The Indian rupee tumbled by 24 paise to settle at 71.56 (provisional) against the US dollar on Tuesday as concerns over the economic fallout from coronavirus outbreak continued to roil forex market sentiment.

Besides, sustained foreign fund outflows and subdued equities also put pressure on the rupee.

Starting off the session on a weaker note, the rupee weakened further to hit the day's low of 71.56 against the American currency. The domestic unit finally settled the day at 71.56, a drop of 24 paise over its previous close.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.15 per cent to 99.15.

The 10-year government bond yield was at 6.39 per cent.

Global crude oil benchmark Brent futures dropped 1.89 per cent to trade at $56.58 per barrel.

"Rupee started the day at weak note crossing beyond 71.50, majorly on back of selling from institution in risky assets as FIIs (are) likely to be pulling out money from equities as the global market keep a check on slowdown affects on rising Coronavirus fears in China," LKP Securities Senior Research Analyst (Commodity &amp; Currency) Jateen Trivedi said.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.4259 and for rupee/euro at 77.4162. The reference rate for rupee/British pound was fixed at 93.1737 and for rupee/100 Japanese yen at 65.02.

On the equities front, the Sensex was down 161.31 points or 0.39 per cent at 40,894.38, while the NSE barometer Nifty settled at 11,992.50, showing a fall of 53.30 points or 0.44 per cent.

Meanwhile, worries over rising death toll and the economic fallout from the novel coronavirus continued to haunt investors globally.

The coronavirus epidemic that emerged in central China has now killed nearly 1,800 people and has spread around the world.&nbsp;

The Indian rupee tumbled by 24 paise to settle at 71.56 (provisional) against the US dollar on Tuesday as concerns over the economic fallout from coronavirus outbreak continued to roil forex market sentiment.

The Indian rupee tumbled by 24 paise to settle at 71.56 (provisional) against the US dollar on Tuesday as concerns over the economic fallout from coronavirus outbreak continued to roil forex market sentiment. Besides, sustained foreign fund outflows and subdued equities also put pressure on the rupee. Starting off the session on a weaker note, the rupee weakened further to hit the day's low of 71.56 against the American currency. The domestic unit finally settled the day at 71.56, a drop of 24 paise over its previous close. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.15 per cent to 99.15. The 10-year government bond yield was at 6.39 per cent. Global crude oil benchmark Brent futures dropped 1.89 per cent to trade at $56.58 per barrel. "Rupee started the day at weak note crossing beyond 71.50, majorly on back of selling from institution in risky assets as FIIs (are) likely to be pulling out money from equities as the global market keep a check on slowdown affects on rising Coronavirus fears in China," LKP Securities Senior Research Analyst (Commodity & Currency) Jateen Trivedi said. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.4259 and for rupee/euro at 77.4162. The reference rate for rupee/British pound was fixed at 93.1737 and for rupee/100 Japanese yen at 65.02. On the equities front, the Sensex was down 161.31 points or 0.39 per cent at 40,894.38, while the NSE barometer Nifty settled at 11,992.50, showing a fall of 53.30 points or 0.44 per cent. Meanwhile, worries over rising death toll and the economic fallout from the novel coronavirus continued to haunt investors globally. The coronavirus epidemic that emerged in central China has now killed nearly 1,800 people and has spread around the world.

Rupee slips 24 paise to settle at 71.56 against US dollar

The rupee declined by 22 paise to settle at 71.40 against the US dollar on Friday amid selling in domestic equities and strengthening of the American currency overseas.

Forex traders said the rupee traded weak largely owing to strengthening of the US dollar ahead of the non-farm payrolls number scheduled to be released later in the day.

At the interbank foreign exchange market, the local currency opened on a weak note at 71.26.

During the day, the local unit lost further ground and touched a low of 71.49, before finally settling for the day at 71.40 against the US dollar, down 22 paise over its previous close.

The domestic unit had settled at 71.18 on Thursday.

On a weekly basis, the rupee lost 8 paise.

"Rupee traded weak on Friday as dollar scaled high towards 71.35, mainly on back of on weakening risk appetite amid a strong greenback ahead of US non-farm payroll data due later today," said Jateen Trivedi, Senior Research Analyst (Commodity &amp; Currency) at LKP Securities.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.09 per cent to 98.58.

"Volatility for the rupee in the first half of the session remained low but in the latter half the currency started to come under pressure," said Gaurang Somaiyaa, Forex &amp; Bullion Analyst, Motilal Oswal Financial Services.

Somaiyaa further said on the domestic front, market participants will be keeping an eye on inflation number that will be released next week; the expectation is that the inflation could inch higher and that could further weigh on the rupee.

On the domestic market front, the 30-share BSE Sensex fell 164.18 points or 0.40 per cent to 41,141.85. The broader NSE Nifty settled lower by 39.60 points or 0.33 per cent at 12,098.35.

The 10-year Indian government bond yield was at 6.44 per cent.

Meanwhile, the global crude benchmark Brent futures fell 0.15 per cent to trade at $54.85 per barrel.

Foreign institutional investors sold equities worth Rs 560.36 crore on a net basis on Thursday, according to provisional exchange data.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.2558 and for rupee/euro at 78.3804. The reference rate for rupee/British pound was fixed at 92.5195 and for rupee/100 Japanese yen at 64.82.&nbsp; 
&nbsp;

The rupee declined by 22 paise to settle at 71.40 against the US dollar on Friday amid selling in domestic equities and strengthening of the American currency overseas.

The rupee declined by 22 paise to settle at 71.40 against the US dollar on Friday amid selling in domestic equities and strengthening of the American currency overseas. Forex traders said the rupee traded weak largely owing to strengthening of the US dollar ahead of the non-farm payrolls number scheduled to be released later in the day. At the interbank foreign exchange market, the local currency opened on a weak note at 71.26. During the day, the local unit lost further ground and touched a low of 71.49, before finally settling for the day at 71.40 against the US dollar, down 22 paise over its previous close. The domestic unit had settled at 71.18 on Thursday. On a weekly basis, the rupee lost 8 paise. "Rupee traded weak on Friday as dollar scaled high towards 71.35, mainly on back of on weakening risk appetite amid a strong greenback ahead of US non-farm payroll data due later today," said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.09 per cent to 98.58. "Volatility for the rupee in the first half of the session remained low but in the latter half the currency started to come under pressure," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services. Somaiyaa further said on the domestic front, market participants will be keeping an eye on inflation number that will be released next week; the expectation is that the inflation could inch higher and that could further weigh on the rupee. On the domestic market front, the 30-share BSE Sensex fell 164.18 points or 0.40 per cent to 41,141.85. The broader NSE Nifty settled lower by 39.60 points or 0.33 per cent at 12,098.35. The 10-year Indian government bond yield was at 6.44 per cent. Meanwhile, the global crude benchmark Brent futures fell 0.15 per cent to trade at $54.85 per barrel. Foreign institutional investors sold equities worth Rs 560.36 crore on a net basis on Thursday, according to provisional exchange data. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.2558 and for rupee/euro at 78.3804. The reference rate for rupee/British pound was fixed at 92.5195 and for rupee/100 Japanese yen at 64.82.

Rupee slips 22 paise to 71.40 against USD on strong dollar demand

A gauge of <a href="https://www.wionews.com/business-economy/global-markets-asian-shares-lower-as-investors-book-decade-end-profits-271229">Asian shares</a> was toppled from an 18-month top on Monday as heightened Middle East tensions sent investors scurrying for the safety of gold, which hit a near seven-year high while oil jumped to four-month peaks.

The United States detected a heightened state of alert by Iran's missile forces, as President <a href="https://www.wionews.com/business-economy/global-stocks-rattled-after-donald-trump-says-no-deadline-on-us-china-trade-deal-266025">Donald Trump</a> warned the US&nbsp;would strike back, "perhaps in a disproportionate manner," if Iran attacked any American person or target.

Iraq's parliament on Sunday recommended all foreign troops be ordered out of the country after the US&nbsp;killing of a top Iranian military commander and an Iraqi militia leader.

Spot gold surged 1.5 per cent&nbsp;to $1,579.55 per ounce in jittery trade and reached its highest since April 2013.

<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Oil prices</a> added to their gains on fears any conflict in the region could disrupt global supplies.

Brent crude futures rose $1.46 to $70.06 a barrel, while US crude climbed $1.17 to $64.22.

"The risk of further escalation has clearly gone up&nbsp;given the direct attack on Iran, Iran's threat of retaliation and Trump's desire to look tough - posing the threat of higher oil prices," said Shane Oliver, chief economist at AMP Capital.

"Historically though oil prices need to double to pose a severe threat to global growth and we are a long way from that."

Watch Video:

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/trump-warns-he-may-hit-iraq-with-sanctions-272385/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

MSCI's broadest index of Asia-Pacific shares outside Japan&nbsp;slipped 0.7 per cent.

Japan's Nikkei slid almost 2 per cent&nbsp;in a sour return from holiday, while E-Mini futures for the S&amp;P 500&nbsp; fell 0.5&nbsp;per cent in very choppy trade.

Chinese shares opened in the red too, with the blue-chip CSI300 index off a shade while Australian shares were off 0.4 per cent.

"Geopolitical tensions look like remaining elevated in the coming days, so lending support to oil prices and keeping risk asset markets on the defensive," said Ray Attrill, head of FX strategy at National Australia Bank.

Sovereign bonds benefited from the safety bid with yields on 10-year Treasuries down at 1.769&nbsp;per cent&nbsp;having fallen 10 basis points on Friday. Treasury futures gained 5-1/2 ticks.

In currency markets, the Japanese yen remained the favoured safe harbour courtesy of Japan's massive holdings of foreign assets. Investors assume Japanese funds would repatriate their money during a truly global crisis, pushing the yen higher.

On Monday, the dollar was last at 107.98 yen, after falling to a three-month trough of 107.78 earlier in the session. The euro likewise eased to 120.55 yen having hit a three-week low.

The dollar was steadier against the other majors, with the euro little changed at $1.1161. Against a basket of currencies, the dollar was holding at 96.86.

The risk-sensitive currencies of Australia and New Zealand were on track for their fourth straight session of losses.

A gauge of Asian shares was toppled from an 18-month top on Monday as heightened Middle East tensions sent investors scurrying for the safety of gold, which hit a near seven-year high while oil jumped to four-month peaks.

A gauge of Asian shares was toppled from an 18-month top on Monday as heightened Middle East tensions sent investors scurrying for the safety of gold, which hit a near seven-year high while oil jumped to four-month peaks. The United States detected a heightened state of alert by Iran's missile forces, as President Donald Trump warned the US would strike back, "perhaps in a disproportionate manner," if Iran attacked any American person or target. Iraq's parliament on Sunday recommended all foreign troops be ordered out of the country after the US killing of a top Iranian military commander and an Iraqi militia leader. Spot gold surged 1.5 per cent to $1,579.55 per ounce in jittery trade and reached its highest since April 2013. Oil prices added to their gains on fears any conflict in the region could disrupt global supplies. Brent crude futures rose $1.46 to $70.06 a barrel, while US crude climbed $1.17 to $64.22. "The risk of further escalation has clearly gone up given the direct attack on Iran, Iran's threat of retaliation and Trump's desire to look tough - posing the threat of higher oil prices," said Shane Oliver, chief economist at AMP Capital. "Historically though oil prices need to double to pose a severe threat to global growth and we are a long way from that." Watch Video: MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.7 per cent. Japan's Nikkei slid almost 2 per cent in a sour return from holiday, while E-Mini futures for the S&P 500 fell 0.5 per cent in very choppy trade. Chinese shares opened in the red too, with the blue-chip CSI300 index off a shade while Australian shares were off 0.4 per cent. "Geopolitical tensions look like remaining elevated in the coming days, so lending support to oil prices and keeping risk asset markets on the defensive," said Ray Attrill, head of FX strategy at National Australia Bank. Sovereign bonds benefited from the safety bid with yields on 10-year Treasuries down at 1.769 per cent having fallen 10 basis points on Friday. Treasury futures gained 5-1/2 ticks. In currency markets, the Japanese yen remained the favoured safe harbour courtesy of Japan's massive holdings of foreign assets. Investors assume Japanese funds would repatriate their money during a truly global crisis, pushing the yen higher. On Monday, the dollar was last at 107.98 yen, after falling to a three-month trough of 107.78 earlier in the session. The euro likewise eased to 120.55 yen having hit a three-week low. The dollar was steadier against the other majors, with the euro little changed at $1.1161. Against a basket of currencies, the dollar was holding at 96.86. The risk-sensitive currencies of Australia and New Zealand were on track for their fourth straight session of losses.

Gold, oil prices soar amid US-Iran tensions

Investors rushed into&nbsp;safe-haven&nbsp;assets on Friday after&nbsp;US&nbsp;airstrikes in Iraq killed a senior Iranian military official, sending the Japanese&nbsp;yen&nbsp;to a three-month high, while the&nbsp;<a href="https://www.wionews.com/business-economy/new-year-cheer-rupee-rises-15-paise-to-6962-against-us-dollar-in-early-trade-187635">US&nbsp;dollar&nbsp;index</a> was knocked by the weakest domestic factory activity in a decade.

In addition to the&nbsp;yen,&nbsp;US&nbsp;Treasuries, German bunds and gold rallied after the overnight airstrike&nbsp;in Baghdad killed <a href="https://www.wionews.com/world/deputy-commander-of-quds-force-to-replace-soleimani-irans-supreme-leader-ayatollah-ali-khamenei-271905">Qassem&nbsp;Soleimani</a>, Tehran's most prominent military commander and the architect of its growing military influence in the Middle East.

"Overall, geopolitical risk premia have risen substantially overnight," said Karl Schamotta, chief market strategist at Cambridge Global Payments. Investors were "really looking for&nbsp;safe&nbsp;havens and a port in the storm," he added.

The Japanese&nbsp;yen&nbsp;had risen as high as 107.82 per&nbsp;dollar&nbsp;and was last up 0.48 per cent&nbsp;on the day at 108.04. The&nbsp;yen&nbsp;is often seen as a&nbsp;haven&nbsp;from risk, given Japan's status as the world's largest creditor nation. A holiday in Tokyo also made for thin conditions, exaggerating the move.

The&nbsp;US&nbsp;dollar&nbsp;index&nbsp;initially benefited from the move into&nbsp;safe-haven&nbsp;assets, but those gains were erased after the Institute for Supply Management (ISM) reported that the manufacturing sector contracted significantly in December. It was last up 0.03 per cent&nbsp;on the day at 96.873.

The attack sparked concerns about crude supply disruptions, lifting oil prices more than $3. Petrocurrencies gained slightly on the higher crude prices, but those were then largely offset by the overall move away from risk, said Schamotta.

The&nbsp;US&nbsp;manufacturing sector contracted in December by the most in more than a decade, with order volumes crashing to a near 11-year low and factory employment falling for a fifth straight month, according to a report from <a href="https://www.wionews.com/business-economy/us-manufacturing-contracts-for-first-time-in-3-years-industry-survey-247442">ISM</a> released on Friday.

"That is a depressing number," said Schamotta.

It suggests "<a href="https://www.wionews.com/world/us-farmers-see-another-bleak-year-despite-phase-1-trade-deal-271864">trade war-related</a> uncertainty has actually damaged the manufacturing sector on a sustained basis and that points to weakness in GDP, particularly in the coming quarter because what you're likely to see is an inventory drawdown as opposed to continued build."

The longer-term effects on the&nbsp;dollar&nbsp;are unclear. Though it weakened Friday, the greenback may ultimately benefit if slower&nbsp;US&nbsp;manufacturing dents hopes for global growth in 2020.

"The idea that other countries that are large exporters to the&nbsp;US&nbsp;might see a large rebound in the near term,&nbsp;that idea is losing traction here," said Schamotta.

Investors rushed into safe-haven assets on Friday after US airstrikes in Iraq killed a senior Iranian military official, sending the Japanese yen to a three-month high, while the US dollar index was knocked by the weakest domestic factory activity in a decade.

