The rupee settled at 69.4475 against 69.77 at the previous close. The
local unit moved in 69.44-69.74 per dollar band intra-day.
The Indian rupee rose to a more‐than‐four‐month high against the
dollar in the first trading session of 2019, aided by the greenback’s
overnight decline against major currencies. Volume remained thin as
almost all major markets were shut for the New Year holiday. Apart
from the scheduled data releases, any development on U.S.‐China
trade deal front will be crucial for rupee, while any more uptick in oil
prices will also impact the local currency.
Global Currency
The dollar edged lower in thin year‐end trading on Monday, as
increased risk appetite weighed on demand for safe haven
currencies, but the greenback remained on pace for its strongest
annual performance in three years. The dollar index .DXY , which
tracks the greenback versus the euro, yen, sterling and three other
currencies, was down 0.15 percent on Monday.
The pound rose more than half a percent, supported by broad‐based
gains in stocks and hopes for a resolution of the trade dispute
between the United States and China. The Australian dollar AUD=D3
, a currency highly correlated to global trade, also held near Asian
session highs.
Global Markets
Oil prices ended with full‐year losses for the first time since 2015,
after a desultory fourth quarter that saw buyers flee the market over
growing worries about a supply glut and mixed signals related to
renewed U.S. sanctions on Iran. U.S. West Texas Intermediate crude
(WTI) futures slumped nearly 25 percent.
Gold traded near a more than six‐month peak hit early on Monday
but was headed for its first annual decline since 2015, having lost
this year to dollar strength due to trade tensions and rising interest
rates by the U.S. Federal Reserve.
