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

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.

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.

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.

Research