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USD/INR opens down on improved risk appetite, easing US-China trade tension

12 September 2019 / Morning Brief

Indian Rupee

  • The Indian rupee little changed at 71.42 pair now at 71.33 against 71.65 previous close.
  • Pair to tip in 71.18-71.50 range today.
  • Dollar/rupee opened down Thursday on improved risk appetite following signs of easing US-China trade tension. Risk appetite surged on hopes of easing trade worries between US and China, supporting local currency demand. China exempting a range of US products from retaliatory tariffs also provided hope of progress on trade talks next month. Market remains optimistic on speculation of a rate cut and additional stimulus from the European Central Bank, whose policy is due later in the day.

Global Currency

  • Olive branches between Washington and Beijing on trade pushed the dollar to a six-week high against the safe-haven yen on Thursday and also supported the risk-sensitive currencies of China. The world's two largest economies granted concessions in their heated tariff dispute on Wednesday ahead of planned talks. China exempted a basket of U.S. goods from its own tariffs while U.S. President Trump said he would delay a scheduled tariff hike by two-weeks in October.
  • Sterling also dipped after a Scottish court ruled on Wednesday that PM Boris Johnsons suspension of the British Parliament was unlawful prompting immediate calls for lawmakers to return to work as the government and Parliament battle over the future of Brexit. British pound GBP fell as much as 0.4% to $1.2313 overnight.

Global Markets

  • Gold prices fell on Thursday as equities gained on improving risk sentiment buoyed by signs of gradual de-escalation in U.S.-China trade tensions, while investors eyed European Central Bank's meeting for cues on monetary policy easing.
  • Oil traders attending major industry gatherings in Singapore and Abu Dhabi this week have flagged deteriorating demand growth in key market such as China-India for downbeat expectations on crude oil.

Global Markets at one Glance

Markets Today In INR % Change
USD/INR 71.375 71.3875 -0.24
EUR/USD 1.10134 78.60 -0.26
GBP/USD 1.2327 87.98 -0.24
USD/JPY 108.063 0.66 -0.56
SEK/INR 9.6717 7.3798 -0.0168
DKK/INR 6.3713 11.2025 0.0325
AUD/USD 1.4529 49.12 -0.19
1M 2.34763 -0.41543  
3M 2.50450 -0.35929  
6M 2.52088 -0.31129  
1Y 2.60925 -0.22029  
Index Today % Change
NIFTY 11074.70 0.35
SENSEX 37406.20 0.36
BANK NIFTY 28026.05 0.90
SGX NIFTY 11091.00 0.49
NIKKEI 21811.00 0.99
HANG SENG 27110.00 -0.18
SHANGHAI 3014.80 0.20
ASX200 6648.10 0.15
DOW JONES 27137.00 0.85
S&P500 # 3000.91 0.72
NASDAQ # 8169.68 1.06
Key Events of the Day
Date Time Currency Event Forecast Previous
12/09/2019 17.15 EUR Deposit Facility Rate (Sep) -0.50% -0.40%
12/09/2019 17.15 EUR ECB Marginal Lending Facility 0.25%
12/09/2019 17.15 EUR ECB Interest Rate Decision (Sep) 0.00% 0.00%
12/09/2019 18.00 USD Core CPI (MoM) (Aug) 0.2% 0.3%

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