Investors rushed into safe-haven assets on Friday after US airstrikes in Iraq killed a senior Iranian military official, sending the Japanese yen to a three-month high, while the US dollar index was knocked by the weakest domestic factory activity in a decade. In addition to the yen, US Treasuries, German bunds and gold rallied after the overnight airstrike in Baghdad killed Qassem Soleimani, Tehran's most prominent military commander and the architect of its growing military influence in the Middle East. "Overall, geopolitical risk premia have risen substantially overnight," said Karl Schamotta, chief market strategist at Cambridge Global Payments. Investors were "really looking for safe havens and a port in the storm," he added. The Japanese yen had risen as high as 107.82 per dollar and was last up 0.48 per cent on the day at 108.04. The yen is often seen as a haven from risk, given Japan's status as the world's largest creditor nation. A holiday in Tokyo also made for thin conditions, exaggerating the move. The US dollar index initially benefited from the move into safe-haven assets, but those gains were erased after the Institute for Supply Management (ISM) reported that the manufacturing sector contracted significantly in December. It was last up 0.03 per cent on the day at 96.873. The attack sparked concerns about crude supply disruptions, lifting oil prices more than $3. Petrocurrencies gained slightly on the higher crude prices, but those were then largely offset by the overall move away from risk, said Schamotta. The US manufacturing sector contracted in December by the most in more than a decade, with order volumes crashing to a near 11-year low and factory employment falling for a fifth straight month, according to a report from ISM released on Friday. "That is a depressing number," said Schamotta. It suggests "trade war-related uncertainty has actually damaged the manufacturing sector on a sustained basis and that points to weakness in GDP, particularly in the coming quarter because what you're likely to see is an inventory drawdown as opposed to continued build." The longer-term effects on the dollar are unclear. Though it weakened Friday, the greenback may ultimately benefit if slower US manufacturing dents hopes for global growth in 2020. "The idea that other countries that are large exporters to the US might see a large rebound in the near term, that idea is losing traction here," said Schamotta.

Safe-haven yen lifted, US dollar hits in Grim data after Qassem Soleimani strike

Gold firmed on Thursday, edging back towards the three-month peak it reached earlier in the week on the back of dollar weakness, with the market focusing on minutes of the US&nbsp;Federal Reserve's December policy meeting.

Spot gold was up 0.4 per cent&nbsp;to $1,523.12 per ounce as of 1248 GMT, having touched its highest since Sept. 25 at $1,525.20 on Tuesday. The US&nbsp;gold futures were up 0.2 per cent&nbsp;at $1,525.80.

"We are seeing a bit of a bounce-back&nbsp;in the dollar but if you look at the movements that we saw (in the past few days), it is probably supporting gold in the interim," said OANDA analyst Craig Erlam.

The negative correlation between the <a href="https://www.wionews.com/business-economy/dollar-snaps-six-day-losing-streak-a-flat-start-for-2020-271653">dollar</a> and bullion is what really propelled gold from $1,480 to $1,520, he said, but further upside in the US&nbsp;currency could put pressure on gold.

Against key rivals, the dollar was up 0.3 per cent&nbsp;this session but was trading not far from the six-month low it touched on Tuesday.

Beijing's decision to ease monetary policy further supported bullion, <a href="https://www.wionews.com/business-economy/sterling-rebounds-on-eve-of-uk-election-267749">Erlam</a> added.

China's central bank on Wednesday said it was cutting the amount of cash that all banks must hold as reserves, releasing funds to shore up the slowing economy.

Bullion prices posted their biggest annual rise in nearly a decade in 2019, boosted by the drawn-out trade war between the <a href="https://www.wionews.com/world/china-halts-british-stock-link-over-political-tensions-sources-271591">United States and China</a> that dragged on global economic growth.

Many analysts said prices were likely to rise further in 2020, with shaky growth and global stock markets potentially looking unsustainable at record highs.

"A key thing to look out for is stock markets, which have been setting new highs," said Brian Lan, managing director at dealer GoldSilver Central in Singapore. "In case there is some correction, we (could) see some capital flows into gold."

<a href="https://www.wionews.com/world/united-kingdoms-new-government-increases-minimum-wage-to-ps872-271242">Brexit</a>, the US&nbsp;presidential election, <a href="https://www.wionews.com/world/hong-kong-protests-severely-challenged-one-country-two-systems-principle-xi-in-his-new-year-address-271325">protests in Hong Kong</a> and <a href="https://www.wionews.com/world/kim-says-north-korea-to-show-new-strategic-weapon-leaves-room-for-talks-271331">tensions with North Korea</a> would be the other key factors for the market this year, he said.

Investor focus has now turned to the minutes of the <a href="https://www.wionews.com/business-economy/gold-climbs-to-three-month-high-poised-for-best-year-since-2010-271231">Federal Reserve's</a> December&nbsp;10-11 policy meeting, due at 1900 GMT on Friday. Lower interest rates encourage the buying of non-interest-paying bullion.

"Friday's US&nbsp;manufacturing ISM and the December <a href="https://www.wionews.com/business-economy/global-markets-asian-shares-buoyed-by-wall-st-rally-but-china-worry-caps-gains-267070">Federal Open Market Committee</a> (FOMC) minutes could provide an impulse," <a href="https://www.wionews.com/business-economy/oil-prices-surge-after-us-strike-kills-iranian-general-271775">Stephen Innes</a>, a market strategist at AxiTrader said in a note.

Among other precious metals, silver gained 0.5 per cent&nbsp;to $17.92 per ounce, while platinum rose 1.7 per cent&nbsp;to $979.65 and palladium edged up 0.4 per cent&nbsp;to $1,947.37 per ounce.

Gold firmed on Thursday, edging back towards the three-month peak it reached earlier in the week on the back of dollar weakness, with the market focusing on minutes of the US Federal Reserve's December policy meeting.

Gold firmed on Thursday, edging back towards the three-month peak it reached earlier in the week on the back of dollar weakness, with the market focusing on minutes of the US Federal Reserve's December policy meeting. Spot gold was up 0.4 per cent to $1,523.12 per ounce as of 1248 GMT, having touched its highest since Sept. 25 at $1,525.20 on Tuesday. The US gold futures were up 0.2 per cent at $1,525.80. "We are seeing a bit of a bounce-back in the dollar but if you look at the movements that we saw (in the past few days), it is probably supporting gold in the interim," said OANDA analyst Craig Erlam. The negative correlation between the dollar and bullion is what really propelled gold from $1,480 to $1,520, he said, but further upside in the US currency could put pressure on gold. Against key rivals, the dollar was up 0.3 per cent this session but was trading not far from the six-month low it touched on Tuesday. Beijing's decision to ease monetary policy further supported bullion, Erlam added. China's central bank on Wednesday said it was cutting the amount of cash that all banks must hold as reserves, releasing funds to shore up the slowing economy. Bullion prices posted their biggest annual rise in nearly a decade in 2019, boosted by the drawn-out trade war between the United States and China that dragged on global economic growth. Many analysts said prices were likely to rise further in 2020, with shaky growth and global stock markets potentially looking unsustainable at record highs. "A key thing to look out for is stock markets, which have been setting new highs," said Brian Lan, managing director at dealer GoldSilver Central in Singapore. "In case there is some correction, we (could) see some capital flows into gold." Brexit, the US presidential election, protests in Hong Kong and tensions with North Korea would be the other key factors for the market this year, he said. Investor focus has now turned to the minutes of the Federal Reserve's December 10-11 policy meeting, due at 1900 GMT on Friday. Lower interest rates encourage the buying of non-interest-paying bullion. "Friday's US manufacturing ISM and the December Federal Open Market Committee (FOMC) minutes could provide an impulse," Stephen Innes, a market strategist at AxiTrader said in a note. Among other precious metals, silver gained 0.5 per cent to $17.92 per ounce, while platinum rose 1.7 per cent to $979.65 and palladium edged up 0.4 per cent to $1,947.37 per ounce.

Gold rises back towards three-month high, markets eye Fed minutes

The&nbsp;dollar&nbsp;snapped a six-day losing streak to add 0.2 per cent&nbsp;on Thursday, the first trading day of 2020, pushing the euro&nbsp;off&nbsp;five-month highs while the&nbsp;offshore yuan shrugged&nbsp;off-reserve ratio cuts that could add $115 billion worth of liquidity.

Trading may remain thin until Tuesday when most European countries open after Monday's Epiphany holiday but market players will be relieved the&nbsp;dollar&nbsp;navigated the thin-liquidity holiday period without experiencing the money market squeezes many had feared.

But wariness remains that there could be a repeat of last January's "flash crash" when massive stop-loss selling swept through holiday-thinned markets. Japanese retail investors are seen to have gone into the <a href="https://www.wionews.com/world/japans-naruhito-hopes-for-a-year-without-natural-disasters-271532">Tokyo</a> holiday heavily short yen and long high-yielding currencies, including the Turkish lira.

Such yen moves tend to fuel wild swings in the&nbsp;dollar&nbsp;as well but traders may be better prepared than last year.

"There had been some talk of a possible&nbsp;dollar&nbsp;squeeze but US&nbsp;rates have been calm as the Fed has been on top of the game and providing enough liquidity. So now&nbsp;dollar-yen is mostly moving in line with the general risk sentiment," said Lauri Halikka, fixed income and FX strategist at SEB in Stockholm.

US&nbsp;President <a href="https://www.wionews.com/world/kim-a-man-of-his-word-on-denuclearization-donald-trump-271377">Donald Trump</a> said on Tuesday that Phase One&nbsp;of <a href="https://www.wionews.com/world/us-china-phase-one-trade-deal-to-be-signed-january-15-trump-271308">trade deal</a> with China would be signed on January&nbsp;15 at the White House, but uncertainty surrounds details of the agreement.

Having ended December almost 2 per cent&nbsp;lower against a basket of currencies, the&nbsp;dollar&nbsp;inched up to 96.55 while against the euro it was flat around $1.12095, just&nbsp;off&nbsp;its early-August peak of $1.1249. It ended 2019 almost flat.

The yuan closed at 6.9631 to the&nbsp;dollar, its strongest close since August 2, and its&nbsp;offshore version also firmed after an initial downward move after China's Wednesday move to cut the amount of cash that banks must hold, releasing $115 billion worth of funds to support the economy.

But the move had been widely expected ahead of January's Lunar New Year holidays and after <a href="https://www.wionews.com/business-economy/sensex-falls-181-points-to-close-at-4146126-nifty-at-1221455-270010">Premier Li Keqiang's</a> pledge last month to unleash more stimulus.

In terms of data, final purchasing managers indexes painted a slightly brighter than expected picture across much of Asia and Europe, with final French, German and euro zone readings a touch better than advance PMIs. However, they confirmed euro zone activity contracting for the 11th straight month.

The euro strengthened 1.8 per cent&nbsp;to the&nbsp;dollar&nbsp;last month but the PMIs failed to lift it further even though bond yields extended their rise and inflation expectations rose to the highest since July.

But <a href="https://www.wionews.com/business-economy/nifty-sensex-slip-after-rbi-surprises-by-holding-rates-steady-266369">Societe Generale</a> analysts wrote; "Higher bond yields are likely to keep the euro's micro-rally going, wildfires will keep a lid on Aussie&nbsp;dollar, and PMIs and oil are supporting Norwegian, Swedish and Canadian currencies."

The Swedish crown firmed 0.3 per cent&nbsp;against the euro after PMIs rose in December after three months of declines though they still languished in contraction territory.

Norway's PMI index rose to 55.5 points from November's revised 53.8 points, allowing the Norwegian crown to scale new 3-1/2-month highs to the euro.

The Australian&nbsp;dollar&nbsp;slipped 0.2 per cent&nbsp;while the Canadian&nbsp;dollar&nbsp;was close to 2-1/2-month highs.

The British pound slipped 0.2 per cent&nbsp;however after December's 2.5 per cent&nbsp;gain.

The dollar snapped a six-day losing streak to add 0.2 per cent on Thursday, the first trading day of 2020, pushing the euro off five-month highs while the offshore yuan shrugged off-reserve ratio cuts that could add $115 billion worth of liquidity.

The dollar snapped a six-day losing streak to add 0.2 per cent on Thursday, the first trading day of 2020, pushing the euro off five-month highs while the offshore yuan shrugged off-reserve ratio cuts that could add $115 billion worth of liquidity. Trading may remain thin until Tuesday when most European countries open after Monday's Epiphany holiday but market players will be relieved the dollar navigated the thin-liquidity holiday period without experiencing the money market squeezes many had feared. But wariness remains that there could be a repeat of last January's "flash crash" when massive stop-loss selling swept through holiday-thinned markets. Japanese retail investors are seen to have gone into the Tokyo holiday heavily short yen and long high-yielding currencies, including the Turkish lira. Such yen moves tend to fuel wild swings in the dollar as well but traders may be better prepared than last year. "There had been some talk of a possible dollar squeeze but US rates have been calm as the Fed has been on top of the game and providing enough liquidity. So now dollar-yen is mostly moving in line with the general risk sentiment," said Lauri Halikka, fixed income and FX strategist at SEB in Stockholm. US President Donald Trump said on Tuesday that Phase One of trade deal with China would be signed on January 15 at the White House, but uncertainty surrounds details of the agreement. Having ended December almost 2 per cent lower against a basket of currencies, the dollar inched up to 96.55 while against the euro it was flat around $1.12095, just off its early-August peak of $1.1249. It ended 2019 almost flat. The yuan closed at 6.9631 to the dollar, its strongest close since August 2, and its offshore version also firmed after an initial downward move after China's Wednesday move to cut the amount of cash that banks must hold, releasing $115 billion worth of funds to support the economy. But the move had been widely expected ahead of January's Lunar New Year holidays and after Premier Li Keqiang's pledge last month to unleash more stimulus. In terms of data, final purchasing managers indexes painted a slightly brighter than expected picture across much of Asia and Europe, with final French, German and euro zone readings a touch better than advance PMIs. However, they confirmed euro zone activity contracting for the 11th straight month. The euro strengthened 1.8 per cent to the dollar last month but the PMIs failed to lift it further even though bond yields extended their rise and inflation expectations rose to the highest since July. But Societe Generale analysts wrote; "Higher bond yields are likely to keep the euro's micro-rally going, wildfires will keep a lid on Aussie dollar, and PMIs and oil are supporting Norwegian, Swedish and Canadian currencies." The Swedish crown firmed 0.3 per cent against the euro after PMIs rose in December after three months of declines though they still languished in contraction territory. Norway's PMI index rose to 55.5 points from November's revised 53.8 points, allowing the Norwegian crown to scale new 3-1/2-month highs to the euro. The Australian dollar slipped 0.2 per cent while the Canadian dollar was close to 2-1/2-month highs. The British pound slipped 0.2 per cent however after December's 2.5 per cent gain.

Dollar snaps six-day losing streak, a flat start for 2020

The <a href="https://www.wionews.com/south-asia/pakistan-rupee-falls-to-historic-low-against-us-dollar-gdp-growth-expected-to-fall-to-24-per-cent-227151">dollar</a> rose on Wednesday and trade-exposed currencies fell after the US&nbsp;president threatened a trade war escalation and China condemned a US&nbsp;senate measure backing pro-democracy protesters in Hong Kong.

China's yuan slipped to a new two-week low in overnight trading after US&nbsp;President <a href="https://www.wionews.com/world/trump-cook-meeting-culminates-with-visit-to-apple-factory-263332">Donald Trump</a> threatened to raise new tariffs on Chinese imports if ongoing trade negotiations fail.

China condemned the US&nbsp;legislation aimed at protecting human rights in Hong Kong, saying that the US&nbsp;should stop interfering.

After four days of falling, the dollar was up 0.1 per cent&nbsp;against both the euro and a basket of currencies.

"Today the main focus is the trade talks between China and the US&nbsp;and we are seeing risk aversion," said Piotr Matys, currency strategist at Rabobank.

Matys said that the US&nbsp;senate's bill in support of Hong Kong could complicate progress towards a preliminary trade deal.

