India Rupee Likely Flat; Yuan Slips After US Bans China Flights

India Rupee Likely Flat; Yuan Slips After US Bans China Flights

04 Jun 2020 08:45 AM
 

The Indian rupee is expected to remain little changed against the dollar amid a Chinese yuan-led decline in Asian currencies after the U.S. banned passenger flights from China, further hurting the relationship between the two major economies.

The rupee will likely be quoted at 75.45-75.55 in early trades compared with 75.46 at 2.00 p.m. yesterday.

Asian currencies were mostly lower Thursday. The onshore yuan declined 0.2% to 7.1254 after the U.S. banned Chinese passenger airlines from flying into the country beginning Jun. 16, a development that is likely to further worsen the already strained relationship between the two countries. Washington’s move comes in response to Beijing not allowing U.S. carriers to resume flights into China.

Regional risk appetite was mixed amid the fall in the yuan and upbeat Wall Street cues.