The rupee settled at 69.88 against 70.1450 at the previous close. The
local unit moved in 69.8250 -70.0350 per dollar band intra-day.
The Indian rupee closed at its highest level in over two months
against the dollar, aided by weaker-than-expected U.S. jobs data and
expectations of foreign fund inflows amid a jump in local shares. We
are witnessing the carry trade inflows on expectations of ruling party
BJP to come to power in the upcoming elections. Lack of uncertainty
in the global markets is also aiding the rupee and the dollar may
come under pressure if weak U.S. jobs numbers sustain. Traders will
focus on the upcoming elections for further cues.
Global Currency
The U.S. dollar was little changed in early European hours on
Monday, as investors looked ahead to the latest U.S. retail sales
report for further hints on the strength of the economy. The U.S.
dollar index, which measures the greenback’s strength against a
basket of six major currencies, held steady at 97.29 best level since
Dec. 14 last year.
British pound was down 0.1% to $1.2998 after briefly dipping to a
near three-week low of $1.2960 on nervousness over Brexit. Sterling
has come under renewed pressure after British foreign minister
Jeremy Hunt said on Sunday Brexit could be reversed if lawmakers
reject the government's exit deal.
Global Markets
Oil prices gained on Monday in Asia following reports that Saudi
Arabia oil minister Khalid al-Falih said there will be no OPEC+ output
policy change until June. International Brent Oil Futures were up
0.3%, at $65.94 a barrel.
Gold prices slipped on Monday in Asia after gaining almost 1% in the
previous session as a weak U.S. employment report sent the
greenback lower and clouded the outlook for the global economy.
