USD/INR open higher on likely IRCTC related-outflows, Sino-US tension

The Indian rupee little changed at 71.18 pair now at 71.14 against 71.02 previous close.
Pair to tip in 71.05-71.30 range today.
Dollar/rupee opened higher Wednesday on likely IRCTC IPO related-outflows amid risk sentiments dampened over US-China trade tensions. Likely IRCTC related FII outflows and weak risk appetite weakened rupee. US-China trade deal may fade after US President Donald Trump blacklisted Chinese companies over the treatment of Muslim minorities threatened to derail and US imposition of visa restrictions on Chinese officials.

The British pound nursed losses on Wednesday, after hitting a one-month low on reports that Brexit talks between Britain and the European Union were close to breaking down, while the dollar weakened slightly on rising trade tensions. German Chancellor Angela Merkel told British Prime Minister Boris Johnson that a deal was "overwhelmingly unlikely," a Downing Street.
The dollar, meanwhile, gave up some ground gained overnight as the U.S. imposition of visa restrictions on Chinese officials over the treatment of Muslim minorities threatened to derail already delicate trade negotiations. move, together with the blacklisting of Chinese firms over the same issue, cast a pall over Sino-U.S. talks in Washington, sending investors to safety.

Oil prices slipped for a third consecutive session on Wednesday as the prospect of the United States and China striking a trade deal in talks this week dimmed, raising uncertainties for global economic growth and oil demand.
Gold prices firmed on Wednesday as tensions between the United States and China ratcheted up ahead of crucial trade talks later this week sapping risk appetite while concerns over Brexit.

Research