USD/INR opens down on lower crude oil prices, subdued dlr

9 August 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 70.54 pair now at 70.54 against 70.69 previous close.
• Pair to tip in 70.35-70.60 range today.
• Dollar/rupee opened lower Friday tracking a stable Chinese yuan, an overall subdued greenback and as a drop in crude oil prices weighed on local dollar demand as well. Concerns of global economic slowdown and the on-going Sino-US trade war weigh on crude oil demand outlook. The greenback also remained subdued against major counterparts on fear that the trade war jitters may lead to a significant downturn in US economic growth and may force the Federal Reserve to raise the pace of rate cuts in coming months. Oil is trading down, dollar remains subdued and Chinese yuan is relatively stable.

Global Currency

• The yen rose on Friday on renewed concerns about the U.S.-China trade dispute after a report that the White House is delaying a decision on allowing U.S. companies to do business with Chinas Technologies. The offshore yuan was stable versus the dollar in early trade after an alarming early week slide but it will be closely watched as traders eye Beijings response to escalating trade tensions.
• There are growing concerns the rapid deterioration in U.S.-China relations will place additional strain on an already fragile global economy. Sterling traded at $1.2145 GBP little changed on the day but on course for a fourth consecutive week of declines.

Global Markets

• Oil prices fell on Friday amid fears over demand as the U.S-China trade row casts its shadow over markets, although prices got some support from expectations of more OPEC production cuts.
• Gold prices rose on Friday, holding above the key $1,500 per ounce pivot, as fresh concerns about the U.S.-China trade dispute and worries over global economic slowdown lifted demand for the safe-haven metal.

Global Markets at one Glance

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