Indian Rupee At 1-Week Low On Renewed US-China Trade Tension

30 October 2018 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 73.55 pair now at 73.61 against 73.45 previous close.
• Pair to tip in 73.30- 73.75 range today.
• The Indian rupee fell to a one-week low against dollar in early trade, as appetite for risk assets waned amid reports that the U.S. may impose fresh tariffs on China, renewing trade war fears. Subdued risk appetite in the global markets led to weakness in the rupee, while month-end dollar demand from importers will further add pressure on the local unit.

Global Currency

• The dollar edged higher against the euro on Monday, close to a 10-week high hit last week, on news German Chancellor Angela Merkel would not seek re-election as head of her CDU party. The dollar added to recent gains against other major currencies, supported by robust U.S. consumer spending data on Monday.
• The euro was 0.14 percent lower against the dollar. Merkel has loomed large on the European stage since 2005, helping guide the EU through the euro zone crisis and opening Germany's doors to migrants fleeing war in the Middle East in 2015 - a move that still divides the bloc and Germany. Pound drifted lower on Monday as Britain's finance minister Philip Hammond laid out the prospect of an end to austerity so long as Britain agrees a Brexit deal with the European Union.

Global Markets

• Brent oil prices fell on Tuesday, weighed down by ongoing weakness in global stock markets and by signs of rising global supply despite looming sanctions on Iran's crude exports. Brent crude oil futures were at $77 a barrel, down 0.4 percent from their last close.
• Gold prices inched down on Tuesday as the U.S. dollar gained on worries over slowing economic growth and fears the Sino-U.S. trade war could intensify again.

Global Markets at one Glance

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