The rupee settled at 69.90 against 69.69 at the previous close. The local unit moved in 69.7475-69.9375 per dollar band intra-day.
Dollar/rupee ended at three-week high Monday on oil-related buying by nationalised banks, while overseas outflows from local stocks and a strong greenback further supported dollar demand. PSBs including Bank of India, Bank of Baroda bought dollars mostly on behalf of oil importers. Also, FII outflows from local equities support the demand for dollar. Dollar/rupee ended at Rs 69.90/$1 Monday, level last seen on May 23, compared to previous close of Rs 69.79/$1. Local stocks ended over one percent lower on Monday.
Global Currency
The U.S. dollar rose to a two-week high on Monday as strong economic data led investors to think again about how dovish the Federal Reserve is likely to sound at this week's meeting. Broader currency markets were quiet, as traders hesitated to put on large positions before the Fed's two-day meeting, a meeting of European Central Bank policymakers in Portugal and the Bank of England's interest rate decision on Thursday.
Expectations of a rate cut at the Fed's June 18-19 meeting have fallen to a probability of around 20%. But bets for monetary easing at its July meeting remain high, with money markets pricing in 24 basis points of cuts from current rates. The euro was little changed at $1.1213 EUR=EBS , as investors awaited.
Global Markets
Oil prices slipped on Monday as signs of an economic slowdown amid international trade disputes began to outweigh supply fears stoked by attacks on oil tankers in the Gulf of Oman last week. Brent futures LCOc1 fell 35 cents, or 0.56%, to $61.66 a barrel by 1030 GMT, having gained 1.1% on Friday.
Gold retreated further on Monday from a 14-month peak hit in the previous session as the dollar strengthened on strong U.S. retail sales data before the U.S. Federal Reserve meeting this week.
