Indian Rupee Falls As China Scraps Trade Talks, Oil Prices Jump

24 September 2018 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 72.47 pair now at 72.39 against 72.19 previous close.
• Pair to tip in 72.30- 72.80 range today.
• The Indian rupee slipped against dollar in early trade, in line with Asian currencies after China scrapped planned trade talks with the U.S. before another round of tariffs take effect. Markets are worried of escalating trade tensions between the U.S. and China, while crude oil prices inching towards $80 per barrel mark is also hurting the rupee.

Global Currency

• The safe-haven Japanese yen briefly blipped higher on Monday as investors reacted to news China had cancelled trade talks with the United States just as the latest round of tariffs are set to take effect. The dollar was soon back at 112.60 yen, having been as low as 112.28 at one stage.
• The euro held at $1.1745 with some relief that German Chancellor Angela Merkel's ruling coalition resolved a dispute over the country's scandal-tainted spymaster on Sunday, ending a threat to the six-month-old government. The dollar was still faring better than the pound which on Friday suffered its sharpest one-day drop since June last year amid doubts about a Brexit deal.

Global Markets

• Oil prices rose more than 1% on Monday and climbed near two-months high as the Organization of Petroleum Exporting Countries (OPEC) issued a tepid response to U.S. President Donald Trump’s demand to lower oil prices. The jump in oil prices came after OPEC said over the weekend that the group would only raise output if customers requested it.
• Gold prices headed lower on Friday as a stronger dollar dented demand for the precious metal, but it was still on track for its first weekly climb in four as investors recentered their attention on the Federal Reserve.

Global Markets at one Glance

Share this post?