Markets had hoped that a partial trade deal to end the 16-month US-China trade war could be signed at a summit in <a href="https://www.wionews.com/world/chile-police-suspend-use-of-birdshot-against-protesters-after-outcry-over-eye-injuries-263242">Chile</a>, which was scheduled for mid-November. The summit was cancelled, leaving the outlook for a deal unclear.

Adam Cole, chief currency strategist at RBC Capital Markets said that a preliminary "phase one" trade deal could be reached by the end of the year.

"The prospect of a broader more all-encompassing deal will drag on well into next year," he added.

"The market is worrying (about) this sort of exogenous shock to the process by the build-up of tension in Hong Kong - I ultimately doubt that either side will allow that to delay the process," Cole said.

The Canadian dollar fell against the US&nbsp;dollar to its lowest since October&nbsp;11 after a speech by the <a href="https://www.wionews.com/business-economy/asian-markets-mostly-down-after-mixed-lead-from-wall-street-213578">Bank of Canada</a>'s senior deputy governor boosted the perceived likelihood of a rate cut.&nbsp;

Trade-exposed currencies took a hit from the worsening US-China relations. The Australian and New Zealand dollars were both down 0.4 per cent&nbsp;versus the US&nbsp;dollar.

The Norwegian crown was down 0.9 per cent&nbsp;versus the dollar&nbsp;and 0.7 per cent versus the euro.

The Swedish crown tracked these losses, but to a lesser extent, down 0.4 per cent&nbsp;versus the dollar&nbsp;and 0.7 per cent&nbsp;versus the euro.

Demand for safe-have currencies was relatively unchanged, with the Japanese yen up around 0.1 per cent&nbsp;against the dollar and the Swiss franc flat around 0.9905.

Minutes from the US&nbsp;federal reserve's FOMC meeting in October are due at 19.00 GMT. Analysts expect little impact.

The dollar rose on Wednesday and trade-exposed currencies fell after the US president threatened a trade war escalation and China condemned a US senate measure backing pro-democracy protesters in Hong Kong.

The dollar rose on Wednesday and trade-exposed currencies fell after the US president threatened a trade war escalation and China condemned a US senate measure backing pro-democracy protesters in Hong Kong. China's yuan slipped to a new two-week low in overnight trading after US President Donald Trump threatened to raise new tariffs on Chinese imports if ongoing trade negotiations fail. China condemned the US legislation aimed at protecting human rights in Hong Kong, saying that the US should stop interfering. After four days of falling, the dollar was up 0.1 per cent against both the euro and a basket of currencies. "Today the main focus is the trade talks between China and the US and we are seeing risk aversion," said Piotr Matys, currency strategist at Rabobank. Matys said that the US senate's bill in support of Hong Kong could complicate progress towards a preliminary trade deal. Markets had hoped that a partial trade deal to end the 16-month US-China trade war could be signed at a summit in Chile, which was scheduled for mid-November. The summit was cancelled, leaving the outlook for a deal unclear. Adam Cole, chief currency strategist at RBC Capital Markets said that a preliminary "phase one" trade deal could be reached by the end of the year. "The prospect of a broader more all-encompassing deal will drag on well into next year," he added. "The market is worrying (about) this sort of exogenous shock to the process by the build-up of tension in Hong Kong - I ultimately doubt that either side will allow that to delay the process," Cole said. The Canadian dollar fell against the US dollar to its lowest since October 11 after a speech by the Bank of Canada's senior deputy governor boosted the perceived likelihood of a rate cut. Trade-exposed currencies took a hit from the worsening US-China relations. The Australian and New Zealand dollars were both down 0.4 per cent versus the US dollar. The Norwegian crown was down 0.9 per cent versus the dollar and 0.7 per cent versus the euro. The Swedish crown tracked these losses, but to a lesser extent, down 0.4 per cent versus the dollar and 0.7 per cent versus the euro. Demand for safe-have currencies was relatively unchanged, with the Japanese yen up around 0.1 per cent against the dollar and the Swiss franc flat around 0.9905. Minutes from the US federal reserve's FOMC meeting in October are due at 19.00 GMT. Analysts expect little impact.

Dollar rises as US-China relations worsen over Hong Kong and tariffs

Several petrol stations in protest-hit Lebanon stopped services Saturday, as reserves ran dry due to a shortage of US dollars to pay suppliers, a syndicate head said.

The shuttering of petrol stations came as demonstrators again took to the street across the country, keeping up their three-week-long movement against a political class regarded as inefficient and corrupt.&nbsp;

"The petrol stations that opened today are the ones that still have reserves. They will close down as soon as supply runs out," said Sami Brax, the head of the Syndicate of Gas Station Owners.

He said if officials do not facilitate access to dollars by Tuesday, "we will be forced to stop imports and close down all petrol stations."

Petrol stations receive payment from customers in Lebanese pounds but have to pay importers and suppliers in dollars.&nbsp;

For two decades, the Lebanese pound has been pegged to the US dollar, with both currencies used interchangeably in daily life.

But banks have been reducing access to dollars since the end of the summer, following fears of a shortage in central bank dollar reserves.

In recent days, banks halted all ATM withdrawals in dollars and severely restricted conversions from Lebanese pounds.

Many Lebanese have had to instead buy dollars from money changers at a higher exchange rate, in what amounts to a de-facto devaluation of the local currency that has sparked price hikes.

The official exchange rate has remained fixed at 1,507 Lebanese pounds to the dollar, but the rate in the parallel market has surpassed 1,800.

"The banks are under pressure from people, both inside Lebanon and abroad," said economist Naseeb Ghabreel, after many rushed to withdraw their dollar savings or convert Lebanese pound accounts.

Since September, petrol station owners have accused banks of failing to provide them with the dollars they need and threatened strikes.&nbsp;

In response, the central bank last month pledged to facilitate access to the greenback for importers of petroleum products, wheat and medicine.

But the measure has not yet gone into effect.&nbsp;

Lebanon has since October 17 witnessed an unprecedented popular uprising against everything from power cuts and poor social security to alleged state corruption.

The government yielded to popular pressure and stepped down last month, with the World Bank urging for the quick formation of a new cabinet to prevent the economy from further deteriorating.

Several petrol stations in protest-hit Lebanon stopped services Saturday, as reserves ran dry due to a shortage of US dollars to pay suppliers, a syndicate head said.

Several petrol stations in protest-hit Lebanon stopped services Saturday, as reserves ran dry due to a shortage of US dollars to pay suppliers, a syndicate head said. The shuttering of petrol stations came as demonstrators again took to the street across the country, keeping up their three-week-long movement against a political class regarded as inefficient and corrupt. "The petrol stations that opened today are the ones that still have reserves. They will close down as soon as supply runs out," said Sami Brax, the head of the Syndicate of Gas Station Owners. He said if officials do not facilitate access to dollars by Tuesday, "we will be forced to stop imports and close down all petrol stations." Petrol stations receive payment from customers in Lebanese pounds but have to pay importers and suppliers in dollars. For two decades, the Lebanese pound has been pegged to the US dollar, with both currencies used interchangeably in daily life. But banks have been reducing access to dollars since the end of the summer, following fears of a shortage in central bank dollar reserves. In recent days, banks halted all ATM withdrawals in dollars and severely restricted conversions from Lebanese pounds. Many Lebanese have had to instead buy dollars from money changers at a higher exchange rate, in what amounts to a de-facto devaluation of the local currency that has sparked price hikes. The official exchange rate has remained fixed at 1,507 Lebanese pounds to the dollar, but the rate in the parallel market has surpassed 1,800. "The banks are under pressure from people, both inside Lebanon and abroad," said economist Naseeb Ghabreel, after many rushed to withdraw their dollar savings or convert Lebanese pound accounts. Since September, petrol station owners have accused banks of failing to provide them with the dollars they need and threatened strikes. In response, the central bank last month pledged to facilitate access to the greenback for importers of petroleum products, wheat and medicine. But the measure has not yet gone into effect. Lebanon has since October 17 witnessed an unprecedented popular uprising against everything from power cuts and poor social security to alleged state corruption. The government yielded to popular pressure and stepped down last month, with the World Bank urging for the quick formation of a new cabinet to prevent the economy from further deteriorating.

Petrol pumps shut down in protest-hit Lebanon over dollar shortage

The dollar rose on Friday after three straight days of losses, as investors took comfort in a US&nbsp;non-farm payrolls number which, while below the consensus forecast, was not as bad as the market initially feared.

The greenback hit session highs against the yen and euro following the jobs report, after trading lower for most of the session.

Data showed that US&nbsp;nonfarm payrolls increased by 136,000 jobs last month. August data was revised to show 168,000 jobs created instead of the previously reported 130,000 positions. Economists polled by Reuters had forecast payrolls would increase by 145,000 jobs in September.

The unemployment rate dropped to a near 50-year low of 3.5 per cent.

"Going into it and considering what we saw with the two ISM surveys, it could have been a lot worse. It's probably just right for the market and <a href="https://www.wionews.com/world/slower-us-job-growth-expected-but-enough-to-support-economy-247977">not as dire as many people expected</a>," said John Velis, global macro strategist, at BNY Mellon in New York.

"It doesn't mean that the economy and the jobs market are falling off a cliff. On the other hand, it's not strong enough that it's going to take out this additional Fed easing that has been priced into the curve the last few days."

A drop in US&nbsp;unemployment in September pushed traders of US&nbsp;short-term interest rate futures on Friday to pare bets the Federal Reserve will cut rates at both of its two upcoming meetings.

The jobs data was a big relief to dollar bulls after two weak reports that heightened US&nbsp;recession fears.

On Thursday, a survey from the US&nbsp;Institute for Supply Management (ISM) showed its non-manufacturing activity index falling to 52.6 in September, the lowest since August 2016 and down from 56.4 in August.

The <a href="https://www.wionews.com/business-economy/dollar-pinned-down-after-poor-us-manufacturing-data-pound-slips-253220">non-manufacturing data</a> came on the heels of ISM's survey on Tuesday on manufacturing that showed activity plunging to more than 10-year lows.

In morning trading, the dollar index &nbsp;was up 0.1 per cent&nbsp;at 98.933, rising slightly against the yen to 106.98 yen &lt;JPY=&gt;.

The euro was modestly higher though versus the dollar at $1.0973.&nbsp;

Elsewhere, the Australian dollar&nbsp;and the New Zealand dollar were off their highs after the US&nbsp;report.

The dollar rose on Friday after three straight days of losses, as investors took comfort in a US non-farm payrolls number which, while below the consensus forecast, was not as bad as the market initially feared.

The dollar rose on Friday after three straight days of losses, as investors took comfort in a US non-farm payrolls number which, while below the consensus forecast, was not as bad as the market initially feared. The greenback hit session highs against the yen and euro following the jobs report, after trading lower for most of the session. Data showed that US nonfarm payrolls increased by 136,000 jobs last month. August data was revised to show 168,000 jobs created instead of the previously reported 130,000 positions. Economists polled by Reuters had forecast payrolls would increase by 145,000 jobs in September. The unemployment rate dropped to a near 50-year low of 3.5 per cent. "Going into it and considering what we saw with the two ISM surveys, it could have been a lot worse. It's probably just right for the market and not as dire as many people expected," said John Velis, global macro strategist, at BNY Mellon in New York. "It doesn't mean that the economy and the jobs market are falling off a cliff. On the other hand, it's not strong enough that it's going to take out this additional Fed easing that has been priced into the curve the last few days." A drop in US unemployment in September pushed traders of US short-term interest rate futures on Friday to pare bets the Federal Reserve will cut rates at both of its two upcoming meetings. The jobs data was a big relief to dollar bulls after two weak reports that heightened US recession fears. On Thursday, a survey from the US Institute for Supply Management (ISM) showed its non-manufacturing activity index falling to 52.6 in September, the lowest since August 2016 and down from 56.4 in August. The non-manufacturing data came on the heels of ISM's survey on Tuesday on manufacturing that showed activity plunging to more than 10-year lows. In morning trading, the dollar index was up 0.1 per cent at 98.933, rising slightly against the yen to 106.98 yen <JPY=>. The euro was modestly higher though versus the dollar at $1.0973. Elsewhere, the Australian dollar and the New Zealand dollar were off their highs after the US report.

Dollar rises after US jobs come out better than worst expectations

Worries about a slowing US economy and the possibility of further interest rate cuts in the wake of weak US manufacturing data kept the dollar pinned down on Wednesday, as investors sought shelter elsewhere.

The greenback steadied or fell against most major currencies, after dropping from a two-year high overnight when data showed the US&nbsp;manufacturing activity contracted at the fastest pace in more than a decade in September.

The weak data "was a very big miss", said Westpac currency strategist Sean Callow in Sydney, adding that the market "went into it seemingly not ready for bad news."

"It's probably going to reverberate for a little bit longer," he said, and then investors would shift to jobs data due on Friday to seek a broader read on the health of the world's biggest economy.

The dollar eased slightly against the euro to $1.0933 per euro and gave ground to the Australian and New Zealand dollars, retracing a bit of the large gains it made against them on Tuesday.

The pound sank 0.2% against the dollar to $1.2280. It was headed back toward an almost one-month low plumbed overnight as traders are increasingly nervous about Britain crashing out of the European Union at the end of the month.

Prime Minister Boris Johnson will unveil his final Brexit offer to the European Union on Wednesday and make clear that Britain intends to leave the EU on October 31, no matter what.

The dollar also rose marginally against the yen, to 108.84 yen, but steadied against a basket of currencies at 99.159 while the manufacturing shock echoed through other markets, dragging bond yields and Asian stock markets lower.

The Institute for Supply Management had said its index of US factory activity fell to 47.8, the lowest reading since June 2009.

A figure below 50 signals the domestic factory sector is contracting. The reading is a bad omen for September U.S. labour figures due on Friday, BNY Mellon analysts said in a note, since moves are often correlated.

"This reinforces our view that while the Fed is still stubbornly clinging to its view that rates are currently appropriate. ..it will ultimately have to accept that the pillars of support - the labour market and the consumer - are weakening," the bank said.

The Australian dollar, which hit its lowest in a decade on Tuesday after the Reserve Bank of Australia (RBA) cut interest rates, bounced a little to $0.6716.

But few are expecting a sustained rise after the statement accompanying the rate cut left room for further easing.

"There are sufficient global risks to rattle AUD... sub-0.66 remains on the table," analysts at Mizuho Bank said in a note.

In offshore trade, the Chinese yuan was steady at 7.1466 per dollar, with trade subdued as Chinese markets are closed until Monday for public holidays.

Worries about a slowing US economy and the possibility of further interest rate cuts in the wake of weak US manufacturing data kept the dollar pinned down on Wednesday, as investors sought shelter elsewhere.

Worries about a slowing US economy and the possibility of further interest rate cuts in the wake of weak US manufacturing data kept the dollar pinned down on Wednesday, as investors sought shelter elsewhere. The greenback steadied or fell against most major currencies, after dropping from a two-year high overnight when data showed the US manufacturing activity contracted at the fastest pace in more than a decade in September. The weak data "was a very big miss", said Westpac currency strategist Sean Callow in Sydney, adding that the market "went into it seemingly not ready for bad news." "It's probably going to reverberate for a little bit longer," he said, and then investors would shift to jobs data due on Friday to seek a broader read on the health of the world's biggest economy. The dollar eased slightly against the euro to $1.0933 per euro and gave ground to the Australian and New Zealand dollars, retracing a bit of the large gains it made against them on Tuesday. The pound sank 0.2% against the dollar to $1.2280. It was headed back toward an almost one-month low plumbed overnight as traders are increasingly nervous about Britain crashing out of the European Union at the end of the month. Prime Minister Boris Johnson will unveil his final Brexit offer to the European Union on Wednesday and make clear that Britain intends to leave the EU on October 31, no matter what. The dollar also rose marginally against the yen, to 108.84 yen, but steadied against a basket of currencies at 99.159 while the manufacturing shock echoed through other markets, dragging bond yields and Asian stock markets lower. The Institute for Supply Management had said its index of US factory activity fell to 47.8, the lowest reading since June 2009. A figure below 50 signals the domestic factory sector is contracting. The reading is a bad omen for September U.S. labour figures due on Friday, BNY Mellon analysts said in a note, since moves are often correlated. "This reinforces our view that while the Fed is still stubbornly clinging to its view that rates are currently appropriate. ..it will ultimately have to accept that the pillars of support - the labour market and the consumer - are weakening," the bank said. The Australian dollar, which hit its lowest in a decade on Tuesday after the Reserve Bank of Australia (RBA) cut interest rates, bounced a little to $0.6716. But few are expecting a sustained rise after the statement accompanying the rate cut left room for further easing. "There are sufficient global risks to rattle AUD... sub-0.66 remains on the table," analysts at Mizuho Bank said in a note. In offshore trade, the Chinese yuan was steady at 7.1466 per dollar, with trade subdued as Chinese markets are closed until Monday for public holidays.

