The Rupee opened weak on Wednesday, with risk aversion triggered by the Greenland dispute compounding persistent pressures and leaving the currency reliant on the central bank's support.Unnerved by U.S. President Donald Trump's threats over Greenland and the potential for a U.S.–Europe trade dispute linked to the issue, investors swung into risk-off mode, dumped the dollar, and bought into safe-haven assets. Asian currencies were caught between a softer risk appetite and a weaker dollar, leaving them mixed with limited follow-through. While in Asia terms, the rupee should be "good", "the thing is it's already under pressure so this kind of risk-off just hits it harder than the rest", a currency trader at a bank said.The rupee on Tuesday came within a whisker of its lifetime low, slipping to 91.0525, with bankers saying the Reserve Bank of India was present to support the currency for most of the session. Further denting risk sentiment was a sell-off in Japanese bonds, which pushed yields to record highs on fiscal concerns.The move is vying for market attention with the Greenland dispute, and investors focus on Wednesday will by on Trump’s interview at the at Davos. The dollar languished near three-week lows against the euro ?and Swiss franc on Wednesday after White House threats over Greenland triggered a broad selloff in U.S. ?assets, from the currency to Wall Street stocks and Treasury bonds. Declines in the dollar accelerated sharply overnight with a 0.53% slide in the dollar index - which measures the ?currency against six major peers - marking its worst single-day performance in six weeks. On Wednesday, ?it was flat at 98.541. The greenback tumbled more than 1% against Europe's shared currency at one point on Tuesday to reach the lowest since December 30 at $1.1770 per euro . It was last changing hands at $1.1720. The dollar plunged nearly 1.2% to ?reach 0.78795 Swiss franc on Tuesday, also the lowest since December 30, before recovering slightly to last trade at 0.78965 franc. The dollar ?was steady against the yen, ?however, with the Japanese currency ?suffering its own selloff after Takaichi on Monday called snap elections for February 8 and pledged a wave of measures to loosen fiscal policy. The longest tenors of Japanese government bonds were hit hardest, with the 40-year yield spiking 27.5 basis points to a record-high 4.215% ?on Tuesday, although on Wednesday that eased slightly to 4.145%.mThe yen traded at a record low of 200.19 per Swiss franc on Tuesday , and languished at 185.50 per euro on Wednesday , very close to the record low of 185.575 from a week ago. The Bank of Japan is ?due to decide monetary policy on Friday, but after hiking interest rates ?at the previous meeting in January, no change is expected. Oil prices fell on Wednesday as an expected build-up of U.S. crude inventories outweighed a temporary halt in output at two large fields in Kazakhstan and geopolitical pressure from U.S. threats of tariffs over its bid to gain control of Greenland. Brent futures fell 79 cents, or 1.22%, to $64.13 a barrel at 0201 GMT. The U.S. West Texas Intermediate crude contract lost 64 cents, or 1.06%, to trade at $59.72 a barrel.......
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