USD/INR opens flat as improved risk appetite offsets strong dollar

The Indian rupee little changed at 71.85 pair now at 71.71 against 71.84 previous close.
Pair to tip in 71.60-71.90 range today.
Dollar/rupee opened flat Friday as improved risk appetite on trade war optimisn offset the impact of strong dollar amid upbeat US data. The dollar gained against major counterparts on upbeat ADP employment change, factory orders and ISM non-manufacturing PMI data. The employment change in US was 195K in August, according to ADP, when the market consensus was for 149k. The factory orders in July rose by 1.4% when the market consensus was for 1% rise.

Encouraging U.S. economic data gave the dollar an edge over its peers on Friday, arresting a recent flight from the greenback while also supporting Asian currencies as investors toned down recent gloom over the global economy. U.S. service sector activity accelerated in August and private employers boosted hiring beyond expectations. contributed to a broad risk-on shift in money, bond and stock markets stoked by news that China-U.S. trade talks would resume next month, and supported the dollar.
Traders now await the government's monthly payrolls report due at 1230 GMT on Friday for the next snapshot on the labour market's health. Investors are now hoping they can take this week's positivity over the finishing line, so fingers crossed the August U.S. payroll report...doesn't throw a damp towel on the proceedings.

Oil is on track for a second straight weekly gain, buoyed by a big drawdown in U.S. crude stockpiles and reports that the U.S. and China would hold trade negotiations next month.
Gold prices inched lower on Friday, after dropping more than 2% in the previous session, as investors were driven to riskier assets encouraged by stronger U.S. economic data and hopes of a thaw in the U.S.-China trade tensions.

Research