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USD/INR opens up on risk-off sentiment, soft Chinese Yuan

7 August 2019 / Morning Brief

Indian Rupee

  • The Indian rupee little changed at 70.96 pair now at 70.92 against 70.81 previous close.
  • Pair to tip in 70.65-71.00 range today.
  • Dollar/rupee opened higher Wednesday on risk-off sentiments weighing on Asian currencies amid still soft Chinese Yuan. Asian currencies are all down and Chinese Yuan has weakened. The Chinese Yuan weakened after China's central bank set its daily currency reference rate only marginally stronger than 7 a dollar. The PBOC is attempting to seek balance between allowing more flexibility in the yuan amid an escalation of the trade war. The dollar remained subdued against other major counterparts as markets remain nervous.

Global Currency

  • The dollar fell against the yen and the yuan weakened, in a sign investors remain wary that China's currency policy has become a new flashpoint in its trade war with the United States. The world's two-largest economies are locked in a bitter trade dispute that rapidly escalated late last week when U.S. President Donald Trump said he would impose more tariffs on Chinese goods. China's currency also opened weaker against the dollar in onshore trade.
  • U.S. President Donald Trump dismissed fears of a protracted trade war with China on Tuesday, but Beijing has sent strong warnings that labelling it a currency manipulator would have severe consequences for the global financial order.

Global Markets

  • Oil prices steadied on Wednesday after falling at the start of the session, with the potential for damage to the global economy and fuel demand from the intensifying Sino-U.S. trade dispute continuing to cast a shadow over the market.
  • Gold prices edged up on Wednesday as the ongoing trade tensions between the United States and China continued to boost the appeal of safe-haven assets.

Global Markets at one Glance

Markets Today In INR % Change
USD/INR 70.905 70.9175 0.01
EUR/USD 1.12126 79.50 0.07
GBP/USD 1.21602 86.22 -0.05
USD/JPY 106.11 0.67 0.29
SEK/INR 9.5893 7.3942 -0.0177
DKK/INR 6.3294 11.2025 0.0325
AUD/USD 1.4924 47.50 -0.17
1M 2.34763 -0.41543  
3M 2.50450 -0.35929  
6M 2.52088 -0.31129  
1Y 2.60925 -0.22029  
Index Today % Change
NIFTY 10932.80 -0.14
SENSEX 36952.60 -0.07
BANK NIFTY 27926.85 +1.00
SGX NIFTY 10956.00 -0.06
NIKKEI 20463.50 -0.59
HANG SENG 25883.00 -0.36
SHANGHAI 2777.36 -0.01
ASX200 6521.80 +0.65
DOW JONES 26029.50 +1.21
S&P500 # 2881.77 +1.30
NASDAQ # 7833.27 +1.39
Key Events of the Day
Date Time Currency Event Forecast Previous
07-Aug-2019 11.45 INR Interest Rate Decision 5.50% 5.75%
07-Aug-2019 11.45 INR Reverse REPO Rate 5.25% 5.50%
07-Aug-2019 20.00 USD Crude Oil Inventories -2.845M -8.496M

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