Dollar pinned down after poor US manufacturing data; pound slips

The <a href="https://www.wionews.com/business-economy/dollar-pinned-down-after-poor-us-manufacturing-data-pound-slips-253220">US&nbsp;dollar</a> edged higher on Wednesday after disappointing manufacturing data had whacked the greenback off two-year&nbsp;highs, while the euro clung to levels above $1.09.

The US&nbsp;manufacturing contracted at the fastest pace in more than a decade in September, making the United States the latest country to suffer a manufacturing downturn amid a trade war between Washington and <a href="https://www.wionews.com/videos/china-marks-70th-national-day-with-military-parade-253164">Beijing</a>.

Many analysts, however, say the setback for the dollar will likely prove temporary given its higher yield versus peers and the relative strength of the US&nbsp;economy,&nbsp;non-farm payrolls data due on Friday should give some more insight into the health of the US&nbsp;economy.

"Yes US&nbsp;manufacturing is disappointing but it's no more disappointing than the eurozone PMIs (Purchasing Managers' Index surveys) we saw," said Michael Hewson, an analyst at CMC Markets, referring to weak surveys in the euro area released this week.

Hewson said weakness in US&nbsp;manufacturing would have to spill over into the services sector before it had a significant impact on monetary policy and the outlook for the dollar.

Others differed. The manufacturing reading was a bad omen for September US&nbsp;labour figures due on Friday, BNY Mellon analysts said in a note since moves are often correlated.

"This reinforces our view that while the Fed is still stubbornly clinging to its view that rates are currently appropriate. It will ultimately have to accept that the pillars of support - the labour market and the consumer - are weakening," the bank said.

Even with more rate cuts, the dollar is still the highest-yielding currency among its developed market peers.

The dollar index inched 0.1 per cent&nbsp;higher to 99.242&nbsp;in early trade after hitting as high as 99.667 on Tuesday, a 29-month peak, before the manufacturing data was released.

The euro fell 0.1 per cent&nbsp;to $1.0921&nbsp;but was above its two-year low of $1.0879 touched on Tuesday.

The Japanese yen strengthened 0.2 per cent&nbsp;to 107.57, reflecting investor demand for safer assets after the US&nbsp;data heightened concerns about the health of the global economy.

The Swiss franc, another safe-haven currency, fell, however, by 0.3 per cent&nbsp;against the euro&nbsp;and 0.4 per cent&nbsp;against the dollar.

Elsewhere, the Australian dollar struggled around the $0.67&nbsp;mark but remained above its decade-low of $0.6672 hit on Tuesday after the <a href="https://www.wionews.com/world/australias-central-bank-cuts-rates-to-new-record-low-252964">Reserve Bank of Australia</a> cut rates to an all-time low.

The pound sank 0.3 per cent&nbsp;against the dollar to $1.2271&nbsp; and was headed back toward an almost one-month low plumbed overnight. Prime Minister Boris Johnson will unveil his final <a href="https://www.wionews.com/world/united-kingdom-prime-minister-boris-johnson-to-unveil-final-brexit-offer-to-european-union-253189">Brexit </a>offer to the European Union on Wednesday and make clear that Britain intends to leave the EU on October&nbsp;31, no matter what.

The US dollar edged higher on Wednesday after disappointing manufacturing data had whacked the greenback off two-year highs, while the euro clung to levels above $1.

The US dollar edged higher on Wednesday after disappointing manufacturing data had whacked the greenback off two-year highs, while the euro clung to levels above $1.09. The US manufacturing contracted at the fastest pace in more than a decade in September, making the United States the latest country to suffer a manufacturing downturn amid a trade war between Washington and Beijing. Many analysts, however, say the setback for the dollar will likely prove temporary given its higher yield versus peers and the relative strength of the US economy, non-farm payrolls data due on Friday should give some more insight into the health of the US economy. "Yes US manufacturing is disappointing but it's no more disappointing than the eurozone PMIs (Purchasing Managers' Index surveys) we saw," said Michael Hewson, an analyst at CMC Markets, referring to weak surveys in the euro area released this week. Hewson said weakness in US manufacturing would have to spill over into the services sector before it had a significant impact on monetary policy and the outlook for the dollar. Others differed. The manufacturing reading was a bad omen for September US labour figures due on Friday, BNY Mellon analysts said in a note since moves are often correlated. "This reinforces our view that while the Fed is still stubbornly clinging to its view that rates are currently appropriate. It will ultimately have to accept that the pillars of support - the labour market and the consumer - are weakening," the bank said. Even with more rate cuts, the dollar is still the highest-yielding currency among its developed market peers. The dollar index inched 0.1 per cent higher to 99.242 in early trade after hitting as high as 99.667 on Tuesday, a 29-month peak, before the manufacturing data was released. The euro fell 0.1 per cent to $1.0921 but was above its two-year low of $1.0879 touched on Tuesday. The Japanese yen strengthened 0.2 per cent to 107.57, reflecting investor demand for safer assets after the US data heightened concerns about the health of the global economy. The Swiss franc, another safe-haven currency, fell, however, by 0.3 per cent against the euro and 0.4 per cent against the dollar. Elsewhere, the Australian dollar struggled around the $0.67 mark but remained above its decade-low of $0.6672 hit on Tuesday after the Reserve Bank of Australia cut rates to an all-time low. The pound sank 0.3 per cent against the dollar to $1.2271 and was headed back toward an almost one-month low plumbed overnight. Prime Minister Boris Johnson will unveil his final Brexit offer to the European Union on Wednesday and make clear that Britain intends to leave the EU on October 31, no matter what.

Dollar steadies after data knocks it off two-year highs

Gold prices edged higher on Friday and are set for their first weekly gain in one month, supported by a softer Dollar and developments in the Sino-US&nbsp;trade talks.

Spot gold was up 0.3% at $1,503.20 per ounce, as of 03.53 GMT, and was on track for its first weekly gain, having risen nearly by 1% so far this week.

US&nbsp;gold futures were also up by 0.3% at $1,510.9 per ounce.

"A weaker US&nbsp;Dollar is giving gold a little bit of an upward drift", Michael McCarthy, Chief Market Strategist at CMC Markets said, adding that "prices are still very much in the middle of a trading range and pinned to $1,500 level".

The Dollar nursed losses against most major currencies on Friday, as central banks in Switzerland and the UK refrained from cutting rates, while risk appetite ebbed on caution about US-China trade talks.

"Investors are all waiting on any further developments in the trade negotiations as they move towards October meeting and that may provide [the] next big driver for gold prices," McCarthy said.

American and Chinese deputy trade negotiators resumed face-to-face talks for the first time in nearly two months on Thursday, trying to lay the groundwork for high-level talks in early October.

Gold prices have risen about 17% this year mainly on the back of the US-China trade tensions, concerns over the outlook for the global economy, and the prospect of monetary easing by central banks.

The Fed had cut interest rates for the second time this year on Wednesday to help sustain economic expansion but gave mixed signals on future rate cuts.

"The precious metal will remain supported as investors deliberate heightened market risks and accommodative economic policies for the near term", Phillip Futures' Analyst Benjamin Lu said in a note.

On the technical front, signals are mixed for spot gold as it is stuck in a narrow range of $1,488-$1,514 per ounce, according to Reuters' Technical Analyst Wang Tao.

Elsewhere, palladium gained 0.7% to $1,634.74 per ounce, having earlier climbed to a fresh record peak of $1,635.55.

Platinum rose by 0.5% to $942.00 per ounce and silver was up by 0.6% at $17.88.

Gold prices edged higher on Friday and are set for their first weekly gain in one month, supported by a softer Dollar and developments in the Sino-US trade talks.

Gold prices edged higher on Friday and are set for their first weekly gain in one month, supported by a softer Dollar and developments in the Sino-US trade talks. Spot gold was up 0.3% at $1,503.20 per ounce, as of 03.53 GMT, and was on track for its first weekly gain, having risen nearly by 1% so far this week. US gold futures were also up by 0.3% at $1,510.9 per ounce. "A weaker US Dollar is giving gold a little bit of an upward drift", Michael McCarthy, Chief Market Strategist at CMC Markets said, adding that "prices are still very much in the middle of a trading range and pinned to $1,500 level". The Dollar nursed losses against most major currencies on Friday, as central banks in Switzerland and the UK refrained from cutting rates, while risk appetite ebbed on caution about US-China trade talks. "Investors are all waiting on any further developments in the trade negotiations as they move towards October meeting and that may provide [the] next big driver for gold prices," McCarthy said. American and Chinese deputy trade negotiators resumed face-to-face talks for the first time in nearly two months on Thursday, trying to lay the groundwork for high-level talks in early October. Gold prices have risen about 17% this year mainly on the back of the US-China trade tensions, concerns over the outlook for the global economy, and the prospect of monetary easing by central banks. The Fed had cut interest rates for the second time this year on Wednesday to help sustain economic expansion but gave mixed signals on future rate cuts. "The precious metal will remain supported as investors deliberate heightened market risks and accommodative economic policies for the near term", Phillip Futures' Analyst Benjamin Lu said in a note. On the technical front, signals are mixed for spot gold as it is stuck in a narrow range of $1,488-$1,514 per ounce, according to Reuters' Technical Analyst Wang Tao. Elsewhere, palladium gained 0.7% to $1,634.74 per ounce, having earlier climbed to a fresh record peak of $1,635.55. Platinum rose by 0.5% to $942.00 per ounce and silver was up by 0.6% at $17.88.

Gold set for first weekly gain in a month

The safe-haven dollar and yen fell on Wednesday as risk sentiment improved after global political worries eased with what markets perceived as positive news in <a href="https://www.wionews.com/world/hong-kong-leader-carrie-lam-announces-withdrawal-of-extradition-bill-report-247563">Hong Kong</a>, Italy and Britain.

The dollar index slid for a second straight session, while the yen, which draws safe-haven bids in times of geopolitical stress, dropped for the first time in four days against the greenback.

Risk appetite rose on reports Hong Kong leader Carrie Lam would announce the formal withdrawal of an extradition bill that triggered months of unrest.

In Italy, the 5-Star Movement approved a coalition deal with the Democratic Party, paving the way for a new government, while lawmakers opposed to a no-deal Brexit gained the upper hand in Britain, triggering a global equities rally.

Edward Moya, senior market analyst at OANDA in New York, said the dollar's weakness was triggered by this "risk-on move in Hong Kong that gave Hong Kong equities one of the best moves in a few years." That has boosted appetite for riskier currencies that have generally higher yields, he added.

"Everyone has been waiting for this major dollar reversal for quite some time. It has never come to fruition," Moya said. "This is providing a little bit of unwinding of some dollar bullish positions."

In mid-morning trading, the dollar was last down 0.4 per cent against a basket of major currencies, at 98.656.

The yen fell against the dollar, which rose 0.3 per cent to 106.27 yen. It also declined against the euro, which gained 0.7 per cent&nbsp;to 117.045 yen.

The euro also rose 0.4 per cent versus the dollar to $1.1011 after comments from Christine Lagarde, who will likely be the European Central Bank's next president, introduced some doubt over the scale of an ECB stimulus package expected next week.

Lagarde said highly accommodative monetary policy for a prolonged period was necessary but she added that the bank needed to be mindful of the negative side-effects of such tools.

Expectations for an interest cut, the relaunch of asset purchases and other ECB measures to stimulate the economy have weighed on the euro. On Tuesday, it hit a 28-month low around $1.0924.

The dollar's weakness helped China's offshore yuan pull away further from record lows plumbed earlier this week. The Chinese currency was last up 0.4 per cent&nbsp;against the dollar, which fell to 7.1511 yuan.

The British pound recovered Tuesday's losses, when it hit a three-year low, after the latest parliamentary attempt to stop a no-deal Brexit took a step forward.

Sterling bounced 0.9 per cent&nbsp;to $1.2185 , and against the euro it rallied 0.4 per cent&nbsp;to 90.45 pence.

Lawmakers who defeated Prime Minister Boris Johnson's government on a crucial motion late on Tuesday are expected to introduce a bill in parliament seeking to stop Britain from leaving the European Union on Oct. 31 without transitional arrangements.

The safe-haven dollar and yen fell on Wednesday as risk sentiment improved after global political worries eased with what markets perceived as positive news in Hong Kong, Italy and Britain.

The safe-haven dollar and yen fell on Wednesday as risk sentiment improved after global political worries eased with what markets perceived as positive news in Hong Kong, Italy and Britain. The dollar index slid for a second straight session, while the yen, which draws safe-haven bids in times of geopolitical stress, dropped for the first time in four days against the greenback. Risk appetite rose on reports Hong Kong leader Carrie Lam would announce the formal withdrawal of an extradition bill that triggered months of unrest. In Italy, the 5-Star Movement approved a coalition deal with the Democratic Party, paving the way for a new government, while lawmakers opposed to a no-deal Brexit gained the upper hand in Britain, triggering a global equities rally. Edward Moya, senior market analyst at OANDA in New York, said the dollar's weakness was triggered by this "risk-on move in Hong Kong that gave Hong Kong equities one of the best moves in a few years." That has boosted appetite for riskier currencies that have generally higher yields, he added. "Everyone has been waiting for this major dollar reversal for quite some time. It has never come to fruition," Moya said. "This is providing a little bit of unwinding of some dollar bullish positions." In mid-morning trading, the dollar was last down 0.4 per cent against a basket of major currencies, at 98.656. The yen fell against the dollar, which rose 0.3 per cent to 106.27 yen. It also declined against the euro, which gained 0.7 per cent to 117.045 yen. The euro also rose 0.4 per cent versus the dollar to $1.1011 after comments from Christine Lagarde, who will likely be the European Central Bank's next president, introduced some doubt over the scale of an ECB stimulus package expected next week. Lagarde said highly accommodative monetary policy for a prolonged period was necessary but she added that the bank needed to be mindful of the negative side-effects of such tools. Expectations for an interest cut, the relaunch of asset purchases and other ECB measures to stimulate the economy have weighed on the euro. On Tuesday, it hit a 28-month low around $1.0924. The dollar's weakness helped China's offshore yuan pull away further from record lows plumbed earlier this week. The Chinese currency was last up 0.4 per cent against the dollar, which fell to 7.1511 yuan. The British pound recovered Tuesday's losses, when it hit a three-year low, after the latest parliamentary attempt to stop a no-deal Brexit took a step forward. Sterling bounced 0.9 per cent to $1.2185 , and against the euro it rallied 0.4 per cent to 90.45 pence. Lawmakers who defeated Prime Minister Boris Johnson's government on a crucial motion late on Tuesday are expected to introduce a bill in parliament seeking to stop Britain from leaving the European Union on Oct. 31 without transitional arrangements.

Dollar, yen fall as global tensions ease

China's currency on Monday slid to its lowest point in more than 11 years as concerns over the US trade war and the potential for global recession weighed on markets.

The onshore yuan fell to 7.1487 to the US dollar, its weakest point since early 2008, in Asian trading.

Global economic tensions have intensified in recent days with the US and China raising tariffs on each other's imports, and President Donald Trump calling on US businesses to pull out of China.

