USD/INR Lower Tracking Yuan; US Defers China Tariffs

USD/INR Lower Tracking Yuan; US Defers China Tariffs

12 Sep 2019 10:04 AM
 

USD/INR opens lower on broad advance in Asian currencies after Trump delays tariff increase on Chinese goods. Pair now at 71.30, lowest since August 19, against 71.65 previous close. Chinese yuan, up 0.4% at 7.0832, leads Asian currencies higher after Trump postpones increase in tariffs on $250 billion of Chinese shipments by two weeks. Trump’s postponement comes after China earlier waived import tariffs imposed last year on few US goods.

 Shanghai Composite up 0.3%. S&P 500 Index futures advance 0.4%. Dollar index little changed at 98.64. Euro flat at 1.1012 to dollar ahead of ECB policy review. DBS expects series of easing measures - 10 basis points cut in deposit facility rate, dovish forward guidance and signal for upcoming asset purchases.

Brent crude rises 0.6% to $61.20 after falling 2.5% yesterday amid that Trump discussed easing Iran sanctions.