The Indian rupee little changed at 71.1725 pair now at 71.02 against
71.1650 previous close.
Pair to tip in 71.80-71.20 range today.
The Indian rupee rose to a more-than-one-week high against U.S.
currency in early trade, as foreign banks sold dollars, offsetting the
broad strength in the dollar. opes of foreign fund inflows have lifted
the rupee. Foreign banks including a German lender and a British
lender were among the major sellers. However, volatility in crude oil
prices and the dollar index’s strength will keep the gains in check.
Mid-month demand from importers will also be watched.
Global Currency
The dollar held steady versus its peers on Tuesday, hovering close to
its 2019 high as U.S.-Sino trade tensions and global growth worries
underpinned the greenback's safe-haven appeal. Beyond its safe
haven appeal, the dollar is still the highest-yielding currency in the
developed world and with all major central banks turning dovish, the
greenback seems relatively attractive.
The single currency was relatively unchanged at $1.1278 in Asian
trade, having lost nearly half a percent on Monday. The euro EUR=
has weakened for six consecutive sessions, and traders expect
further losses now that the crucial psychological support of $1.13
has been broken. The next level of support for EUR/USD is the
November low of 1.1215 which should be tested quickly.
Global Markets
Oil prices rose on Tuesday amid OPEC-led supply cuts and U.S.
sanctions against Iran and Venezuela, although analysts expect
surging U.S. production and concerns over economic growth to keep
markets in check.
Gold prices held steady on Tuesday as investors kept a cautious
stance ahead of a fresh round of Sino-U.S trade talks, while a firmer
dollar capped gains for the bullion, which was drawing support from
global economic slowdown worries.
