The Rupee opened weaker on Thursday, tracking Asian peers, with traders expecting importer dollar demand to limit gains sparked by New Delhi and Washington clinching a long-awaited trade deal. The rupee has recovered from record lows near 92 after the U.S. trade deal was announced late on Monday but has been unable to rise above the 90 handle. Traders said dollar demand from local corporates, including a large conglomerate over the past two sessions, has capped the rupee's near-term gains. The dollar steadied at the start of Asian trade on Thursday ahead of interest rate decisions from the European Central Bank and the Bank of England, both of which are expected to keep rates on hold later in the global day. The U.S. dollar index , which measures the greenback's strength against a basket of six currencies, was up 0.2% at 96.671, having traded near a two-week high earlier. The euro was steady at $1.1800 ahead of the European Central Bank decision, where it is expected to keep rates on hold. Investors' attention will be focused on the post-policy press conference to gauge the outlook for rates over the coming months. Against the yen , the U.S. dollar was fetching 156.92 yen, keeping steady as Japan's election campaign enters its final stretch ahead of Sunday's poll. The dollar has gained some strength this week as financial markets assess U.S corporate earnings seasons, now halfway complete, and stocks turn risk-off. Fed funds futures are pricing an implied 90.6% probability that the U.S. central bank will hold rates at its next two-day meeting ending on March 18, unchanged from a day earlier, according to the CME Group's FedWatch tool. The Australian dollar was up 0.1% at $0.70045 following the release of trade balance data which was a little ahead of market estimates. The New Zealand dollar was 0.1% firmer at $0.60045. Oil prices fell on Thursday after the U.S. and Iran agreed to hold talks in Oman on Friday, easing concerns of a potential military conflict between them that could disrupt supply from the key Middle East-producing region. Brent crude futures fell $1, or 1.4%, to $68.47 per barrel at 0152 GMT. U.S. West Texas Intermediate crude prices fell 91 cents, or also 1.4%, to trade at $64.23.......
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.......