USD/INR opens up tracking escalating US-China trade war, Argentina crisis

The Indian rupee little changed at 71.9550 pair now at 72.04 against 71.40 previous close.
Pair to tip in 71.80-72.20 range today.
Dollar/rupee opened higher Tuesday as risk sentiments worsened following worsening US-China trade war tension amid Argentina's financial crisis. Escalating US-China trade war concern and Argentinean crisis led to higher safe haven dollar demand. Asian currencies are mostly weak. The US and China launched fresh tit-for-tat tariffs on each others goods, escalating its prolonged trade tiff as the US imposed 15% tariffs on a variety of Chinese goods.

The U.S. dollar continued to climb Tuesday morning in Asia, rising to highs not seen since April 2017. The US Dollar Index that tracks the greenback against a basket of currencies was up 0.33% to 99.25. The climb in the dollar matched declines in the British pound, which took a hit after Prime Minister Boris Johnson asked parliament to vote against any delays to his Brexit plan. He wants Brexit to happen by Oct. 31.
Sterling was the worst performer among its Group-of-10 peers after Prime Minister Boris Johnson threatened to kick out Conservative lawmakers who vote to block a no-deal Brexit as Parliament prepares to return from holiday on Tuesday. The U.K. manufacturing sector shrank in August at the fastest pace since 2012.

Gold continued to trade in the green on the second day this week, after new tariffs imposed by the U.S. and China kicked in the day before. Both countries have yet to set a date this month to resume trade talks.
Oil prices were mixed on Tuesday as the ongoing U.S.-China trade war cast a pall over markets, with soft South Korean data adding to concerns over emerging markets and a rise in OPEC output. U.S. crude (CLc1) was down 21 cents, or 0.4%, at $54.89 a barrel.

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