USD/INR opens up US-China trade tensions, higher Brent prices

10 May 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 70.05 pair now at 70.04 against 69.94 previous close.
• Pair to tip in 69.80-70.20 range today.
• Dollar/rupee opened higher on Friday as risk aversion related to the US-China trade tensions mounted amid high Brent crude prices. Brent oil prices is inching towards $71/ barrel level while growing concerns over US-China trade war is supporting the spot pair. US-China officials began two-day talks on Thursday in a bid to avert the escalation of a trade war that threatens to derail the global economic growth. Adding to that, crude oil futures surged as US oil inventories dropped more than expected.

Global Currency

• The safe-haven Japanese yen and Swiss franc dipped on Friday, handing back some of their large gains made earlier, as risk aversion eased in Asia amid the ebb and flow in market sentiment towards U.S.-China trade negotiations. U.S. and Chinese officials began two-day talks on Thursday in a bid to avert the escalation of a trade war that threatens to derail the global economy.
• Rice export prices in top exporter India fell for a fifth consecutive week on low demand and domestic currency weakness, while traders in Vietnam looked for prospective deals from China and Egypt.

Global Markets

• Gold prices were steady on Friday, remaining on track for a weekly gain as investors shy away from riskier assets on worries that a rift over trade between the United States and China could deepen if talks between the two fail to reach a deal.
• Oil prices rose more than 1 percent on Friday amid renewed optimism that a trade deal could be struck between Washington and Beijing, calming fears that a protracted tariff war would harm global economic growth.

Global Markets at one Glance

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