USD/INR opens down as trade tensions ease

16 May 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 70.27 pair now at 70.26 against 70.33 previous close.
• Pair to tip in 70.10-70.50 range today.
• Dollar/rupee opened down on Thursday as risk appetite improved on expectation that President Trump may delay imposing auto tariffs. US. Trump administration officials said that President Donald Trump is expected to delay a decision to impose auto tariffs by up to six months to avoid blowing up negotiations with the EU and Japan and further antagonize allies as he ramps up his trade war with China. Trump faces a deadline of May 18 over how to proceed with his threat to slap a tariff of as much as 25% on imported cars and parts.

Global Currency

• The euro was buoyant on Thursday as trade concerns eased on expectations that U.S. President Donald Trump will delay implementing tariffs on imported cars. Trump administration officials told Reuters on Wednesday that the president is expected to put off a decision on imposing tariffs on imported cars and parts by up to six months, for now preventing a further increase in transatlantic trade tensions.
• The euro was 0.05% higher at $1.1207, having bounced overnight from a one-week low of $1.1178. The single currency was initially hit as Italy's Deputy Prime Minister Matteo Salvini criticized European Union rules for the second day.

Global Markets

• Oil prices rose on Thursday for a third straight session, as the risk of conflict in the Middle East stoked fears of supply disruptions, negating an unexpected rise in U.S. inventories.
• Gold bugs await their next stab at $1,300, but the veil over the U.S.-China trade talks -- and where that could be headed -- has to be lifted first.

Global Markets at one Glance

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