Indian Rupee Off Record Low As RBI Curbs Losses, EM Woes Persist

The Indian rupee little changed at 71.28 pair now at 71.18 against 71.21 previous close.
Pair to tip in 71- 71.40 range today.
The Indian rupee came off record lows hit earlier today against the dollar to trade little changed, as an apparent intervention by the central bank offset losses stemming from persisting pressure on emerging market currencies that increased concerns of foreign fund outflows from risk assets. Depreciation in the emerging market currencies led the decline in the rupee, while higher oil prices and lack of inflows also add further pressure on the local unit.

The dollar and the yen strengthened on Tuesday as investors bid up safe haven assets amid tensions around global trade and strains in emerging market currencies. Fears of a hit to global growth from U.S. President Donald Trump's 'America First' protectionist policies have kept markets in a state of heightened anxiety for much of this year.
The euro EUR= was down 0.15 percent at $1.1600. Data released on Monday showed euro zone manufacturing growth slowing to a near two-year low in August as optimism dwindled due to the lingering threat of a global trade war. The region's key exporting nations coming under strain from the escalating global trade frictions.

Oil prices rose on Monday, supported by concerns that falling Iranian output will tighten markets once U.S. sanctions bite from November, but gains were limited by higher supply from OPEC and the United States. Brent crude oil LCOc1 was up 37 cents at $78.01 a barrel.
Gold prices eased slightly on Monday as the dollar held near a one-week high on worries over an escalation in trade conflicts between the United States and other countries. Gold prices are down about 8 percent this year against a backdrop of rising U.S. interest rates, trade disputes and the Turkish currency crisis, with investors parking their money in the dollar.

Research