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The Rupee opened slightly weaker on Friday, weighed by the softer tone in regional peers and risk-off mood, while traders watch for signs of central bank intervention. The Reserve Bank of India stepped in on Wednesday to spur a modest rupee rally, in what traders said was a milder version of the heavy intervention seen in mid-October. Bankers said the central bank was likely active again on Thursday to support the currency. Market participants said the RBI’s presence and intent to defend the 88.80 level have anchored sentiment for now, though it underscores the currency’s reliance on central bank support amid an adverse flow backdrop. On the flow side, foreign investors have pulled out nearly $1.8 billion from Indian equities over the past six sessions, at a time when importers are actively hedging near-term payables. The dollar, meanwhile, is finding support from a slight tempering of expectations for a Federal Reserve rate cut in December. The dollar index this week climbed past 100 for the first time in three months, before pulling back amid signs of weakness in private sectors surveys. The dollar retreated in early Asia trade on Friday, leading declines among major currencies as investors lacking official data on the U.S. labour market seized upon signs of weakness in private sector surveys. The dollar index , which measures the greenback's strength against a basket of six currencies, fell 0.5% to 99.674, reversing its gains so far this month as bets mounted on a cut at the Fed's next meeting on December 10. With the U.S. government shutdown postponing the release of the monthly non-farm payrolls report, traders have turned to private sector data showing the U.S. economy shed jobs in October in the government and retail sectors, while cost-cutting and the adoption of artificial intelligence by businesses led to a surge in announced layoffs. Trading in Fed funds futures implies a 70% chance of a cut at the U.S. central bank's next meeting, up from a 62% probability a day earlier, according to the CME Group's FedWatch tool. Against the yen, the dollar traded at 153.17 yen , 0.1% firmer compared to late U.S. levels after data released on Friday showed Japanese household spending in September rose 1.8% from a year earlier, slightly worse than the median market forecast for a 2.5% rise. The Australian dollar fetched $0.6479 , while the kiwi traded 0.1% firmer at $0.5635 , both little changed. The offshore yuan traded at 7.1233 yuan per dollar , unchanged in early Asian trade. Sterling traded at $1.3135 , flat so far on the day after the BOE held interest rates steady in a 5-4 decision, with Governor Andrew Bailey casting the deciding vote. British finance minister Rachel Reeves has told the country's budget watchdog that a rise in personal taxation is among the "major measures" she is preparing to announce in her budget, The Times reported on Thursday. The euro was little changed so far in Asia, trading around a one-week high at $1.1550 . Oil edged up on Friday following three days of declines on worries about excess supply and slowing demand in the U.S., though prices appeared to be headed for a second week of losses. Brent crude futures rose 21 cents, or 0.33%, to $63.59 a barrel at 0149 GMT. U.S. West Texas Intermediate crude was at $59.65 a barrel, up 22 cents, or 0.37%.......
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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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