inr-symbol-forex-performanc - INR
  • Greenback weakness might continue as money flows to risk assets
  • Asia-Pacific equities rallying in tandem with gold and oil prices
  • US Dollar index suggests deepening selloff. Traders watch support levels to gauge its strength

The US stock indices closed with bullish momentum, clocking gains of 1.39, 0.64 and 0.52 Percent in the Dow Jones, S&P 500 and Nasdaq indices respectively.

The risk-on rally was evident in commodities and foreign exchange markets; Norwegian Krone rose against the US dollar, supported by the current market mood and the rally in crude prices plus the dollar weakness.

Gold was seen trading comfortably above the dollar 2000 level per ounce, helped by the falling US Treasury yields as well as the concerns of fiscal and monetary stimulus driving up the inflationary pressures on the economy. Right now, the cost-of-money, indicated by the low bond-yields, is encouraging investors to buy yieldless gold. Such an environment is also curtailing the demand for haven-linked US dollar. 

Thursday’s Asia-Pacific Trading Session

The Asia-Pacific trading session in equities and cycle-sensitive assets might be bullish, at the expense of Japanese Yen and the US dollar, carried over from the strong rally in US stock indices. India’s central bank will announce its rate decision today, and USD/INR will be in play.