Indian Rupee Lower Tracking Weak Yuan, Subdued Risk Appetite
26 October 2018 / Morning Brief
The Indian rupee little changed at 73.4250 pair now at 73.38 against 73.2750 previous close.
Pair to tip in 73.20- 73.60 range today.
The Indian rupee fell against the dollar in early trade, in line with most Asian currencies as the Chinese yuan weakened to near two-year low amid waning appetite for risk assets. Chinese offshore yuan is at a striking distance from falling to a crucial level of 7 against the dollar, dragging most Asian currencies, while risk-off sentiments continue to prevail in regional markets.
The dollar traded in tight ranges against most of its peers on Friday as investor appetite for riskier assets remained shaky while the euro stayed near two-month lows after the European Central Bank failed to convince markets that rates would rise. U.S. stocks climbed on Thursday after the massive sell-off of the previous session, though the rebound in stocks failed to meaningfully sustain into the Asian day, which lent support to safe haven currencies.
The euro traded flat at $1.1375 on Friday, having hit a two-month low of 1.1353 in the previous session, after ECB President Mario Draghi failed to convince traders that the bank could pursue monetary tightening after next summer.
Oil prices fell on Friday and were heading for a third weekly loss, pulled down as Saudi Arabia's OPEC governor said the market may become oversupplied soon and after a slump in global equities clouded the outlook for demand.
Gold prices fell on Thursday on a strong dollar and a rebound of stocks following a multi-day sell-off globally, taking steam out of bullion's momentum.
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