USDINR is closed at 64.1375 against its opening of 64.1800 . Dollar in the offshore market traded down Friday tracking the fall in the spot pair on selling by exporters amid overseas fund inflows into local debt. Speculation that US President Donald Trump's top economic advisor Gary Cohn may quit spooked markets, as it created doubts about Trump's ability to push through reforms such as tax cut and infrastructure spending. FII outflows from local stocks and oil demand will support the spot pair. Asian shares traded mostly lower tracking weak global cues on concerns about ongoing political turmoil in Washington, D.C. The dollar turned mixed after the investors digested Federal Reserve's July monetary policy meeting minutes and US economic data.
On Wednesday, the minutes from the Federal Open Market Committee recent meeting showed that officials were more worried about inflation, with the members divided over the timing of a future interest rate hike amid inflation risks.The minutes indicated that some members want to be "patient" on increasing interest rates on caution about "the recent decline in inflation" and said the Fed "could afford to be patient under current circumstances." Meanwhile, on the US economic front, first-time claims for US unemployment benefits dropped by more than anticipated in the week ended Aug 12th. The report said initial jobless claims fell to 232,000, a decrease of 12,000 from the previous week's unrevised level of 244,000. Manufacturing activity in the Philadelphia-area saw a slightly slower rate of growth in the month of August, said the Federal Reserve Bank of Philadelphia in a report on Thursday.
BSE Sensex closed lower by 271 points, to 31,525, while the Nifty 50 fell 67 points to 9,837.
EVENT:
The U.S. is to round up the week with data on consumer sentiment.
INTERNATIONAL
Asian shares fell across the board, taking a cue from a nervous Wall Street as political woes for President Donald Trump imperil his tax cut and infrastructure spending plans.
Growth in new home prices slowed in China in July with Beijing prices down for a second straight month, reinforcing expectations of further slowing later this year.
Crude oil prices dipped in Asia with from the U.S. last week expected to show continued gains for U.S. shale oil drillers.
Gold drifted slightly higher in Asia with some attention shifting to a tense Himalayan standoff between India and China who fought a brief, but bloody border war over the territory in 1962.
Yen gained further in Asia with the dollar on the back-foot over a widening drop in faith that President Donald Trump can carry through an aggressive economic set of policies.