USD/INR – The Indian rupee opened lower against the dollar ahead of crucial trade talks between the U.S. and China. The rupee opened at 69.88 versus the dollar compared with its previous close of 69.71. Asian equities and currencies extended losses on Thursday before the U.S.-China trade talks. Chinese Vice-Premier Liu He will hold negotiations with U.S. officials on Thursday and Friday in Washington after tensions between the two countries ratcheted higher following President Donald Trump remarks that he plans to increase tariffs on Chinese shipments. The U.S. has accused China of backtracking on previous promises and Trump has said that he is considering taxing all imports out of the Asian nation. Trump said on Twitter yesterday that Beijing had informed Washington that the Chinese Vice-Premier is “coming to the U.S. to make a deal.” He added that if a deal did not materialize, he is “very happy with over $100 Billion a year in tariffs filling U.S. coffers.”
EUR/USD – Against the dollar, the euro was a shade higher at $1.1196, having spent the week stuck in a tight $1.1218-$1.1155 range. EUR/USD remains holed up in the 1.1200 region, shrugging off growing risks that might normally put bears in control. The EU Commission's downgraded outlook , heightened U.S.-Sino trade tensions and 10-year German bund yields trading near -0.05 percent are all factors that should have EUR/USD trading near the 2019 low at a minimum. Bears might be treading cautiously as economic green shoots from the euro zone keep popping up, which could keep the ECB from adding stimulus to the economy as many investors have expected. The U.S. interest rate complex could be limiting the downside as well. If bears don't gain control of EUR/USD soon, odds of an upside move will increase.
29 May 2020 08:22 PM
After an extremely turbulent March and April – wherein rupee collapsed 7.5% in 1.5 months, our domestic unit has been quite stable in May.
28 May 2020 07:01 PM
Having gone in a risk-off mode in the last few months, the global investors have been wary of the major markets and eyeing the emerging markets.
27 May 2020 04:57 PM
The Corona virus pandemic has more fallout in global markets than were first expected when the virus hit the world.
20 May 2020 03:01 PM
A long term downward red channel which started in 2018 has proved to be consistent with the single currency dollar pair moving within it since then.
19 May 2020 05:39 PM
Last couple of years RBI started its policy of aggressively increasing the forex reserves.
18 May 2020 08:13 PM
After recovering smartly in April, Nifty has been under increased selling pressure in May. After touching an interim peak of 9889, it has plunged 10.8% in 11 working days.