The yuan is not freely convertible and the Chinese government limits its movement against the dollar to a two per cent range on either side of a figure that the central bank sets each day to reflect market trends and control volatility.

The People's Bank of China has set that rate steadily weaker in recent weeks and set it on Monday at 7.057 to the dollar.

Allowing the yuan to depreciate makes Chinese exports cheaper and offsets some of the burden of punitive US tariffs.

The yuan breached the key 7.0 threshold against the dollar earlier in August, days after the US announced plans to impose fresh tariffs on Chinese imports from September 1.

The plunge past 7.0 prompted Washington to officially brand Beijing a "currency manipulator".

China's central bank has "resolutely opposed" the label.

China's currency on Monday slid to its lowest point in more than 11 years as concerns over the US trade war and the potential for global recession weighed on markets.

China's currency on Monday slid to its lowest point in more than 11 years as concerns over the US trade war and the potential for global recession weighed on markets. The onshore yuan fell to 7.1487 to the US dollar, its weakest point since early 2008, in Asian trading. Global economic tensions have intensified in recent days with the US and China raising tariffs on each other's imports, and President Donald Trump calling on US businesses to pull out of China. The yuan is not freely convertible and the Chinese government limits its movement against the dollar to a two per cent range on either side of a figure that the central bank sets each day to reflect market trends and control volatility. The People's Bank of China has set that rate steadily weaker in recent weeks and set it on Monday at 7.057 to the dollar. Allowing the yuan to depreciate makes Chinese exports cheaper and offsets some of the burden of punitive US tariffs. The yuan breached the key 7.0 threshold against the dollar earlier in August, days after the US announced plans to impose fresh tariffs on Chinese imports from September 1. The plunge past 7.0 prompted Washington to officially brand Beijing a "currency manipulator". China's central bank has "resolutely opposed" the label.

China's yuan sinks to lowest in 11 years amid trade tension with US

The rupee fell to its lowest in more than eight months on Friday morning tracking weakness in other regional currencies, while concerns over flagging domestic growth also weighed on sentiment.

Foreign portfolio outflows from the equity markets are also hurting the rupee.&nbsp;

By 0352 GMT, the partially convertible rupee was trading at 72.04/05 per dollar, its weakest level since December&nbsp;14.

Almost all Asian currencies were trading weaker against the dollar.&nbsp;

The rupee fell to its lowest in more than eight months on Friday morning tracking weakness in other regional currencies, while concerns over flagging domestic growth also weighed on sentiment.

The rupee fell to its lowest in more than eight months on Friday morning tracking weakness in other regional currencies, while concerns over flagging domestic growth also weighed on sentiment. Foreign portfolio outflows from the equity markets are also hurting the rupee. By 0352 GMT, the partially convertible rupee was trading at 72.04/05 per dollar, its weakest level since December 14. Almost all Asian currencies were trading weaker against the dollar.

Rupee hits 72 per dollar, weakest level since mid-December

<a href="https://www.wionews.com/world/singapore-to-raise-retirement-age-to-65-years-prime-minister-243941">Singapore</a>'s core inflation eased to its slowest pace in more than three years in July, data showed on Friday, prompting authorities to downgrade their full-year forecast amid firming bets for monetary policy easing.

The core inflation gauge rose 0.8 per cent from a year earlier, the slowest rate since April 2016, weighed down by declines in utilities and retail prices.

That was lower than a 1.0 per cent forecast in a Reuters poll and a 1.2 per cent&nbsp;increase in the previous month.

Authorities said they expected core inflation - the preferred price gauge of the central bank which is due to meet in October - to be in the lower half of their 1 per cent-2 per cent&nbsp;forecast for 2019, having previously said it would come in the middle.

The 1 per cent-2 per cent&nbsp;forecast range remains in place.

"This is further evidence of the weakened condition of the economy," said Steve Cochrane, chief APAC economist at Moody's Analytics.

"This will likely raise expectations of monetary policy easing... Particularly as many central banks in the region have already begun to ease monetary policy."

The Monetary Authority of Singapore (MAS) said last week, after the city-state slashed its full-year growth forecast, that it was not considering an out-of-cycle policy move.

The Singapore dollar weakened after the data release and was down around 0.2 per cent&nbsp;against the US dollar on the day.

The headline consumer price index in July rose 0.4 per cent&nbsp;year-on-year, matching January's figures, the lowest so far in 2019. The poll had called for a 0.55 per cent&nbsp;rise, compared with a 0.6 per cent&nbsp;increase a month earlier.

Singapore's headline rate is expected to average 0.5 per cent-1.5 per cent&nbsp;for the full year, MAS and Singapore's trade ministry said in a joint statement on Friday.

"An acceleration in inflationary pressures is unlikely against the backdrop of slower GDP growth, uncertainties in the global economy, as well as the continuing restraining effects of MAS' monetary policy tightening in 2018," the authorities said.

Singapore's core inflation eased to its slowest pace in more than three years in July, data showed on Friday, prompting authorities to downgrade their full-year forecast amid firming bets for monetary policy easing.

Singapore's core inflation eased to its slowest pace in more than three years in July, data showed on Friday, prompting authorities to downgrade their full-year forecast amid firming bets for monetary policy easing. The core inflation gauge rose 0.8 per cent from a year earlier, the slowest rate since April 2016, weighed down by declines in utilities and retail prices. That was lower than a 1.0 per cent forecast in a Reuters poll and a 1.2 per cent increase in the previous month. Authorities said they expected core inflation - the preferred price gauge of the central bank which is due to meet in October - to be in the lower half of their 1 per cent-2 per cent forecast for 2019, having previously said it would come in the middle. The 1 per cent-2 per cent forecast range remains in place. "This is further evidence of the weakened condition of the economy," said Steve Cochrane, chief APAC economist at Moody's Analytics. "This will likely raise expectations of monetary policy easing... Particularly as many central banks in the region have already begun to ease monetary policy." The Monetary Authority of Singapore (MAS) said last week, after the city-state slashed its full-year growth forecast, that it was not considering an out-of-cycle policy move. The Singapore dollar weakened after the data release and was down around 0.2 per cent against the US dollar on the day. The headline consumer price index in July rose 0.4 per cent year-on-year, matching January's figures, the lowest so far in 2019. The poll had called for a 0.55 per cent rise, compared with a 0.6 per cent increase a month earlier. Singapore's headline rate is expected to average 0.5 per cent-1.5 per cent for the full year, MAS and Singapore's trade ministry said in a joint statement on Friday. "An acceleration in inflationary pressures is unlikely against the backdrop of slower GDP growth, uncertainties in the global economy, as well as the continuing restraining effects of MAS' monetary policy tightening in 2018," the authorities said.

Singapore cuts 2019 core inflation forecast as prices hit a 3-year low

Manicured children strut down the catwalk at<a href="https://www.wionews.com/world/beijings-new-multi-billion-dollar-starfish-airport-set-to-open-in-september-231977"> a Beijing</a> fashion show, one of the thousands of events driving huge demand for child models in China that insiders warn leaves minors vulnerable to physical abuse, 12 hour days and unrelenting pressure from pushy parents.

The kid's apparel market is growing faster than any other clothing sector in the country and was worth more than $40.5 billion in 2018 according to Euromonitor.&nbsp;

This combined with the rise of "kidfluencers" sponsored by brands to promote products on social media is spurring greater demand for young models but experts warn of the heavy cost of pursuing such deals.&nbsp;&nbsp;

"If children don't listen to the parents then I think hitting them is quite standard," Lee Ku, founder of Le Show Stars modelling school, told AFP.

A video of a mother kicking her three-year-old daughter in fury at her failure to comply during a modelling job went viral earlier this year, causing outrage online.

And footage emerged in early August online of a young boy modelling thick winter clothes outside as temperatures soared to 37 degrees Celsius, also drawing heavy online criticism.&nbsp;

But in an industry where minors can earn 10,000 yuan ($1,450)a session, Lee says the clip is the tip of the iceberg and that from his experience, such violent behaviour from parents was not unusual on shoots.

Child models sometimes go through more than 100 outfit changes in a session, often working from morning till night.&nbsp;

But mental health experts warn it is not just physical exhaustion they have to contend with there may be long term emotional implications.&nbsp;

"Children from the age of zero to six are mentally developing, they need a lot of exploration and freedom," explained child psychologist Gong Xueping.

"At work, the child model will deliberately show a lot of different expressions... but this is contrary to the child's feelings of the moment. This limits the development of both emotional abilities and more complex psychological abilities for children, so I think it's a very bad choice," Gong added.&nbsp;

Hundreds of competitions

But there remains no shortage of parents interested in pushing their children into the profession.

Founded three years ago, Le Show Stars was one of the first modelling schools in Beijing, where customers pay up to 800 yuan for private one on one lessons.

Four-year-old twins Yumi and Yuki Xiao are not yet professional models but for nearly two years they have been taking classes where they are taught how to pose and pace the catwalk in the hopes that they can break into the industry.

"For some catwalking competitions, they have to be in the makeup room by 6 am," their father Xiao Liang said.&nbsp;

"The real competition starts at 2 pm, and they finish around 3 pm or 4. So the whole thing takes a whole day. From 6 am to 6 pm, 12 hours is pretty standard."

Their parents invest in taking them around the country to compete in hundreds of national child modelling competitions.&nbsp;

"It's a lot of fun I like being on stage," insisted Yumi.

Like many other parents, Xiao says he initially enrolled the two in child modelling to build their self-confidence, but after Yumi and Yuki showed interest they started to invest more time and money into building a possible child modelling career path for them.

Occasionally the twins are paid to model seasonal fashion lines for big brands.

"I think they are one of a kind, firstly, they're twins, and they're also boy-girl twins," father Xiao says proudly.&nbsp;

"They also like it, which is why we are giving them this opportunity. I think they have a natural advantage over other kids," he added.&nbsp;

'Lost childhoods'

<a href="https://www.wionews.com/world/chinese-human-rights-lawyer-lands-in-us-despite-travel-ban-240624">China's laws</a> around child labour are complicated and parents of underage models are sometimes paid in secret to sidestep the red tape required to employ them.&nbsp;

Responding to the kicking video, Hangzhou authorities introduced regulations to limit the hour's children's work and ban children under 10 from being brand spokespeople.&nbsp;

But many feel authorities are doing too little to protect kids from exploitation.&nbsp;

More than 110 child retailers on e-commerce giant Taobao said they would scale back the use of young models, and also demanded more regulations.

Thousands have debated the topic online, calling for rules to be tightened to prevent abuse.&nbsp;

"To me, child models are nothing different from child labour. They have to finish their work no matter how tired they are when other children are playing and their short childhoods are lost making money for their parents. I suggest that we step up legislation...to protect their rights and interests," one Weibo user said.

Another commented some parents see their offspring only as a "money-making tool" adding: "The only way is to strengthen regulation, supervision, and protection."

Xiao and his wife Bai Yu said they were aware of the potential pitfalls of the profession and any decision to pursue the profession would be up to their son and daughter.&nbsp;

He said: "If they study well and they are interested in the prospect (of being a model), then I am sure to be 100 per cent supportive, as long as they are willing to spend their energy in this area." 
&nbsp;

Manicured children strut down the catwalk at a Beijing fashion show, one of the thousands of events driving huge demand for child models in China that insiders warn leaves minors vulnerable to physical abuse, 12 hour days and unrelenting pressure from pushy parents.

Manicured children strut down the catwalk at a Beijing fashion show, one of the thousands of events driving huge demand for child models in China that insiders warn leaves minors vulnerable to physical abuse, 12 hour days and unrelenting pressure from pushy parents. The kid's apparel market is growing faster than any other clothing sector in the country and was worth more than $40.5 billion in 2018 according to Euromonitor. This combined with the rise of "kidfluencers" sponsored by brands to promote products on social media is spurring greater demand for young models but experts warn of the heavy cost of pursuing such deals. "If children don't listen to the parents then I think hitting them is quite standard," Lee Ku, founder of Le Show Stars modelling school, told AFP. A video of a mother kicking her three-year-old daughter in fury at her failure to comply during a modelling job went viral earlier this year, causing outrage online. And footage emerged in early August online of a young boy modelling thick winter clothes outside as temperatures soared to 37 degrees Celsius, also drawing heavy online criticism. But in an industry where minors can earn 10,000 yuan ($1,450)a session, Lee says the clip is the tip of the iceberg and that from his experience, such violent behaviour from parents was not unusual on shoots. Child models sometimes go through more than 100 outfit changes in a session, often working from morning till night. But mental health experts warn it is not just physical exhaustion they have to contend with there may be long term emotional implications. "Children from the age of zero to six are mentally developing, they need a lot of exploration and freedom," explained child psychologist Gong Xueping. "At work, the child model will deliberately show a lot of different expressions... but this is contrary to the child's feelings of the moment. This limits the development of both emotional abilities and more complex psychological abilities for children, so I think it's a very bad choice," Gong added. Hundreds of competitions But there remains no shortage of parents interested in pushing their children into the profession. Founded three years ago, Le Show Stars was one of the first modelling schools in Beijing, where customers pay up to 800 yuan for private one on one lessons. Four-year-old twins Yumi and Yuki Xiao are not yet professional models but for nearly two years they have been taking classes where they are taught how to pose and pace the catwalk in the hopes that they can break into the industry. "For some catwalking competitions, they have to be in the makeup room by 6 am," their father Xiao Liang said. "The real competition starts at 2 pm, and they finish around 3 pm or 4. So the whole thing takes a whole day. From 6 am to 6 pm, 12 hours is pretty standard." Their parents invest in taking them around the country to compete in hundreds of national child modelling competitions. "It's a lot of fun I like being on stage," insisted Yumi. Like many other parents, Xiao says he initially enrolled the two in child modelling to build their self-confidence, but after Yumi and Yuki showed interest they started to invest more time and money into building a possible child modelling career path for them. Occasionally the twins are paid to model seasonal fashion lines for big brands. "I think they are one of a kind, firstly, they're twins, and they're also boy-girl twins," father Xiao says proudly. "They also like it, which is why we are giving them this opportunity. I think they have a natural advantage over other kids," he added. 'Lost childhoods' China's laws around child labour are complicated and parents of underage models are sometimes paid in secret to sidestep the red tape required to employ them. Responding to the kicking video, Hangzhou authorities introduced regulations to limit the hour's children's work and ban children under 10 from being brand spokespeople. But many feel authorities are doing too little to protect kids from exploitation. More than 110 child retailers on e-commerce giant Taobao said they would scale back the use of young models, and also demanded more regulations. Thousands have debated the topic online, calling for rules to be tightened to prevent abuse. "To me, child models are nothing different from child labour. They have to finish their work no matter how tired they are when other children are playing and their short childhoods are lost making money for their parents. I suggest that we step up legislation...to protect their rights and interests," one Weibo user said. Another commented some parents see their offspring only as a "money-making tool" adding: "The only way is to strengthen regulation, supervision, and protection." Xiao and his wife Bai Yu said they were aware of the potential pitfalls of the profession and any decision to pursue the profession would be up to their son and daughter. He said: "If they study well and they are interested in the prospect (of being a model), then I am sure to be 100 per cent supportive, as long as they are willing to spend their energy in this area."

China's child modelling industry booms amid controversy

<a href="https://www.wionews.com/business-economy/chinas-debt-tops-300-of-gdp-now-15-of-global-total-institute-of-international-finance-237113">The Chinese yuan</a> fell to its lowest level against the dollar since August 2010 in morning trade on Monday, fuelling speculation that Beijing is allowing currency depreciation to counter threatened US tariffs.

The offshore currency weakened to 7.1085 to the dollar, days after US President Donald Trump announced a plan to impose fresh tariffs on another $300 billion <a href="https://www.wionews.com/world/us-to-hit-300-billion-worth-of-chinese-goods-with-10-tariff-donald-trump-240021">in Chinese goods</a>, sharpening trade war tensions between the world's two biggest economies.

The onshore yuan also tumbled, hitting 7.0307 in Monday morning trade to reach its lowest level since 2008.

