The Indian rupee little changed at 70.14 pair now at 70.12 against 69.91 previous close.
Pair to tip in 69.85-70.25 range today.
Dollar/rupee opened at an over two-months high on Monday on likely FII outflows from the local stocks, higher Brent oil prices. US-China trade tensions continued to weigh on risk appetite of the investors. Foreign banks are buying dollars may be behalf of overseas investors, who are pulling out from the local stocks. Also, brent is inching towards $71/ barrel level.
Global Currency
The safe-haven yen firmed slightly and the Chinese yuan and Australian dollar dipped on Monday, after the latest escalation in the trade war between the United States and China. The world's two biggest economies appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any "bitter fruit" that harmed its interests.
While we hope for the best, our baseline case is now for the United States and China to fail to reach a deal, meaning tariffs will get raised on the remainder of Chinese exports to the United States.
Global Markets
Gold prices steadied on Monday as trade talks between the United States and China hit a wall, raising doubts over whether the two countries would be able to reach a deal, thereby boosting demand for safe-haven assets. Spot gold XAU= gained 0.1% to at $1,286.59 per ounce.
Oil futures edged down on Monday, pressured by fears over global economic growth amid a standoff in Sino-U.S. trade talks. Brent crude futures were at $70.49 a barrel.
