The rupee settled at 71.1750 against 71.07 at the previous close. The
local unit moved in 70.96-71.24 per dollar band intra-day.
The Indian rupee was little changed this week against the dollar as
lower crude oil prices offset the impact of foreign fund outflows
from local bonds, while the country’s fiscal position stayed in focus
ahead of the federal budget. Easing of oil prices gave the market
some relief, but as fiscal talks remained in center stage foreign
portfolio investors pulled out money from local bonds. In coming
days, rupee’s depreciation is more likely as it will remain well offered
since the dollar index remains elevated and as local stock market
took a plunge today.
Global Currency
Sterling scaled an 11-week high on Friday after The Sun reported
that Northern Ireland's Democratic Unionist Party has privately
decided to offer conditional backing for Prime Minister Theresa
May's Brexit deal next week.
The euro was headed for a second weekly decline on Friday after the
head of the European Central Bank said economic growth was likely
to be weaker than previously expected. ECB President Mario Draghi
blamed factors ranging from China's slowdown to Brexit for the
slowdown.
Global Markets
Oil prices edged up on Friday as turmoil in Venezuela increased the
chances of tighter global supply if the United States makes good on
signals that it could impose sanctions on Venezuelan exports. fresh
data on surging U.S. fuel stocks and worries about U.S.-China trade
talks weighed on prices.
Gold edged up on Friday as the dollar eased from a multi-week peak,
with bullion seen consolidating in a narrow range supported by
concerns about global growth and political uncertainties, including
the U.S. government shutdown.
