadian dollar and Norwegian krone all rose about 0.3%.
Oil prices fell nearly 1% on Monday as traders hedged bets with the Organisation of the Petroleum Exporting Countries (OPEC) considering meeting as soon as this week to discuss whether to extend record production cuts beyond end-June.
Brent crude fell 34 cents to $37.50 a barrel, in the first day of trading in the contract with August as the front month. West Texas Intermediate (WTI) crude futures for July delivery were at $35.17 a barrel, down 32 cents.
Source : Reuters