USD/INR opens higher on weak risk appetite, strong dlr

27 September 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 70.9550 pair now at 70.91 against 70.88 previous close.
• Pair to tip in 70.80-71.10 range today.
• Dollar/rupee opened higher Friday as worsening risk sentiments increased safe haven dollar demand. Political tensions in America amid Sino-US trade war supported safe-haven dollar demand. The greenback traded higher as risks heightened after political tension rose amid US-China trade war. The greenback traded higher against its major peers following a less-dovish-than-expected comment from US Federal Reserve board members.

Global Currency

• The dollar stood tall on Friday, holding near multi-week highs against most major currencies as heightened risks from political tensions to the Sino-U.S. trade war increased its safe-haven lustre. He added that risk aversion driven by trade war fears, a resilient U.S. economy and increasingly less-dovish-than-expected language from U.S. Federal Reserve board members were supporting the dollar.
• The pound wallowed at $1.2325, close to a two-week low hit on Thursday after the European Union's Brexit negotiator said Britain had yet to provide "legal and operational" proposals for an agreement on exiting the bloc. sentiment was fickle across markets. Positive comments from the Chinese commerce ministry on progress in trade negotiations had rallied European stocks overnight.

Global Markets

• Oil prices fell on Friday, erasing more of the gains realised after the Sept. 14 attacks on Saudi Arabian oil facilities, as the rapid return of production capacity from the world's top exporter squashed risk premiums.
• Gold traded flat early on Friday but the metal was poised to end the week lower, as investors preferred the safety of the dollar in the wake of political uncertainties in the United States.

Global Markets at one Glance

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