USD/INR opens down on signs of easing US-China trade tension

The Indian rupee little changed at 71.78 pair now at 71.66 against 71.80 previous close.
Pair to tip in 71.50-71.90 range today.
Dollar/rupee opened lower Friday as easing Sino-US trade tension brought relief to risk sentiments, weighing down safe haven dollar demand. Chinese spokesman said it won't retaliate US tariffs immediately and indicated that both countries are in effective communication and are willing to return to negotiation table. Risk sentiments improved after this news. The spot pair traded at Rs 71.69/$1 after opening at Rs 71.77/$1 Friday.

The dollar held firm against the yen on Friday, as comments from Beijing sparked renewed hopes that China and the United States could get full-fledged negotiations back on track to resolve their protracted trade dispute. The U.S. currency was also supported by investors' month-end rebalancing needs, which has helped lift the dollar index to its highest level in a month.
The euro was little changed at $1.1058 EUR= , having hit a four-week low of $1.1042 in the previous session, hurt by a sluggish euro zone economy and likely monetary easing from the European Central Bank (ECB) next month. Boris Johnson suspended parliament for more than a month to dodge a possible no-confidence vote and take Britain out of the European Union on the Oct. 31 deadline.

Oil took a breather on Friday after three days of solid gains, but was set for its strongest week since early July, boosted by a decline in U.S inventories and a looming hurricane in Florida, while new signs of trade talks emerged.
Gold prices dipped on Friday as the US and China indicated they may resume talks to resolve their protracted trade conflict, putting the metal on track for a small weekly loss despite a strong month.

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