The rupee settled at 70.9750 against 71.14 at the previous close. The
local unit moved in 70.9650 -71.0850 per dollar band intra-day.
The Indian rupee rose for a second session and closed at a near-two
week high against the dollar, on improved appetite for risk assets
after U.S. President Donald Trump said he will delay the proposed
tariff hikes on Chinese shipments. Two factors are helping the Indian
rupee - one is the decline in the dollar index due to progress in trade
talks between U.S. and China. Secondly, a strong rebound in local
equities has also aided the local unit. However, steady rise in oil
prices is hurting the domestic currency. Most Asian currencies also
traded higher against the dollar, led by gains in Chinese yuan, which
jumped to a seven-month high.
Global Currency
The dollar was broadly lower early Monday in Europe after U.S.
President Donald Trump’s decision to delay the imposition of more
tariffs on Chinese imports triggered a relief rally in risk assets. A
warning from Chinese news agency Xinhua that there could still be
problems with the deal dampened spirits only marginally.
The euro also hit a two-week high against the dollar on hopes that a
truce can revive a stagnating euro-zone economy. However, the
outlook for both currencies is still clouded by the obvious concerns
of their central banks about the short-term outlook, with officials at
both having encouraged hopes of further stimulus last week.
Global Markets
Gold prices edged up on Monday as the dollar fell against the yuan
after U.S. President Donald Trump said he would delay an increase in
tariffs on Chinese goods, while palladium surged to a record high.
Oil prices edged up on Monday toward a 2019 high achieved last
week as sanctions and political uncertainty tightened supply in
several producer countries and U.S.-China talks appeared headed
toward success.
