The Rupee closed stronger on Friday but logged a weekly fall as dollar demand related ?to merchant flows, arbitrage trades and maturities in the non-deliverable forward ?market outweighed comfort from a broadly weaker U.S. dollar. The dollar ?index was down 0.2% at 100.7 and on course for its biggest weekly loss in 12 weeks on Friday after a tepid U.S. jobs report cooled market ?expectations ?for a near-term Federal Reserve interest rate hike. Markets ?are now pricing in about a 53% chance for a hike at the September meeting, according ?to LSEG data. The British pound was headed for its biggest weekly jump in 12 weeks against the U.S. ?dollar on Friday, helped by easing domestic political risk and soft U.S. labour market data. Sterling was up 0.1% at $1.3357, taking its weekly gain to 1.2%, its biggest weekly jump against the dollar since early April. The dollar retreated after the U.S. ?added fewer jobs than expected last month, cooling expectations for rate hikes from the Federal Reserve. Against the euro, the pound was down slightly at 85.73 pence. On Thursday it touched its strongest level against the ?single currency ?in a year at 85.47 pence. Markets are still pricing in a greater chance of a rate hike than a rate cut from the Bank of England this year, despite the easing of hostilities in Iran and the slow resumption of oil supplies from the Middle East. On Thursday, BoE rate-setter Catherine Mann said looser financial ?conditions since the last rate ?meeting in June will ?be a key factor in her decision on rates at the July meeting. In Thursday's speech, Mann said she would be ready to vote for a rate rise ?if higher inflation expectations in the wake of the U.S.-Iran war make it ?less likely that ?inflation will return to its 2% target. Oil prices were steady on Friday and little changed ?for the week as traders held on to hopes for a successful outcome from attempts ?to secure peace between the United States and Iran Brent futures were down 8 cents, or 0.11%, at $71.72 a barrel by 0109 GMT. West Texas Intermediate was down 22 cents, or 0.32%, at $68.47 a barrel.......
The US dollar weakened sharply against other major currencies after data showed that the US economy suffered a record contraction in Apr-Jun, while jobless claims rose in the week ended Saturday also rose.The US unit also extended its decline globally on Thursday after Trump raised the possibility of delaying presidential election in the US, scheduled for November.European Stocks ended lower on Thursday due to mounting concern over sluggish economic recovery and a possible second wave of the COVID-19 pandemic.Germany reported its worst decline in GDP since 1970, with the Eurozone’s largest economy shrinking 10.1% quarter-on-quarter in Apr-Jun.Corporate earnings were high on investors' agenda on Thursday.In the US, Most share indices ended lower on Wednesday following bleak economic data.Lack of progress in talks between Congressional Democrats, Republicans and the White House on a new coronavirus aid package also weighed on sentiment.Gold futures settled lower on Thursday after nine consecutive days of gains, with the bullion retreating from a record rally as traders booked some profit.......