The rupee settled at 71.0625 against 70.97 at the previous close. The
local unit moved in 70.99 -71.3450 per dollar band intra-day.
The Indian rupee fell for the first time in three sessions against the
dollar, as India’s air strikes against a terrorist training camp in
Pakistan territory escalated geopolitical tensions. The geopolitical
risk is something that will be watched. In case Pakistan does not
retaliate, the concerns will die down. However, in case of any
retaliation, there can be depreciation in the rupee. We will be on
wait-and-watch mode on the rupee until general elections and the
movement will largely depend on various factors including foreign
fund flows.
Global Currency
The dollar held near a one-week low against its rivals on Tuesday as
currency markets waited for testimony from Fed Chairman Jerome
Powell that might give a further boost to risk appetite. Risky assets
had a strong start to the week with the Chinese currency hitting a
seven-month high on Monday after U.S. President Trump confirmed
he would delay a planned hike in tariffs on Chinese imports.
Sterling soared past $1.32 on Tuesday to its highest level since
October following reports that British Prime Minister Theresa May
will rule out a no-deal Brexit. May will propose to her cabinet of
senior ministers on Tuesday that she formally rules out leaving the
European Union without a deal.
Global Markets
Brent oil edged up to $65 a barrel on Tuesday as Saudi Arabia and
the rest of OPEC were expected to stick to their policy of cutting
production, despite renewed pressure from U.S. President Donald
Trump.
Gold prices edged higher on Tuesday in Asia as traders await a batch
of key U.S. economic data due later this week. Gold Futures for April
delivery was up $2.05, or 0.15%, to $1,331.55 a troy ounce.