Both the onshore and offshore yuan breached the 7.0 level against the dollar, which investors see as a key threshold in currency value.

Trump has frequently accused China of artificially devaluing its currency to support its exports charges long denied by Beijing.

The US president jolted global stock markets last week when he issued the threat of more tariffs just a day after US and Chinese trade negotiators revived talks aimed at ending the year-long dispute.

The extra 10 per cent duties Trump threatened to implement from September 1 would mean he has now targeted virtually all of the $500 billion in goods America buys from China every year.

Currency instability

China on Friday threatened to retaliate to any new US tariffs it has already imposed its duties on $110 billion in American goods, almost all of the products it imports from the country.

A report from Bloomberg News said China has also asked its state-owned enterprises to stop buying US farm goods, in a further sign of escalating tensions.

The yuan is not freely convertible and the government limits its movement against the US dollar to a two per cent range on either side of a central parity rate which the People's Bank of China (PBOC) sets each day to reflect the market trends and control volatility.

The daily central rate was at 6.9225 per dollar on Monday, 0.33 per cent weaker from Friday.

"It appears that the tariffs hike suggests the return of tit for tat moves and a suspension of trade talks, and the PBOC sees no need to keep the yuan stable in the near term," Ken Cheung, a senior currency strategist at Mizuho Bank, told Bloomberg News.

In a statement Monday morning, the PBOC said the exchange rate against the US dollar had been "affected by unilateralism and trade protectionism measures and the imposition of tariff increases on China".

The central bank said the yuan remained "stable and strong against the basket of currencies" and said it would "resolutely crack down on short term speculation and maintain stable operation of the foreign exchange market and stabilize market expectations".

It went on to say that it had the "experience, confidence and ability to keep the RMB exchange rate stable at a reasonable and balanced level".

Julian Evans-Pritchard, a senior China economist with Capital Economics, said the PBOC has "effectively weaponized the exchange rate" by linking the currency with the US trade war.

"Given that their goal is presumably to offset some of the impacts from additional US tariffs, they are likely to allow the currency to weaken further, probably by 5-10 per cent over the coming quarters," said Evans-Pritchard.

The Chinese yuan fell to its lowest level against the dollar since August 2010 in morning trade on Monday, fuelling speculation that Beijing is allowing currency depreciation to counter threatened US tariffs.

The Chinese yuan fell to its lowest level against the dollar since August 2010 in morning trade on Monday, fuelling speculation that Beijing is allowing currency depreciation to counter threatened US tariffs. The offshore currency weakened to 7.1085 to the dollar, days after US President Donald Trump announced a plan to impose fresh tariffs on another $300 billion in Chinese goods, sharpening trade war tensions between the world's two biggest economies. The onshore yuan also tumbled, hitting 7.0307 in Monday morning trade to reach its lowest level since 2008. Both the onshore and offshore yuan breached the 7.0 level against the dollar, which investors see as a key threshold in currency value. Trump has frequently accused China of artificially devaluing its currency to support its exports charges long denied by Beijing. The US president jolted global stock markets last week when he issued the threat of more tariffs just a day after US and Chinese trade negotiators revived talks aimed at ending the year-long dispute. The extra 10 per cent duties Trump threatened to implement from September 1 would mean he has now targeted virtually all of the $500 billion in goods America buys from China every year. Currency instability China on Friday threatened to retaliate to any new US tariffs it has already imposed its duties on $110 billion in American goods, almost all of the products it imports from the country. A report from Bloomberg News said China has also asked its state-owned enterprises to stop buying US farm goods, in a further sign of escalating tensions. The yuan is not freely convertible and the government limits its movement against the US dollar to a two per cent range on either side of a central parity rate which the People's Bank of China (PBOC) sets each day to reflect the market trends and control volatility. The daily central rate was at 6.9225 per dollar on Monday, 0.33 per cent weaker from Friday. "It appears that the tariffs hike suggests the return of tit for tat moves and a suspension of trade talks, and the PBOC sees no need to keep the yuan stable in the near term," Ken Cheung, a senior currency strategist at Mizuho Bank, told Bloomberg News. In a statement Monday morning, the PBOC said the exchange rate against the US dollar had been "affected by unilateralism and trade protectionism measures and the imposition of tariff increases on China". The central bank said the yuan remained "stable and strong against the basket of currencies" and said it would "resolutely crack down on short term speculation and maintain stable operation of the foreign exchange market and stabilize market expectations". It went on to say that it had the "experience, confidence and ability to keep the RMB exchange rate stable at a reasonable and balanced level". Julian Evans-Pritchard, a senior China economist with Capital Economics, said the PBOC has "effectively weaponized the exchange rate" by linking the currency with the US trade war. "Given that their goal is presumably to offset some of the impacts from additional US tariffs, they are likely to allow the currency to weaken further, probably by 5-10 per cent over the coming quarters," said Evans-Pritchard.

Chinese yuan falls to weakest level against the dollar since 2010

Global shares steadied on Monday and the dollar hit a two-month high against a basket of currencies as markets counted down to a likely cut in US interest rates this week, with much riding on whether the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/asian-shares-drift-into-trade-talks-fed-test-239118&amp;sa=U&amp;ved=2ahUKEwiskeK2ktrjAhVFsY8KHaKRDH0QFjABegQIDBAC&amp;usg=AOvVaw007h4SGYlL7z1dT2b0Kwqf">Federal Reserve</a>&nbsp;signals more cuts will follow.

After opening lower, European shares began to gain. Deal-making and a rally in defensive sectors pushed the pan-European STOXX 600 index up 0.3%.

The dollar index - which measures it against a basket of peers - was higher by 0.1% and at its highest since May 31.

A stronger-than-expected US gross domestic product report on Friday gave the dollar wings, leading some investors to doubt whether the Fed will continue easing this year after its Wednesday meeting.

Interest rate futures are fully priced for a quarter-point rate cut from the Fed on Wednesday, with only a small chance of a half-point move.

More important will be what the central bank flags for the future, given the market implies 100 basis points of easing over the next year or so.

MSCI's All-Country World Index of stocks, down by as much as 0.2% on the day, erased some losses to trade 0.02% lower. Wall Street futures were flat.

"Central banks are very much the focus of attention for markets at the moment," said Rupert Thompson, head of research at Kingswood.

Investors were also keeping an eye on US-China trade talks. US and Chinese negotiators meet in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations for a breakthrough are low.

Data on the weekend showed profits earned by China's industrial firms contracted in June, fuelling concerns that the trade war will drag on economic growth.

"Both parties know they are running out of time to prevent a sharper slowdown in the global economy. However, given the past experiences, investor sentiment isn’t too high," said Hussein Sayed, chief market strategist at FXTM.

"While resolving their core issues seems far from reach at this stage, especially when it comes to China's subsidies and technology transfers, markets need at least a sign of goodwill to prevent a sharp, volatile reaction..."

In Asia, MSCI's broadest index of Asia-Pacific shares was half a per cent lower. Japan's Nikkei dipped 0.2% and Shanghai blue chips 0.1%.

In bonds, eurozone bond yields dipped as jittery investors eyed the trade talks and waited for the likely Fed rate cut after the European Central Bank's dovish signalling last week disappointed some.

The benchmark German 10-year Bund yield fell more than 1 basis point to -0.3920%, not far from last week's record low of -0.422%.

Elsewhere in currencies, <a href="https://www.wionews.com/world/uk-plays-brexit-hardball-with-stubborn-european-union-pound-falls-to-a-two-year-low-239235">sterling fell</a> over half a per cent to a 28-month low of $1.2301 amid reports the government of Prime Minister Boris Johnson was preparing the ground for a "no-deal" Brexit.

Global shares steadied on Monday and the dollar hit a two-month high against a basket of currencies as markets counted down to a likely cut in US interest rates this week, with much riding on whether the Federal Reserve signals more cuts will follow.

Global shares steadied on Monday and the dollar hit a two-month high against a basket of currencies as markets counted down to a likely cut in US interest rates this week, with much riding on whether the Federal Reserve signals more cuts will follow. After opening lower, European shares began to gain. Deal-making and a rally in defensive sectors pushed the pan-European STOXX 600 index up 0.3%. The dollar index - which measures it against a basket of peers - was higher by 0.1% and at its highest since May 31. A stronger-than-expected US gross domestic product report on Friday gave the dollar wings, leading some investors to doubt whether the Fed will continue easing this year after its Wednesday meeting. Interest rate futures are fully priced for a quarter-point rate cut from the Fed on Wednesday, with only a small chance of a half-point move. More important will be what the central bank flags for the future, given the market implies 100 basis points of easing over the next year or so. MSCI's All-Country World Index of stocks, down by as much as 0.2% on the day, erased some losses to trade 0.02% lower. Wall Street futures were flat. "Central banks are very much the focus of attention for markets at the moment," said Rupert Thompson, head of research at Kingswood. Investors were also keeping an eye on US-China trade talks. US and Chinese negotiators meet in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations for a breakthrough are low. Data on the weekend showed profits earned by China's industrial firms contracted in June, fuelling concerns that the trade war will drag on economic growth. "Both parties know they are running out of time to prevent a sharper slowdown in the global economy. However, given the past experiences, investor sentiment isn’t too high," said Hussein Sayed, chief market strategist at FXTM. "While resolving their core issues seems far from reach at this stage, especially when it comes to China's subsidies and technology transfers, markets need at least a sign of goodwill to prevent a sharp, volatile reaction..." In Asia, MSCI's broadest index of Asia-Pacific shares was half a per cent lower. Japan's Nikkei dipped 0.2% and Shanghai blue chips 0.1%. In bonds, eurozone bond yields dipped as jittery investors eyed the trade talks and waited for the likely Fed rate cut after the European Central Bank's dovish signalling last week disappointed some. The benchmark German 10-year Bund yield fell more than 1 basis point to -0.3920%, not far from last week's record low of -0.422%. Elsewhere in currencies, sterling fell over half a per cent to a 28-month low of $1.2301 amid reports the government of Prime Minister Boris Johnson was preparing the ground for a "no-deal" Brexit.

Shares steady as Fed comes into focus; dollar at two-month high

Global&nbsp;stocks&nbsp;rose on Friday as investors firmed up&nbsp;bets&nbsp;on a US interest&nbsp;rate&nbsp;cut&nbsp;at the end of July after a speech by a top&nbsp;<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/us-lamakers-propose-barring-big-tech-companies-from-offering-financial-services-digital-currencies-236125&amp;sa=U&amp;ved=2ahUKEwivgZmF9MDjAhUD73MBHf2NCOoQFjAGegQIBBAC&amp;usg=AOvVaw0Czkc6147wnx7-a0sTCHUs">Federal Reserve</a> official further cemented expectations for one, fuelling appetite for risky assets and capping the&nbsp;dollar.

European shares opened higher across the board, with the pan-European STOXX 600 index gaining 0.7% in early trade. Britain's FTSE 100 index gained 0.6% and Germany's DAX rose 0.75%.

In oil&nbsp;markets, crude surged after the United States said its navy had destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for&nbsp;global&nbsp;crude flows, raising concerns about supply disruptions out of the region.

Iran said all its drones had returned safely to base, and there was no sign of a major escalation in the Gulf.

Comments by New York&nbsp;Fed&nbsp;President John Williams on Thursday made it virtually certain, in the&nbsp;markets' view, that the&nbsp;Fed&nbsp;would&nbsp;cut&nbsp;interest&nbsp;rates by at least 25 basis points at its July 30-31 policy meeting and also revived expectations of an even deeper 50 bps reduction.

Financial&nbsp;markets&nbsp;reacted quickly, with&nbsp;Fed&nbsp;fund&nbsp;rate&nbsp;futures at one point pricing in an almost 70% chance of a 50 basis point&nbsp;cut. The odds eased to around 40% after the New YorkFed&nbsp;said William's speech had not been about immediate policy direction.

MSCI's All-Country World Index, which tracks shares in 47 countries, was having its best day in over two weeks, up nearly half a percent on the day. It was, however, still on track to break a six-week streak of weekly gains.

E-mini futures for the S&amp;P 500 index were 0.3% higher, indicating a higher opening on Wall Street later in the day.

"Despite a rather lackluster earnings season so far, investors are focusing on the prospect of a considerably easier monetary policy, which is why we see&nbsp;stocks&nbsp;ready to open higher this morning," said Konstantinos Anthis, head of research at ADSS.

Will the rate cut Suffice?

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1%, bouncing back from the previous day's losses, while Japan's Nikkei advanced 2%.

Elsewhere in Asia, the Shanghai Composite Index rose 0.8%, Australian&nbsp;stocks&nbsp;added 0.75% and South Korea's KOSPI gained 1.4%.

For the week, the MSCI ex-Japan index climbed a modest 1%, as riskier assets were partly capped by US President Donald Trump's reiteration of his threat to impose further duties on Chinese imports.

The two sides resumed talks recently to seek an end to a year-long trade war that has rattled financial&nbsp;markets&nbsp;and slowed&nbsp;global&nbsp;growth. But most analysts do not expect an agreement any time soon, with some predicting a strong risk of further tariff escalation.

"Although central banks around the world have embarked on policy-easing in a bid to support their respective economies, investors are left to ponder whether the stimulus will be enough to offset the effects from heightened US-China trade tensions," said Han Tan, market analyst at FXTM.

The&nbsp;dollar&nbsp;index against a basket of six major currencies&nbsp;stood about 0.1% higher at 96.875 after losing roughly 0.5% overnight to a two-week low of 96.671 in the wake of the comments from the&nbsp;Fed's Williams.

The euro was 0.15% lower at $1.1259 after climbing 0.45% the previous day.

US Treasury yields were lower across the board. The 2-year yield was at 1.7894% after touching a two-week low of 1.7520%. The 10-year yield declined to a 10-day low of 2.023% and was last at 2.0465%.

In commodities, US crude oil futures reversed a large part of the previous day's deep losses, briefly rising 1.45% to $56.10 per barrel before easing back to $55.81, up 0.9%.

Crude rallied after the reports on the Iranian drone. Oil prices had fallen on Thursday amid expectations that output would rise in the Gulf of Mexico as operations resumed following last week's hurricane.

Spot gold eased 0.5% as investors locked in profits after bullion surpassed $1,450 an ounce for the first time in more than six years on dovish&nbsp;Fed&nbsp;signals and Middle East tension.

Global stocks rose on Friday as investors firmed up bets on a US interest rate cut at the end of July after a speech by a top Federal Reserve official further cemented expectations for one, fuelling appetite for risky assets and capping the dollar.

