Indian Rupee strengthens against the US dollar amid escalating trade tensions between China and the US. The USD/INR exchange rate settled 27 paise higher at 70.92 to the US dollar on Thursday close. But Rupee was seen trading around 70.68 to the US dollar recovering some of the early losses as we go into the London trading session.
China officials are skeptical about reaching a long-term trade deal with the Trump administration. Phase-one of the Trump — Xi trade deal remains on the table despite the Chile summit cancellation. Expectations for other agreements are less likely according to some Chinese officials.
President Donald Trump remains confident that a long-term trade deal can be accomplished between the two economies. He said on Thursday:
“China and the USA are working on selecting a new site for signing of Phase One of Trade Agreement, about 60% of total deal, after APEC in Chile was canceled do to unrelated circumstances. The new location will be announced soon. President Xi and President Trump will do signing,” said the US President in a Tweet.
Globally, US dollar has responded negatively after the Fed decided to cut interest rates for the third time this year. However, emerging market currencies like the Rupee couldn’t take advantage of the US dollar broad-based weakness and continue to suffer. The dollar index closed the previous trading day lower at 97.45
During the Asia trading hours, the NIFTY 50 was quoted around 11877 trading in a tight trading range. The Indian 10-year government bond yield has registered a -1.72% loss being quoted around 6.529.
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USD/INR Technical Pattern
The USD/INR technical pattern looks doesn’t seem to provide traders with a clear market direction. The exchange rate continues to remain trapped in a consolidation. Investors could keep their eyes on key support level 70.350. While on the upside, traders could eye the key resistance level established around the 71.000 level.
