The rupee settled at 71.0350 against 70.93 at the previous close. The
local unit moved in 70.7750-71.1450 per dollar band intra-day.
The Indian rupee slipped for a third straight session to a fresh nearone-
month low against the dollar, as importers stepped up
greenback purchases, while weak German growth data weighed on
the euro, lifting the U.S. currency. Rebound in the dollar index and
surge in crude oil prices are the prime reasons for weakness in the
rupee. However, the currency should stabilize around current levels
as 71.30-71.40 levels is seen as a strong support area. Reversal in
global risk appetite amid optimism surrounding the U.S.-China trade
deal will support the local unit going forward.
Global Currency
The dollar weakened on Tuesday on heightened expectations the
Federal Reserve will hold off on raising rates this year due to a
slowdown in global growth, while sterling edged up ahead of
Britain's parliamentary vote on its Brexit plan. Interest rate futures
markets are pricing in no further U.S. rate hikes in 2019.
The euro fell on Tuesday after data showed Germany's economy
slowed in 2018, underscoring fears about a broader slump in Europe.
Europe's largest economy is struggling with a cooling of the global
economy and trade disputes driven by U.S. President Donald
Trump's policies.
Global Markets
Oil prices rose on Tuesday amid supply cuts by producer club OPEC
and Russia, although a darkening economic outlook may soon weigh
on growth in fuel demand. Brent crude oil futures were at $59.47 per
barrel, up 48 cents, or 0.81 percent, from their last close.
Gold fell on Tuesday as the dollar gained due to weak German
economic data weighing on the euro, while investors turned their
attention to a parliamentary vote on the British government's plan
to exit the European Union.
