The rupee settled at 70.93 against 70.4850 at the previous close. The
local unit moved in 70.4450-70.9450 per dollar band intra-day.
The Indian rupee slumped to a near-one-month low against the
dollar, as investors’ appetite for risk assets waned after weaker-thanexpected
Chinese trade data. The Indian rupee has been
depreciating in the last few sessions, largely on back of higher crude
prices, which I expect will move higher. Broad strength in the dollar
against Asian units has also added pressure on the rupee. Recovery
in dollar index and the rupee’s resistance to break 69.22 levels is
likely to add to the decline.
Global Currency
The U.S. dollar was little changed, while the Chinese yuan slipped
after data showed the country’s exports shrank the most in 2 years
in December. The U.S. dollar index that tracks the greenback against
a basket of other currencies slipped 0.07% to 95.195. This week
investors will be looking ahead to Tuesday’s data on U.S. producer
price inflation as they continue to gauge the outlook for policy
tightening by the Federal Reserve this year.
The pound edged down from a seven-week high on Monday as
investors prepared for a vote on British Prime Minister Theresa
May's Brexit deal that parliament is expected to vote down. Sterling
is taking its cue from Brexit but the future path of Britain's departure
from the European Union is deeply uncertain.
Global Markets
Oil slipped to around $60 a barrel on Monday after data showed
weakening imports and exports in China, the world's second-largest
oil consumer, raising the prospect of a slowdown in fuel demand.
Gold prices edged up on Monday in Asia while the U.S. dollar was
little changed as investors await further news on additional rate
hikes in the coming months. Gold futures edged up 0.2% at
$1,292.25 on the Comex division
