The Indian rupee little changed at 70.80 pair now at 70.92 against 70.8850 previous close.
Pair to tip in 70.50-70.90 range today.
Dollar/rupee opened lower Thursday tracking subdued crude oil prices amid a weak dollar. Oil is significantly down and dollar is also weak. Also, the greenback turned weak against major counterparts after US Treasury 30-year yields approached record lows, on growing fears over a global economic downturn and bets the Federal Reserve would have to pick up its pace of interest rate cuts to counter recession risks. sentiments improved slightly after China reported an unexpected rise in its exports in July. China's dollar-denominated exports gained 3.3% from a year ago beating expectation of a 2% fall, custom data showed.
The People’s Bank of China set its daily reference rate at 7.0039 per dollar, the first time in a decade it was weaker than 7. Analysts and traders had projected a rate of 7.0156, according to the average of 21 forecasts compiled by Bloomberg in a survey. The yuan rose 0.3% to 7.0409 a dollar. Against a basket of peers, it weakened to its lowest level since at least 2015.
Interest rates futures suggested traders are building bets the Federal Reserve would cut rates three more times by year-end to avert a recession. the wake of such speculation, the 10-year U.S. Treasury yield US10YT sank to a three-year low of 1.595% on Wednesday.
Oil prices have clawed back some losses, but the sentiment remains overly bearish. The big question remains will the verbal intervention be enough to stem the tide, or will oil traders use this opportunity to increase short positions.
Gold prices rose again on Thursday after topping the $1,500 mark in the previous session, as central banks around the world slashed interest rates amidst fears of a global recession.
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