India’s rupee sinks to record lows
This year rupee fell into a record-low area and it is questionable if it can manage to slow down despite India’s central bank increasing its rate this week, according to specialists following the Reserve Bank of India.
Experts mainly anticipate Asia’s third-biggest economy (India) to increase its benchmark rate by 25 basis points at its conference this week. More raises to come this and next year. While an interest rate hike would usually be anticipated to strengthen a currency, the rupee “is in for continued losses ahead,” according to Prakash Sakpal, vice president of research at Dutch bank ING.
He said. “Even if it hikes by 25 (basis points) as expected that’s unlikely to help the currency … The RBI will have to do more, though that looks unlikely on the grounds of on-target inflation and stress in the financial sector”.
UK’s ‘best days lie ahead, According to Teresa May
On Wednesday Britain’s Prime Minister Theresa May is going to deliver a speech intended to encourage confidence over the country’s future after it leaves the European Union and to wipe off her prominent critic and competitor, ex-Foreign Secretary Boris Johnson.
Prime Minister will state that Britain’s post-Brexit fate is “full of promise” and that the country “has everything we need to succeed” when she addresses party delegates on the closing day of the Conservative Party’s annual conference in Birmingham on Wednesday. May will state to representatives that Britain’s “best days lie ahead of us” and that, nations across the globe are waiting to trade with the U.K. after it leaves the EU in March 2019. “I passionately believe that our best days lie ahead of us and that our future is full of promise,” she will say when she addresses delegates at 10 a.m. U.K. time. “Don’t let anyone tell you we don’t have what it takes: we have everything we need to succeed.”
Gold prices rise on weaken dollar
Risk desire was beaten after the European Union administrators stated concerns over Italy’s budget program, which would extend the deficit significantly. The debt blowout renewed the fears of the eurozone debt crisis.
But, the debt fears were eased after the reports that Italy will decrease its budget deficit at a faster pace than anticipated.
On Tuesday Spot gold was up 0.2% at $1,205.60. Near the beginning of the session, the bullion reached a 5 day high of $1208.30. It increased by 1.3% and it was its highest day percentage increase since Aug. 24.
U.S. gold futures climbed 0.2% to $1,209.49 an ounce.
Benjamin Lu, commodities analyst said “Gold has jumped a little bit on populist sentiments from the Eurozone, Italy deficit concerns, and fall in equities,”
Asia markets mixed, Nikkei Lower
On Wednesday afternoon Asia markets were mostly weaker.
While the Topix index decreased by 0.90% the Nikkei 225 slid by about 0.6% in the afternoon.
On Wednesday morning. Kevin Leung, said on CNBC’s “Squawk Box” “If you look at Japan, the economy’s sort of improving and it’s not subject to the U.S. trade war right now,”
And he added. “If you’re looking from a longer-term perspective… I’m not too worried about the Japanese market,”
Over in Hong Kong, the Hang Seng index was lower by 0.52% in the afternoon and In Australia, the ASX 200 was up by 0.3%.