Indian Rupee Snaps 2-Day Rise On Oil Rally, Trade War Escalation

The rupee settled at 72.63 against 72.1950 at the previous close. The local unit moved in 72.34-72.73 per dollar band intra-day.
The Indian rupee fell for the first time in three sessions against the dollar, as crude oil prices jumped to a near-four-year high, while further escalation in the ongoing trade war between the U.S. and China weighed on investor sentiment. There has been some (central bank) intervention but trend remains negative for the rupee, especially with equities in red. Major negatives for the rupee remains escalation in trade war along with higher crude oil prices. Further losses in domestic shares can also drag on rupee.

The dollar slipped on Monday, erasing its earlier gains, as investors searched for fresh clues to extend a multi-month rally in the dollar before a widely expected interest rate hike by the U.S. central bank this week. Market forecasts for further interest rate hikes by the U.S. FED in line with policymakers' thinking at roughly three more rate hikes after a quarter-point increase this week.
The euro pared back earlier losses on the weaker greenback. EUR/USD increased 0.11% to 1.1761 . Sterling remained in focus, as a majority Prime Minister Theresa May’s cabinet supported a Canada-style trade deal with the European Union.

Oil prices jumped more than 2 percent to a four-year high on Monday after OPEC declined to announce an immediate increase in production despite calls by U.S. President Donald Trump for action to raise global supply.
Gold was steady on Monday partly in response to a dip in the dollar, but activity was muted because investors are waiting for a U.S. central bank meeting this week, expected to result in an interest rate increase. Spot gold was little changed, down 0.02 percent at $1,198.85

Date	Time	Currency	Event	Actual	Forecast	Previous
24-09-2018	13.30	EUR	German IFO Business Climate Index	103.7	103.2	103.9

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