USD/INR trades firm after opening flat on caution over US-China trade deal

15 October 2019 / Morning Brief

Indian Rupee

• The Indian rupee opened little changed at 71.2400 today, pair now at 71.2575 against 71.2300 previous close.
• Pair to tip in 71.05-71.35 range today.
• Dollar/rupee traded firm after opening little changed Tuesday as risk aversion gained due to lack of progress on US-China trade deal front. Globally risk sentiments are mixed on hope that Britain may avoid a messy exit from European Union amid uncertainties over recent US-China trade negotiations. There is also doubts over the feasibility about phase one US-China trade deal, keeping demand for safe haven assets stronger.

Global Currency

• The dollar hovered below 2-1/2-month highs against the yen on Tuesday, failing to extend recent gains as optimism over trade negotiations between the world's two largest economies and for an orderly British exit from the European Union started to fade, Although markets initially welcomed the "Phase 1" trade deal between the United States and China that President Donald Trump outlined last week, a lack of details kept many investors cautious.
• A Bloomberg report on Monday, citing said China wants more talks as soon as the end of October to hammer out the details of Trump's phase 1 deal before Chinese President Xi Jinping agrees to sign it.

Global Markets

• Oil prices dropped again on Tuesday after falling heavily in the previous session, as weak Chinese economic data for September added to lingering concerns about the feasibility of the U.S.-China trade deal announced by President Trump late last week.
• Gold prices held steady below the $1,500 per ounce level on Tuesday as markets braced for talks between Britain and the European Union that will determine how smooth Britain's departure will be from the trading bloc.

Global Markets at one Glance

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