USD/INR opens higher as US readies to impose tariff on EU, weak US data

3 October 2019 / Morning Brief

Indian Rupee

• The Indian rupee little changed at 71.22 pair now at 71.33 against 71.08 previous close.
• Pair to tip in 70.10-70.40 range today.
• Dollar/rupee opened higher Thursday as globally risk appetite decreased after the US said it plans to impose duty on European Union goods amid caution ahead of Sino-US trade talks. Global risk aversion increased on back of a selloff in US equities after weak US manufacturing and employment data release. Global sentiments tumbled after US declared it will impose tax on European Union goods. Also, investors are cautious ahead of US-China trade talks.

Global Currency

• The dollar nursed losses on Thursday, hitting near one-week lows against the euro and yen, amid signs of a slowdown in U.S. economic growth and a deepening of global trade tensions. The greenback fell overnight after data showed hiring by U.S. private employers had slowed in September, the latest indicator that the Sino-U.S. trade dispute is hurting the world's largest economy. weaker-than-expected numbers follow a separate release on Tuesday that showed a sharp decline in factory activity that sent stock markets and bond yields tumbling.
• The pound GBP=D3 was steady at $1.2302 after fluctuating in a tight range as British Prime Minister Boris Johnson proposed an all-island regulatory zone in Ireland in his final pitch for a Brexit deal before the end of the month.

Global Markets

• Oil futures rebounded on Thursday, reversing losses earlier in the day, as fears over the worsening global economic outlook that hit prices hard in the previous session gave way to modest hopes for progress in resolving the U.S.-China trade war.
• Gold prices extended their gains on Thursday as weaker-than-expected U.S. jobs data reinforced global economic slowdown fears and raised expectations of further monetary policy easing by the U.S.

Global Markets at one Glance

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