Global stocks rose on Friday as investors firmed up bets on a US interest rate cut at the end of July after a speech by a top Federal Reserve official further cemented expectations for one, fuelling appetite for risky assets and capping the dollar. European shares opened higher across the board, with the pan-European STOXX 600 index gaining 0.7% in early trade. Britain's FTSE 100 index gained 0.6% and Germany's DAX rose 0.75%. In oil markets, crude surged after the United States said its navy had destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows, raising concerns about supply disruptions out of the region. Iran said all its drones had returned safely to base, and there was no sign of a major escalation in the Gulf. Comments by New York Fed President John Williams on Thursday made it virtually certain, in the markets' view, that the Fed would cut interest rates by at least 25 basis points at its July 30-31 policy meeting and also revived expectations of an even deeper 50 bps reduction. Financial markets reacted quickly, with Fed fund rate futures at one point pricing in an almost 70% chance of a 50 basis point cut. The odds eased to around 40% after the New YorkFed said William's speech had not been about immediate policy direction. MSCI's All-Country World Index, which tracks shares in 47 countries, was having its best day in over two weeks, up nearly half a percent on the day. It was, however, still on track to break a six-week streak of weekly gains. E-mini futures for the S&P 500 index were 0.3% higher, indicating a higher opening on Wall Street later in the day. "Despite a rather lackluster earnings season so far, investors are focusing on the prospect of a considerably easier monetary policy, which is why we see stocks ready to open higher this morning," said Konstantinos Anthis, head of research at ADSS. Will the rate cut Suffice? MSCI's broadest index of Asia-Pacific shares outside Japan was up 1%, bouncing back from the previous day's losses, while Japan's Nikkei advanced 2%. Elsewhere in Asia, the Shanghai Composite Index rose 0.8%, Australian stocks added 0.75% and South Korea's KOSPI gained 1.4%. For the week, the MSCI ex-Japan index climbed a modest 1%, as riskier assets were partly capped by US President Donald Trump's reiteration of his threat to impose further duties on Chinese imports. The two sides resumed talks recently to seek an end to a year-long trade war that has rattled financial markets and slowed global growth. But most analysts do not expect an agreement any time soon, with some predicting a strong risk of further tariff escalation. "Although central banks around the world have embarked on policy-easing in a bid to support their respective economies, investors are left to ponder whether the stimulus will be enough to offset the effects from heightened US-China trade tensions," said Han Tan, market analyst at FXTM. The dollar index against a basket of six major currencies stood about 0.1% higher at 96.875 after losing roughly 0.5% overnight to a two-week low of 96.671 in the wake of the comments from the Fed's Williams. The euro was 0.15% lower at $1.1259 after climbing 0.45% the previous day. US Treasury yields were lower across the board. The 2-year yield was at 1.7894% after touching a two-week low of 1.7520%. The 10-year yield declined to a 10-day low of 2.023% and was last at 2.0465%. In commodities, US crude oil futures reversed a large part of the previous day's deep losses, briefly rising 1.45% to $56.10 per barrel before easing back to $55.81, up 0.9%. Crude rallied after the reports on the Iranian drone. Oil prices had fallen on Thursday amid expectations that output would rise in the Gulf of Mexico as operations resumed following last week's hurricane. Spot gold eased 0.5% as investors locked in profits after bullion surpassed $1,450 an ounce for the first time in more than six years on dovish Fed signals and Middle East tension.

Fed rate cut bets lift stocks, dollar steadies

Gold rose on Friday and was on track to post a weekly gain, supported by an easing dollar and weaker than expected Chinese trade data which stoked global growth concerns.

Spot gold was up 0.3% at $1,408.27 per ounce at 1136 GMT.

<a href="https://www.wionews.com/entertainment/bollywood-celebrities-applaud-dutee-chand-for-winning-gold-in-world-university-235221">Gold</a> has risen about 0.6% so far this week.

<a href="https://www.wionews.com/business-economy/us-delegation-to-discuss-indias-new-e-commerce-rules-during-trade-talks-235262">US</a> gold futures rose 0.2% to $1,409.8 an ounce.

"We have <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/opinions/us-china-trade-war-is-making-china-stronger-234526&amp;sa=U&amp;ved=2ahUKEwiN-qTzsK_jAhXVfd4KHd9NDEsQFjAJegQIABAC&amp;usg=AOvVaw2mZbA9dK8Er7gAUzoNsiFc">(China's) trade</a> data out this morning which disappointed mainly on the import side, suggesting the Chinese economy is still struggling," said Julius Baer analyst Carsten Menke.

"This provided fuel to the growth worries, so that's why gold as a haven is benefiting."

China's exports fell in June as the United States ramped up trade pressure, while imports shrank more than expected, pointing to further strains on the world's second-largest economy.

Also helping gold was the dollar index, which eased for a third straight session as stronger-than-expected US <a href="https://www.wionews.com/business-economy/euro-zone-growth-inflation-outlook-cut-as-risks-from-us-trade-grow-234720/amp">inflation</a> data failed to shake convictions that the Federal Reserve will start cutting interest rates this month.

Despite the robust core US consumer price index data, money markets still indicated one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 2019.

"The comments from the Fed and the minutes this week were on the dovish side and have given the market hope that there might be a chance of a 50 basis point cut," said ABN Amro analyst Georgette Boele.

Fed Chair Jerome Powell indicated on Thursday that a rate cut is likely at the Fed's next meeting as businesses slow investment due to trade disputes and their impact on global growth.

Spot gold has risen more than 11% since it touched the year's low of $1,265.85 per ounce in May, mainly on expectations of aggressive monetary policy easing and growth worries.

"The market is clearly more aggressive than we are, so there is some potential for disappointment on the rate side," Menke said.

"So, if we don't get three rate cuts by the end of the year this could be a trigger for a little bit of a short-term correction in gold."

In the physical market, gold buying stalled in top Asian hubs this week as consumers sold back bullion to cash in on the steep price rally.

A recent import duty hike further dented waning interest in an Indian market hit by a surge in local rates.

Elsewhere, silver and platinum were up 0.1% at $15.13 and $821 per ounce respectively.

Palladium fell 0.2% to $1,557.50 an ounce, edging away from a 16-week peak of $1,605.52 touched in the previous session.

Gold rose on Friday and was on track to post a weekly gain, supported by an easing dollar and weaker than expected Chinese trade data which stoked global growth concerns.

Gold rose on Friday and was on track to post a weekly gain, supported by an easing dollar and weaker than expected Chinese trade data which stoked global growth concerns. Spot gold was up 0.3% at $1,408.27 per ounce at 1136 GMT. Gold has risen about 0.6% so far this week. US gold futures rose 0.2% to $1,409.8 an ounce. "We have (China's) trade data out this morning which disappointed mainly on the import side, suggesting the Chinese economy is still struggling," said Julius Baer analyst Carsten Menke. "This provided fuel to the growth worries, so that's why gold as a haven is benefiting." China's exports fell in June as the United States ramped up trade pressure, while imports shrank more than expected, pointing to further strains on the world's second-largest economy. Also helping gold was the dollar index, which eased for a third straight session as stronger-than-expected US inflation data failed to shake convictions that the Federal Reserve will start cutting interest rates this month. Despite the robust core US consumer price index data, money markets still indicated one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 2019. "The comments from the Fed and the minutes this week were on the dovish side and have given the market hope that there might be a chance of a 50 basis point cut," said ABN Amro analyst Georgette Boele. Fed Chair Jerome Powell indicated on Thursday that a rate cut is likely at the Fed's next meeting as businesses slow investment due to trade disputes and their impact on global growth. Spot gold has risen more than 11% since it touched the year's low of $1,265.85 per ounce in May, mainly on expectations of aggressive monetary policy easing and growth worries. "The market is clearly more aggressive than we are, so there is some potential for disappointment on the rate side," Menke said. "So, if we don't get three rate cuts by the end of the year this could be a trigger for a little bit of a short-term correction in gold." In the physical market, gold buying stalled in top Asian hubs this week as consumers sold back bullion to cash in on the steep price rally. A recent import duty hike further dented waning interest in an Indian market hit by a surge in local rates. Elsewhere, silver and platinum were up 0.1% at $15.13 and $821 per ounce respectively. Palladium fell 0.2% to $1,557.50 an ounce, edging away from a 16-week peak of $1,605.52 touched in the previous session.

Gold edges up on weaker dollar, China data fuels growth concerns

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July.

Those views were bolstered after solid gains in US jobs for June and pushed down Wall Street for the second straight day.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1% in early trade, after falling 0.6% the previous day. Japan's Nikkei rose 0.5% thanks in part to the yen's retreat against the dollar.

On Wall Street, the S&amp;P 500 lost 0.48% while the Nasdaq Composite dropped 0.78%, led by fall in Apple Inc.

Money market futures are still fully pricing in a 25 basis point cut at the Fed's next policy meeting on July 30-31, but have almost priced out a larger 50 basis point reduction.

"The headline payrolls figures was pretty strong but wages were tepid, so, on the whole, a 25 basis-point cut would be justified as a pre-emptive move and I think the current market pricing is fair," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management.

Investors' focus is shifting to Fed Chairman Jerome Powell's testimony before Congress later in the week for clues on monetary policy.

In the currency market, fading expectations of aggressive easing by the Fed helped the dollar.

The euro traded at $1.1215, near Monday's low of $1.1207, its weakest level since June 19.

The dollar changed hands at 108.75 yen, having risen up to 108.81 yen in the previous session, its highest in more than a month.

The British pound stood at 1.2518, not far from six-month lows of $1.2481 touched on Friday.

Oil prices were slightly softer as concerns about whether slowing global economic growth would hit oil demand eclipsed tensions over Iran's nuclear programme.

Brent crude futures fell 23 cents, or 0.36% to settle at $63.88 a barrel. US West Texas Intermediate (WTI) crude futures shed 19 cents, or 0.33% to settle at $57.47 a barrel.

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July.

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July. Those views were bolstered after solid gains in US jobs for June and pushed down Wall Street for the second straight day. MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1% in early trade, after falling 0.6% the previous day. Japan's Nikkei rose 0.5% thanks in part to the yen's retreat against the dollar. On Wall Street, the S&P 500 lost 0.48% while the Nasdaq Composite dropped 0.78%, led by fall in Apple Inc. Money market futures are still fully pricing in a 25 basis point cut at the Fed's next policy meeting on July 30-31, but have almost priced out a larger 50 basis point reduction. "The headline payrolls figures was pretty strong but wages were tepid, so, on the whole, a 25 basis-point cut would be justified as a pre-emptive move and I think the current market pricing is fair," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management. Investors' focus is shifting to Fed Chairman Jerome Powell's testimony before Congress later in the week for clues on monetary policy. In the currency market, fading expectations of aggressive easing by the Fed helped the dollar. The euro traded at $1.1215, near Monday's low of $1.1207, its weakest level since June 19. The dollar changed hands at 108.75 yen, having risen up to 108.81 yen in the previous session, its highest in more than a month. The British pound stood at 1.2518, not far from six-month lows of $1.2481 touched on Friday. Oil prices were slightly softer as concerns about whether slowing global economic growth would hit oil demand eclipsed tensions over Iran's nuclear programme. Brent crude futures fell 23 cents, or 0.36% to settle at $63.88 a barrel. US West Texas Intermediate (WTI) crude futures shed 19 cents, or 0.33% to settle at $57.47 a barrel.

Asian stocks hobbled by fading expectations for aggressive Fed rate cut

<a href="https://www.wionews.com/business-economy/gold-rises-as-focus-returns-to-growth-concerns-fed-rate-cut-233960/amp">Gold prices</a> ticked lower on Tuesday, as the dollar scaled to multi-week highs on reduced expectations of an aggressive US rate cut, although softer share markets capped the metal's losses.

Spot gold was down 0.2% at $1,393.03 per ounce as of 0740 GMT.

US&nbsp;gold futures fell 0.3% to $1,395.70 an ounce.

"Weakness in gold prices is largely due to an easing of rate cut expectations and bond yields are recovering. Markets continue to price in a 25 basis point cut but it looks like sentiment is easing and the dollar has rebounded," said Benjamin Lu, an analyst at Phillip Futures.

The dollar index hit a near three-week peak, making bullion expensive for holders of other currencies. The US Treasury yield curve hit its flattest level in more than a month after investors rolled back expectations for a sharp U.S. rate cut at the end of July. [USD/] [US/]

A week ago, the market forecast an 80.1% chance of a 25-basis-point cut, and a 19.9% chance of a 50-basis-point cut, according to CME Group's FedWatch tool. The chances are now 98% and 2%, respectively.

Adding to the reduced expectations for a larger cut, U.S. consumers in June lifted their inflation expectations for the first time in three months, New York Fed data showed on Monday.

However, the decline in gold prices was limited by weaker financial markets, with <a href="https://www.wionews.com/business-economy/asian-stocks-hobbled-by-fading-expectations-for-aggressive-fed-rate-cut-234146">Asian stocks</a> falling to their lowest in two-and-a-half weeks on Tuesday.

"We're seeing a lot of Fed policy uncertainty leak into the equation across risk assets in general. Equity markets falling is the most poignant example supporting gold prices," said Stephen Innes, managing partner at Vanguard Markets.

Market participants now await Fed Chairman Jerome Powell's two-day testimony before Congress, which starts on Wednesday for clues about a rate decrease.

Meanwhile, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.15% to 795.80 tonnes on Monday from 796.97 tonnes on Friday.

Hedge funds and money managers raised their bullish stance in COMEX gold in the week to July 2, the U.S. Commodity Futures Trading Commission (CFTC) said on Monday in a report delayed because of the US Independence Day holiday.

On the technical side, spot gold may end its correction around a support at $1,387 and then retest a resistance at $1,421 per ounce, according to Reuters technical analyst Wang Tao.

Among other precious metals, silver gained 0.1% to $15.04 per ounce.

Palladium slipped 0.4% to $1,555.32, and platinum fell 0.2% to $812.23

Gold prices ticked lower on Tuesday, as the dollar scaled to multi-week highs on reduced expectations of an aggressive US rate cut, although softer share markets capped the metal's losses.

Gold prices ticked lower on Tuesday, as the dollar scaled to multi-week highs on reduced expectations of an aggressive US rate cut, although softer share markets capped the metal's losses. Spot gold was down 0.2% at $1,393.03 per ounce as of 0740 GMT. US gold futures fell 0.3% to $1,395.70 an ounce. "Weakness in gold prices is largely due to an easing of rate cut expectations and bond yields are recovering. Markets continue to price in a 25 basis point cut but it looks like sentiment is easing and the dollar has rebounded," said Benjamin Lu, an analyst at Phillip Futures. The dollar index hit a near three-week peak, making bullion expensive for holders of other currencies. The US Treasury yield curve hit its flattest level in more than a month after investors rolled back expectations for a sharp U.S. rate cut at the end of July. [USD/] [US/] A week ago, the market forecast an 80.1% chance of a 25-basis-point cut, and a 19.9% chance of a 50-basis-point cut, according to CME Group's FedWatch tool. The chances are now 98% and 2%, respectively. Adding to the reduced expectations for a larger cut, U.S. consumers in June lifted their inflation expectations for the first time in three months, New York Fed data showed on Monday. However, the decline in gold prices was limited by weaker financial markets, with Asian stocks falling to their lowest in two-and-a-half weeks on Tuesday. "We're seeing a lot of Fed policy uncertainty leak into the equation across risk assets in general. Equity markets falling is the most poignant example supporting gold prices," said Stephen Innes, managing partner at Vanguard Markets. Market participants now await Fed Chairman Jerome Powell's two-day testimony before Congress, which starts on Wednesday for clues about a rate decrease. Meanwhile, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.15% to 795.80 tonnes on Monday from 796.97 tonnes on Friday. Hedge funds and money managers raised their bullish stance in COMEX gold in the week to July 2, the U.S. Commodity Futures Trading Commission (CFTC) said on Monday in a report delayed because of the US Independence Day holiday. On the technical side, spot gold may end its correction around a support at $1,387 and then retest a resistance at $1,421 per ounce, according to Reuters technical analyst Wang Tao. Among other precious metals, silver gained 0.1% to $15.04 per ounce. Palladium slipped 0.4% to $1,555.32, and platinum fell 0.2% to $812.23

Gold edges lower as dollar firms; weaker equities limit losses

How The U.S. Weaponises Its Dollar U.S. President Trump has got what he wanted, a grand parade. But is the U.S. losing its edge on its most potent weapon, the $? Palki summarises the story of the U.S. dollar.

Gravitas: America's most potent weapon, $ is losing its edge!

The rupee appreciated by 8 paise to 69.38 against the US dollar in opening trade Wednesday, driven by easing crude oil prices and foreign fund inflows.

Forex traders said the weakening of the greenback vis-a-vis some major currencies overseas aided the local unit. However, a weak opening in domestic equities weighed on the domestic currency.

The rupee opened strong at 69.38 at the interbank forex market, then gained further ground and touched 69.36, displaying gains of 8 paise over its last close.

The local unit, however, pared some gains and was trading at 69.38, up 6 paise from its previous close at 1005 hrs.

The rupee had settled at 69.44 against the US dollar Tuesday.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 95.79 crore Tuesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, eased 1.43 per cent to US $61.40 per barrel.

Domestic bourses opened on a bearish note Wednesday with benchmark indices Sensex trading 202.24 points down at 39,748.22 and Nifty down 57.65 points at 11,907.95.

