USD/INR opens down on ECB rate cut and stimulus, easing US-China trade tension

The Indian rupee little changed at 70.9625 pair now at 70.94 against 71.13 previous close.
Pair to tip in 70.75-71.15 range today.
Dollar/rupee opened lower Friday as sentiments improved after (ECB) promised an indefinite supply of fresh asset purchases and cut interest rates deeper into negative territory amid signs of easing US-China trade tension. After ECB cut rates and provided stimulus amid easing US-China trade tension sentiments boosted which led a fall in dollar demand. In view of the weakening economic outlook and the continued prominence of downside risk governments with fiscal space should act in an effective and timely manner.

The yen was pinned near a six-week low versus the dollar as signs the United States and China were narrowing their differences over trade ahead of key talks decreased demand for safe haven assets. The euro held steady versus the dollar in Asia after swinging wildly on Thursday following the European Central Bank's surprise decision to resume government debt purchases from November to support a flagging economy.
The dollar has also drawn support from a spike in U.S. Treasury yields, with the benchmark 10-year yield at a five-week high. President Donald Trump said on Thursday he would not rule out an interim trade pact with China. two sides are preparing for new rounds of talks aimed at curbing a trade war.

Gold prices were little changed on Friday, on track for a third weekly decline as optimism over the U.S.-China trade talk fanned risk sentiment, while palladium hovered around a record peak on concerns about tight supplies of the autocatalyst metal.
Oil futures fell on Friday as optimism over an end to the U.S.-China trade war faded, leaving prices set for a weekly loss after days of wild gyrations.

Research