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The Rupee closed little changed on Thursday, wedged between persistent dollar demand from importers and positive cues from gains in Asian peers as appetite for riskier assets recovered. Despite the positive regional cues, the rupee shuffled in a narrow band as expectations of gradual depreciation continued to spur dollar demand from importers while state-run banks were spotted offering dollars intermittently. Frequent interventions by the RBI around the 88.80 mark have helped support the rupee since it first hit that level in late-September. A congressional impasse has resulted in what is now the longest-ever U.S. government shutdown, delaying the release of key economic data. Remarks from Federal Reserve policymakers will be in focus later in the day. The U.S. dollar declined for a second consecutive day on Thursday as data showed weakness in the U.S. labor market, increasing expectations of another rate cut this year. Economic data from private sources has drawn increased investor interest amid the absence of official data during the U.S. government's longest-ever shutdown. Thursday's weakness for the dollar follows a strong rally that started last week after the Federal Reserve tempered expectations for additional cuts this year amid limited economic data, persistent inflation, and internal disagreement among policymakers. Traders now see a 69% probability of a December rate cut, up from 62% the previous day, according to CME FedWatch. However, this remains well below the roughly 98% odds priced in late October. The euro rose 0.3% against the dollar to $1.15225, while the dollar slipped 0.2% to 99.935 against a basket of major rivals, including the common currency. Sterling traded 0.3% higher at $1.3088. It had touched a seven-month low of $1.3011 on Wednesday. Before the BoE meeting, markets were pricing a one-in-three chance of a cut, while most analysts believed the central bank would likely hold fire. By next month, the BoE will have seen official inflation and jobs data for October and November, and will know the extent of tax increases that are widely expected in finance minister Rachel Reeves' November 26 budget. The Norwegian crown currency was 0.2% higher against the euro at 11.76 after Norge's Bank rate decision on Thursday. Against the dollar, it rose 0.1%. Norway's central bank kept its policy interest rate on hold at 4.0% to combat inflationary pressure, as unanimously predicted by analysts in a Reuters poll, and reiterated that further easing was likely in the year ahead. Oil prices fell on Thursday as investors weighed a potential supply glut and weakened demand in the United States, the world's largest oil consumer. Brent crude futures were down 38 cents, or 0.6%, to $63.14 a barrel at 11:34 a.m. EDT (1634 GMT). U.S. West Texas Intermediate futures were down 47 cents, or 0.8%, to $59.13.......
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GlobalFX

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.......
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