Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Oil Prices Hit Rupee; Most Asian Currencies Slip on Recession Spectre

Global bond yields clung near record lows, while the inverse US yield curve, in which long-date yields are lower than their short-dated counterparts, stoked fears of a future recession.


Updated:August 29, 2019, 12:38 PM IST
Indian Rupee
Image for representation. (PTI)

Most emerging Asian currencies slipped on Thursday, as global recession worries and anxiety over the Sino-US trade tussle capped risk appetite while higher oil prices weighed on the rupee.

Global bond yields clung near record lows, while the inverse US yield curve, in which long-date yields are lower than their short-dated counterparts, stoked fears of a future recession.

Bets on safe haven assets picked up, with gold prices surging to near six-year highs, while the Japanese yen traded 0.2% higher.

Despite a firmer than expected central bank fixing, the onshore Chinese yuan weakened past 7.17 against the dollar for the first time since Feb. 26, 2008.

It had eased for a 10th straight session on Wednesday, the longest losing streak since December 2015.

"Beyond adjusting to tariffs, the CNY is also reacting to the generalised slowdown in global activities, which is usually negative for EM currencies, as well as weaker domestic growth," analysts at Societe Generale wrote in a note.

Societe Generale also expects policymakers to allow the yuan to continue to weaken going forward, unless capital outflow pressures intensify or speculative positioning becomes excessive.

The rupee slipped 0.4%, taking an added hit from a jump in overnight crude prices, while the Korean won shed 0.2% ahead of its central bank monetary policy meeting on Friday.

A Reuters poll showed the BoK will likely keep interest rates unchanged on Friday but cut it at the next meeting in October as growing trade tensions hit the export-reliant economy.

While economic headwinds continue to build a case for easing, the BOK will have to fine-tune its actions to control currency depreciation.

The won's decline past the 1,200 to the dollar level amid an escalating China-US trade war and a persistently falling yuan should make the BOK cautious and dissuade it from cutting rates too fast, analysts at DBS Group said in a note.

"Top officials from the finance ministry have stepped up verbal interventions this week, warning that the government will take pre-emptive actions if there is a herd behaviour in the KRW market," they added.

Bucking the trend, the Philippine peso recovered slightly after having shed 0.3% in the previous session.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

Most Active
Company Price Change %Gain
Yes Bank 68.55 0.88
Maruti Suzuki 6,450.30 0.91
Tata Motors 129.55 1.25
HDFC Bank 2,257.45 -0.59
Axis Bank 674.25 1.71
Company Price Change %Gain
IEX 118.10 -9.71
Yes Bank 68.60 0.96
Reliance 1,225.55 1.26
Tata Motors 129.55 1.25
Maruti Suzuki 6,449.80 0.91
Top Gainers
Company Price Change %Gain
BPCL 408.55 6.34
IOC 130.10 4.58
Titan Company 1,123.40 3.43
GAIL 129.25 2.78
ICICI Bank 413.40 2.66
Company Price Change %Gain
Vedanta 149.20 2.72
ICICI Bank 413.25 2.61
ONGC 128.80 2.34
Kotak Mahindra 1,483.55 1.79
Axis Bank 674.35 1.74
Top Losers
Company Price Change %Gain
Bharti Airtel 343.05 -1.29
Dr Reddys Labs 2,731.55 -1.28
Sun Pharma 422.85 -1.16
HDFC Bank 2,257.45 -0.59
ITC 239.90 -0.35
Company Price Change %Gain
Bharti Airtel 342.75 -1.35
Sun Pharma 423.25 -1.04
HDFC Bank 2,256.25 -0.62
ITC 239.95 -0.35
HUL 1,804.80 -0.10

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results