The Indian rupee little changed at 69.30 pair now at 69.35 against 69.2150 previous close.
Pair to tip in 69.20-69.50 range today.
Dollar/rupee opened higher Monday on higher dollar demand by overseas investors as they pull out of local stocks tracking increased risk-aversion in the market. FIIs are pulling out of local equity markets after Trump warned of raising tariffs of Chinese products creating panic in the market. Local stocks opened lower following the global meltdown as re-escalation of trade war between US and China dented investor appetite for risky assets.
Global Currency
The safe-haven yen climbed and the yuan slid on Monday after U.S. President Donald Trump threatened to raise tariffs on China and Beijing was reported to be considering cancelling talks planned for this week, sending riskier assets into a spin. Trump on Sunday increased pressure on China to reach a trade deal by announcing he would hike U.S. tariffs on $200 billion worth of Chinese goods this week and target hundreds of billions more soon.
The U.S. dollar had already softened on Friday when jobs data beat expectations but a soft reading for wages meant the Federal Reserve could afford to stay patient on policy. Market on Monday moved to price in an even greater chance of a rate cut this year as Trump's tariff warnings were seen as a risk to the global economy.
Global Markets
Oil prices tumbled by more than 2 percent on Monday after U.S. President Donald Trump on Sunday said he would sharply hike tariffs on Chinese goods this week, risking derailing months of trade talks between the world's two biggest economies.
Gold prices climbed on Monday after U.S. President Donald Trump threatened to raise tariffs on Chinese goods, escalating Sino-U.S. trade tensions, which prompted risk-off sentiment and boosted.
