The Indian roupine is expected to straighten on the opening on Friday, supported by the fall of the dollar, probably caused by investors who have withdrawn from American assets in a context of increasing commercial friction between the United States and China.
The long -term non -deliverable contract to one month indicates that the rupee will open between 86.18 and 86.20 against the US dollar, against 86,6875 on Wednesday. Indian financial markets were closed on Thursday.
The decline in the dollar “will obviously support” the Roupie at the opening, said a robist from a Bank based in Mumbai. However, it is unlikely that the Indian currency will succeed in exceeding 86, he added.
The Dollar Index dropped 1.94% on Thursday, its highest decrease in one day for more than two years, and extended its losses during Asian hours, sliding under the key bar of the 100.
Investors withdrew from American shares on Thursday, canceling part of the relief rally launched by President Donald Trump who paused the higher customs tariffs on countries other than China. The liquidation has extended to US Treasury bills in the longer term, the yield at 10 years being about to know its highest weekly increase in more than twenty years.
The markets again sanction American assets and the dollar is close to a “crisis of confidence,” said ING bank in a note.
The “Selling America” scenario becomes tangible again, treasury bills and American actions being under pressure. This can be a very toxic combination for the dollar, “said ING.
The intensification of the tariff battle between Donald Trump and China is one of the main reasons invoked by analysts to reduce exposure to American assets. Markets probably believe that the absence of immediate substitutes for certain Chinese products means higher inflationary and recessionist risks for the United States, Ing bank said.
-Trump has increased customs duties on Chinese imports to an effective rate of 145%, still intensifying commercial confrontation with high issues between the two largest economies in the world.
Key indicators:
** Roupie at one month not available to 86.40; UNESHORE TERM PRIMATE at one month at 18.5 Neck.
** Dollar index down to 100.22
** Brent dropped by 0.6% to 63 dollars per barrel
** The yield of American bonds at ten years increased to 4.46%.
** According to NSDL data, foreign investors sold $ 544 million in Indian shares on April 8.
** According to NSDL data, foreign investors sold $ 135 million in Indian bonds on April 9.
Related news :