The Rupee opened weaker on Friday, pressured by rising oil prices after renewed fighting between ?the U.S. and Iran threatened a fragile ceasefire. Oil prices climbed on Friday after renewed U.S.-Iran ?hostilities dashed hopes of progress on reopening the Strait ?of Hormuz. Iran accused Washington of breaching a month-long ceasefire, while the ?U.S. said it carried out retaliatory strikes after Iranian fire on its ?naval vessels transiting the strait on Thursday. However, U.S. President Donald Trump said the ceasefire remained in effect, while Washington awaited Tehran's response to its ?latest peace proposal. Brent crude, which slid to $96 on Thursday, on hopes of peace, has ?since climbed above $100 to around $101.50. The rupee's recent moves have been heavily conditioned by oil price swings, with crude's ?volatility - fuelled by rapidly shifting expectations of ?a U.S.-Iran ?deal - spurring sentiment-led swings in the currency. A series of central bank measures to cushion the rupee has had only a short-lived impact. The dollar started Friday's Asian session on a firm footing against most major currencies after renewed hostilities broke out between the U.S. and Iran, while the Japanese yen ?held largely steady following fresh verbal jawboning from Tokyo. The dollar index measured against key peers was a touch firmer at 98.235. The rising tensions ?lifted the greenback for a second day from an over two-month low struck ?early in the week on hopes of a peace deal, putting it on track to finish the ?week largely flat.Sterling traded at $1.3555 , headed for its first weekly loss since March, as ?investors awaited local election results that could heap further political pressure on Prime Minister Keir Starmer. The euro was steady at $1.1727 , poised to end the week a touch firmer. The Australian dollar fetched $0.72059 , and the New Zealand kiwi changed hands at $0.59365 , both on track to post a winning week on improved risk appetite in earlier days. Gold rose on Friday and ?was headed for a weekly gain on easing fears of inflation and higher interest rates, as investors remained optimistic about a U.S.-Iran peace deal despite renewed attacks.Spot gold was up 0.7% at $4,719.85 per ?ounce, as of 0218 GMT. Bullion has gained 2.3% so far this ?week.......
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.......