USD/INR opens up on worsening risk-appetite, likely FII outflows from local stocks

The Indian rupee little changed at 69.25 pair now at 69.28 against 69.05 previous close.
Pair to tip in 69.10-69.35 range today.
Dollar/rupee opened up Friday tracking worsening risk-appetite supporting safe haven dollar demand after US President Donald Trump threatened to put 10% tariff on the remaining $300 billion worth of Chinese goods, effective from September 1. Likely overseas outflows from local stocks after thye announcement further supported dollar demand. FII outflows from local equities and poor risk-appetite after Trump's announcement led gains in dollar/rupee. The new set of tariff comes in addition to the existing 25% tariffs on $250 billion of imports.

Britain plans to create up to 10 freeports to boost trade and manufacturing by cutting cost and bureaucracy after it leaves the European Union, the government said on Thursday. Prime Minister Boris Johnson, who took office last month with a pledge to deliver Brexit by the end of October "no ifs or buts", promoted the idea of freeports during his campaign.
Trump's announcement, which came a day after U.S. and Chinese negotiators concluded a meeting in Shanghai without significant signs of progress, marks an end to a truce in the trade war struck in June and could further disrupt global supply chains.

Oil prices rose more than $1 on Friday, rebounding from their biggest falls in years after U.S. President Donald Trump imposed more tariffs on Chinese imports, intensifying the trade war between the world's two biggest economies and crude consumers.
Gold prices fell on Friday, consolidating from a more than 2% surge in the previous session after U.S. President Donald Trump broke a trade truce with China, but the metal was headed for a third weekly.

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