USD/INR opens up on weak risk-appetite

10 August 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 71.19 pair now at 71.08 against 70.80 previous close.
• Pair to tip in 71.00-71.25 range today.
• Dollar/rupee opened higher Tuesday on weakening risk appetite and turbulent global markets tracking the unrest in Hong Kong and sharp fall in Argentina's peso. Risk-aversion remains heightened in the market tracking political unrest in Hong Kong and Argentina. Dollar demand remains high in spot. Reports showed, huge numbers of protesters are seen gathered in Hong Kong international airport in protest of Police Brutally and the extradition bill. Protests were sparked in Hong Kong in June by a proposed bill that would allow extraditions to mainland China.

Global Currency

• The yen stood near a seven-month high against the dollar on Tuesday as unrest in Hong Kong and gyrations in Argentina's markets heightened investor risk aversion and fanned demand for the safe-haven Japanese currency. The yen has been on a solid footing this month, supported by factors such as U.S.-China trade tensions and the prospect of further monetary easing by the U.S. Federal Reserve.
• The drop in the yield is probably a result of the rally in U.S. government bonds and the disappointing credit data. The room for the decline is limited if China doesn’t lower rates for its medium-term lending facility.

Global Markets

• Oil prices slipped on Tuesday offsetting narrow gains in the previous session as sluggish demand forecasts countered expectations that major producers would prop up oil price by limiting crude oil output.
• Gold prices scaled their highest in more than six years on Tuesday, as concerns around protests in Hong Kong and an Argentine currency crash amid fears of global economic slowdown, prompted investors to move away from riskier assets.

Global Markets at one Glance

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