The Indian rupee little changed at 71.79 pair now at 71.77 against
71.90 previous close.
Pair to tip in 71.60- 72.00 range today.
The Indian rupee rose against the dollar in early trade, supported by
lower global crude oil prices and narrowing trade deficit at home.
Decline in crude oil prices in the previous session continues to
support the rupee as lower prices will ease pressure from the
nation’s current account deficit. Volumes are expected to be muted
ahead of Fed meeting this week, while month-end demand from
importers will be watched for further cues.
Global Currency
The dollar held near a 19‐month high on Monday, bolstered by safehaven
buying as heightened concerns of a global economic
slowdown reduced appetites for riskier assets such as stocks and
Asian currencies. Weaker‐than‐expected economic data from China
and Europe and fears of a possible U.S. government shutdown
spooked investors away from stocks toward the dollar and yen.
The euro EUR= was also little changed at $1.1310, having lost 0.6
percent last week after weaker-than-expected data out of France
and Germany suggested that economic activity in Europe remains
weak.
Global Markets
Oil prices were largely steady on Monday after falling 2 percent in
the previous session, but remained under pressure amid weaker
growth in major economies and concerns about oversupply. U.S.
West Texas Intermediate (WTI) crude futures were at $51.33 per
barrel.
Gold has recovered from 10‐day lows seen on Friday but may lack
clear direction on caution ahead of the FOMC rate decision, due
Wednesday. The yellow metal will likely take a beating if the Fed
sounds more hawkish‐than‐expected, squashing bets of a Fed rate
hike pause in 2019.