The rupee appreciated by 8 paise to 69.38 against the US dollar in opening trade Wednesday, driven by easing crude oil prices and foreign fund inflows. Forex traders said the weakening of the greenback vis-a-vis some major currencies overseas aided the local unit.

The rupee appreciated by 8 paise to 69.38 against the US dollar in opening trade Wednesday, driven by easing crude oil prices and foreign fund inflows. Forex traders said the weakening of the greenback vis-a-vis some major currencies overseas aided the local unit. However, a weak opening in domestic equities weighed on the domestic currency. The rupee opened strong at 69.38 at the interbank forex market, then gained further ground and touched 69.36, displaying gains of 8 paise over its last close. The local unit, however, pared some gains and was trading at 69.38, up 6 paise from its previous close at 1005 hrs. The rupee had settled at 69.44 against the US dollar Tuesday. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 95.79 crore Tuesday, according to provisional exchange data. Brent crude futures, the global oil benchmark, eased 1.43 per cent to US $61.40 per barrel. Domestic bourses opened on a bearish note Wednesday with benchmark indices Sensex trading 202.24 points down at 39,748.22 and Nifty down 57.65 points at 11,907.95.

Rupee rises 8 paise to 69.38 vs US dollar in early trade

Russia & China agree to defang the U.S. dollar. The two countries will trade in Ruble & Yuan respectively to develop national payment systems. How significant is this decision? Here's a report.

Gravitas:  Russia, China dump the dollar

The rupee appreciated by 26 paise to 69.00 against the US dollar in early trade Tuesday driven by the weakening of the greenback in overseas markets and sustained foreign fund inflows.

Forex dealers said, selling of the American currency by exporters, fresh foreign fund inflows and easing crude oil prices supported the rupee.

At the interbank foreign exchange, the rupee opened on a weak note at 69.10, but gathered momentum and rose to a high of 69.00 against the US dollar, showing 26 paise gain over its previous closing.

The local unit, however, pared some gains and was quoted at 69.13 against the American currency at 0949 hrs.

The rupee had settled at 69.26 against the US dollar on Monday.

Forex traders said the rupee strengthened on an expectation of a rate cut in key policy rates by the Reserve Bank of India.

Meanwhile, foreign institutional investors (FIIs) remained net buyers in capital markets, putting in Rs 3,068.88 crore Monday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, fell 0.31 per cent to trade at USD 61.09 per barrel.

Domestic bourses opened on a cautious note Tuesday with benchmark indices Sensex trading 58.44 points down at 40,209.18 and Nifty down 19.75 points at 12,068.80.

The rupee appreciated by 26 paise to 69.00 against the US dollar in early trade Tuesday driven by the weakening of the greenback in overseas markets and sustained foreign fund inflows.

The rupee appreciated by 26 paise to 69.00 against the US dollar in early trade Tuesday driven by the weakening of the greenback in overseas markets and sustained foreign fund inflows. Forex dealers said, selling of the American currency by exporters, fresh foreign fund inflows and easing crude oil prices supported the rupee. At the interbank foreign exchange, the rupee opened on a weak note at 69.10, but gathered momentum and rose to a high of 69.00 against the US dollar, showing 26 paise gain over its previous closing. The local unit, however, pared some gains and was quoted at 69.13 against the American currency at 0949 hrs. The rupee had settled at 69.26 against the US dollar on Monday. Forex traders said the rupee strengthened on an expectation of a rate cut in key policy rates by the Reserve Bank of India. Meanwhile, foreign institutional investors (FIIs) remained net buyers in capital markets, putting in Rs 3,068.88 crore Monday, according to provisional exchange data. Brent crude futures, the global oil benchmark, fell 0.31 per cent to trade at USD 61.09 per barrel. Domestic bourses opened on a cautious note Tuesday with benchmark indices Sensex trading 58.44 points down at 40,209.18 and Nifty down 19.75 points at 12,068.80.

Rupee rises 26 paise to 69.00 against US dollar

The rupee appreciated by 31 paise to 69.39 against the US dollar in opening trade Monday, driven by easing crude prices and a higher opening in domestic equities.

Forex dealers said the local currency gained strength ahead of the Reserve Bank of India's monetary policy meet. The Monetary Policy Committee (MPC), which decides on key interest rates, will hold a meeting on June 3, 4 and 6.

The rupee opened strong at 69.48 at the interbank forex market then gained further ground and touched 69.39 amid a positive opening in domestic equities, displaying gains of 31 paise over its last close.

The rupee Friday had settled at 69.70 to the US dollar.

Meanwhile, the 10-year government bond yield was at 6.95 per cent on Monday, against the previous close of 7.03 per cent on Friday.

Forex traders said foreign fund inflows also supported the domestic currency.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 676.15 crore on a net basis Friday, provisional exchange data showed.

Brent crude futures, the global oil benchmark, eased 1.13 per cent to USD 61.29 per barrel.

Meanwhile, the benchmark BSE Sensex was trading higher by 187.60 points, or 0.47 per cent to quote at 39,901.80 while the NSE Nifty was trading at 11,963.10, higher by 40.30 points, or 0.34 per cent.

The rupee appreciated by 31 paise to 69.39 against the US dollar in opening trade Monday, driven by easing crude prices and a higher opening in domestic equities.

The rupee appreciated by 31 paise to 69.39 against the US dollar in opening trade Monday, driven by easing crude prices and a higher opening in domestic equities. Forex dealers said the local currency gained strength ahead of the Reserve Bank of India's monetary policy meet. The Monetary Policy Committee (MPC), which decides on key interest rates, will hold a meeting on June 3, 4 and 6. The rupee opened strong at 69.48 at the interbank forex market then gained further ground and touched 69.39 amid a positive opening in domestic equities, displaying gains of 31 paise over its last close. The rupee Friday had settled at 69.70 to the US dollar. Meanwhile, the 10-year government bond yield was at 6.95 per cent on Monday, against the previous close of 7.03 per cent on Friday. Forex traders said foreign fund inflows also supported the domestic currency. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 676.15 crore on a net basis Friday, provisional exchange data showed. Brent crude futures, the global oil benchmark, eased 1.13 per cent to USD 61.29 per barrel. Meanwhile, the benchmark BSE Sensex was trading higher by 187.60 points, or 0.47 per cent to quote at 39,901.80 while the NSE Nifty was trading at 11,963.10, higher by 40.30 points, or 0.34 per cent.

Rupee rises 31 paise to 69.39 against US dollar

The rupee depreciated by 13 paise to 70.07 against the US dollar in early trade Friday as US-China trade-related concerns and foreign fund outflows weighed on investor sentiments.

Forex traders said, rising crude oil prices and strengthening of the US dollar against some major rival currencies overseas also pulled down the local unit.

The rupee opened weak at 70.04 at the interbank forex market and then fell further to 70.07 against the American currency, down 13 paise over its last close.

The rupee had settled at 69.94 against the US dollar Thursday.

Meanwhile, President Donald Trump on Thursday held out hopes of salvaging a trade deal with China.

"It's possible to do it," Trump said of the trade deal at the White House. "I did get last night a very beautiful letter from President Xi." But Trump warned he was also more than happy to use tariffs in resolving his differences with China.

On the domestic front, foreign institutional investors (FIIs) pulled out Rs 655.36 crore on a net basis Thursday, provisional data showed.

Domestic bourses opened on a cautious note Friday with benchmark indices Sensex trading 18.16 points higher at 37,577.07 and Nifty down 4.70 points at 11,297.10.

Brent crude futures, the global oil benchmark, rose 0.31 per cent to $70.61 per barrel.

The rupee depreciated by 13 paise to 70.07 against the US dollar in early trade Friday as US-China trade-related concerns and foreign fund outflows weighed on investor sentiments.

The rupee depreciated by 13 paise to 70.07 against the US dollar in early trade Friday as US-China trade-related concerns and foreign fund outflows weighed on investor sentiments. Forex traders said, rising crude oil prices and strengthening of the US dollar against some major rival currencies overseas also pulled down the local unit. The rupee opened weak at 70.04 at the interbank forex market and then fell further to 70.07 against the American currency, down 13 paise over its last close. The rupee had settled at 69.94 against the US dollar Thursday. Meanwhile, President Donald Trump on Thursday held out hopes of salvaging a trade deal with China. "It's possible to do it," Trump said of the trade deal at the White House. "I did get last night a very beautiful letter from President Xi." But Trump warned he was also more than happy to use tariffs in resolving his differences with China. On the domestic front, foreign institutional investors (FIIs) pulled out Rs 655.36 crore on a net basis Thursday, provisional data showed. Domestic bourses opened on a cautious note Friday with benchmark indices Sensex trading 18.16 points higher at 37,577.07 and Nifty down 4.70 points at 11,297.10. Brent crude futures, the global oil benchmark, rose 0.31 per cent to $70.61 per barrel.

Rupee slips 13 paise to 70.07 against US dollar

The rupee Monday declined by 25 paise to close at 69.42 against the US dollar as forex traders turned cautious in a holiday-truncated week.

At the Interbank Foreign Exchange (forex), the domestic currency opened at 69.07 a dollar and fell further to touch the day's low of 69.46. It finally settled at 69.42 per dollar, down 25 paise over its previous close.

The rupee Friday had closed 25 paise lower at 69.17 to the US dollar.

"Rupee continues to consolidate in a holiday-truncated week," said V K Sharma, Head PCG &amp; Capital Markets Strategy, HDFC Securities. 
 
Forex and equity markets will remain shut on Wednesday on account of "Mahavir Jayanti" while most of the major financial markets are closed on Friday for the start of the Easter holidays.

Forex traders said easing crude oil prices in the overseas market, sustained foreign fund inflows and heavy buying in the domestic equity market restricted the fall in the local unit.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 713 crore Monday, according to the provisional data.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.14 per cent to 96.83.

Meanwhile, Brent crude futures, the global oil benchmark, fell 0.84 per cent to trade at 70.95 per barrel.

Equity benchmark Sensex added another 139 points on Monday, marking third straight session of gains, as encouraging start of the earnings season by IT major TCS boosted investors' sentiment.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.2293 and for rupee/euro at 78.3002. The reference rate for rupee/British pound was fixed at 90.6193 and for rupee/100 Japanese yen at 61.84.&nbsp;

The rupee Monday declined by 25 paise to close at 69.42 against the US dollar as forex traders turned cautious in a holiday-truncated week. At the Interbank Foreign Exchange (forex), the domestic currency opened at 69.

The rupee Monday declined by 25 paise to close at 69.42 against the US dollar as forex traders turned cautious in a holiday-truncated week. At the Interbank Foreign Exchange (forex), the domestic currency opened at 69.07 a dollar and fell further to touch the day's low of 69.46. It finally settled at 69.42 per dollar, down 25 paise over its previous close. The rupee Friday had closed 25 paise lower at 69.17 to the US dollar. "Rupee continues to consolidate in a holiday-truncated week," said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities. Forex and equity markets will remain shut on Wednesday on account of "Mahavir Jayanti" while most of the major financial markets are closed on Friday for the start of the Easter holidays. Forex traders said easing crude oil prices in the overseas market, sustained foreign fund inflows and heavy buying in the domestic equity market restricted the fall in the local unit. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 713 crore Monday, according to the provisional data. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.14 per cent to 96.83. Meanwhile, Brent crude futures, the global oil benchmark, fell 0.84 per cent to trade at 70.95 per barrel. Equity benchmark Sensex added another 139 points on Monday, marking third straight session of gains, as encouraging start of the earnings season by IT major TCS boosted investors' sentiment. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.2293 and for rupee/euro at 78.3002. The reference rate for rupee/British pound was fixed at 90.6193 and for rupee/100 Japanese yen at 61.84.

Rupee drops 25 paise to close at 69.42 against dollar

Asian markets staged a tentative recovery Tuesday from the previous day's steep losses, with investors increasingly anxious about the state of the global economy.

With a mixed lead from Wall Street, regional traders had few catalysts to drive buying, while safe-haven flows saw the dollar edge up against high-yielding currencies.

Attention is also back on London, where MPs essentially wrested control of the Brexit debate from Prime Minister Theresa May with a vote that will allow them to decide on a number of possibilities for how to proceed.

Investors in Asia were suffering a hangover from Monday's pummelling, which came on the back of a drop in benchmark 10-year Treasury bond yields below those for three-month bills -- for the first time since before the global financial crisis.

This so-called inverted yield curve shows investors are more willing to buy long-term debt -- usually viewed as a higher risk -- as they consider the short-term outlook more hazardous. Such a scenario has preceded several recessions in recent decades.

"Recession worries may be premature for the US, but the negative signals are consistent with the recent data," said OANDA senior market analyst Edward Moya.

May's fresh crisis&nbsp;

Tokyo led gains, jumping 1.8 per cent by the break -- having dived three per cent Monday -- while Hong Kong edged up 0.4 per cent and Shanghai was flat.

Sydney added 0.1 per cent, Singapore put on 0.7 per cent, while Seoul, Wellington, Taipei and Manila also rose.

In Britain, the Brexit saga took a new twist when lawmakers inflicted yet another defeat on May by voting to take control of parliamentary business that will see them hold a series of ballots on different options for leaving the EU.

They will now choose to revoke Article 50 and cancel Brexit, hold another referendum, vote for a deal including a customs union and single market membership, or leave the EU without a deal.

However, even if they decide a majority course of action, the government is not legally bound to follow their instructions.

The move came after the premier admitted she still had not secured the votes needed to get her Brexit deal through parliament.

EU leaders last week delayed the divorce but warned that unless May can push her withdrawal deal through, Britain must come up with a new plan by April 12 -- or leave its closest trading partner with no deal at all.

While uncertainty reigns, the sterling was slightly higher Tuesday, with investors still hopeful Britain will avoid a no-deal Brexit, which some warn could be an economic calamity for the country.

Asian markets staged a tentative recovery Tuesday from the previous day's steep losses, with investors increasingly anxious about the state of the global economy.

Asian markets staged a tentative recovery Tuesday from the previous day's steep losses, with investors increasingly anxious about the state of the global economy. With a mixed lead from Wall Street, regional traders had few catalysts to drive buying, while safe-haven flows saw the dollar edge up against high-yielding currencies. Attention is also back on London, where MPs essentially wrested control of the Brexit debate from Prime Minister Theresa May with a vote that will allow them to decide on a number of possibilities for how to proceed. Investors in Asia were suffering a hangover from Monday's pummelling, which came on the back of a drop in benchmark 10-year Treasury bond yields below those for three-month bills -- for the first time since before the global financial crisis. This so-called inverted yield curve shows investors are more willing to buy long-term debt -- usually viewed as a higher risk -- as they consider the short-term outlook more hazardous. Such a scenario has preceded several recessions in recent decades. "Recession worries may be premature for the US, but the negative signals are consistent with the recent data," said OANDA senior market analyst Edward Moya. May's fresh crisis Tokyo led gains, jumping 1.8 per cent by the break -- having dived three per cent Monday -- while Hong Kong edged up 0.4 per cent and Shanghai was flat. Sydney added 0.1 per cent, Singapore put on 0.7 per cent, while Seoul, Wellington, Taipei and Manila also rose. In Britain, the Brexit saga took a new twist when lawmakers inflicted yet another defeat on May by voting to take control of parliamentary business that will see them hold a series of ballots on different options for leaving the EU. They will now choose to revoke Article 50 and cancel Brexit, hold another referendum, vote for a deal including a customs union and single market membership, or leave the EU without a deal. However, even if they decide a majority course of action, the government is not legally bound to follow their instructions. The move came after the premier admitted she still had not secured the votes needed to get her Brexit deal through parliament. EU leaders last week delayed the divorce but warned that unless May can push her withdrawal deal through, Britain must come up with a new plan by April 12 -- or leave its closest trading partner with no deal at all. While uncertainty reigns, the sterling was slightly higher Tuesday, with investors still hopeful Britain will avoid a no-deal Brexit, which some warn could be an economic calamity for the country.

Asian markets rise but traders on edge over global outlook

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