USD/INR Lower As China Tariff Delay Boosts Asian Currencies

USD/INR Lower As China Tariff Delay Boosts Asian Currencies

14 Aug 2019 10:03 AM
 

USD/INR opens lower tracking broad rally in Asian currencies after US defers implementing tariffs on some Chinese imports. Pair now at 70.88 against 71.40 previous close. Onshore yuan up 0.5% at 7.0236 after Washington announces that  duties on some major categories of consumer products will be postponed from September 1 to December 15. After yesterday’s announcement, tariffs on more than half of the targeted $300 billion Chinese goods will be delayed. Shanghai Composite up 0.8%, leading Asian equities higher. China July spending and activity data, released earlier today, disappoints. Dollar index little changed at 97.79 after rising 0.4% in previous session.

Sensex up 0.4%. India retail inflation rate slows to 3.15% in July from 3.18% in prior month. Brent crude down 1% at $60.68 after rallying 4.7% yesterday. “The early decline in the pair to below 71.00 has not convinced us that the uptrend is over. Local risk appetite remains tepid and foreign outflows from equities continue.  With immediate support on pair just around the corner at 70.80, we prefer to buy the dollar at current levels.

 

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