The yen rallied as fading hopes of a US-China trade deal at this month's G20 meeting and massive street protests in Hong Kong drove investors into safe-haven assets, says Motilal Oswal.
The Indian rupee is trading lower at 69.58 per dollar versus previous close 69.51.
On June 13 the domestic currency ended 16 paise lower at 69.51 against the US dollar despite sharp rise in crude oil prices.
Rupee in this week has been consolidating in a narrow range of 69.20 and 69.80 despite volatility in major crosses and is expected to open little changed against dollar with traders eyeing crude oil prices and prospects of an interest rate cut by the Federal Reserve at next week’s meeting, said Motilal Oswal.
The other major catalyst for the dollar in the near term is whether the United States and China will renew trade negotiations at the G20 summit on June 28-29. Uncertainty over Brexit, and the Conservative party leadership contest, are keeping the pound under pressure.
