The rupee settled at 70.70 against 71.1650 at the previous close. The
local unit moved in 70.69-71.2150 per dollar band intra-day.
The Indian rupee rose to a one-month high against the dollar, helped
by banks’ greenback sales likely on behalf of their custodial clients
who stepped up investments into local markets. Rupee’s
appreciation is not due to any changes in the fundamentals but
because of expectations of fund inflows, therefore some strength in
the local currency may continue in the near term. However, weak
local shares and uptick in dollar index along with rebound in the oil
prices limited larger gains in the rupee. For further cues U.S.-China
trade talks will be closely watched by the investors.
Global Currency
The dollar was on track for its longest winning streak in two years on
Tuesday, as hopes of a breakthrough in U.S-China trade talks and a
tentative deal to avoid a U.S. government shutdown encouraged
investors to cover short bets on the currency. Traders bet the U.S.
Federal Reserve would pause in its rate increases and other major
economies would grow quickly.
Sterling GBP=D3 was steady at $1.2878 before a statement by Prime
Minister Theresa May to lawmakers in parliament. While the Fed
held interest rates steady last month, the case for buying the euro
and the pound has weakened steadily. Economic data in Europe have
deteriorated and Brexit concerns have dogged the British pound
Global Markets
Gold rose on Tuesday's slight pause in the dollar's rally as the United
States and China continue talks aimed at ending their trade conflict.
Spot gold XAU was up 0.3 percent at $1,312.45 an ounce.
Oil prices gained nearly 2 percent on Tuesday, supported by OPECled
production cuts which Saudi Arabia said it would surpass by over
half a million barrels per day (bpd) and by U.S. sanctions against Iran
and Venezuela.
