The rupee settled at 68.86 against 68.93 at the previous close. The
local unit moved in 68.7775-68.98 per dollar band intra-day.
Dollar/rupee ended down Tuesday on likely overseas fund inflows
into local stocks amid a weak greenback. Likely FII inflows into local
equities weighed on the spot. Also a weak dollar further pulled back
spot. Major foreign banks sold dollars. Local stocks ended lower
tracking sell-off in global markets, triggered by sluggish macro data
raising fresh concerns of a slowdown in global economy. The
greenback weakened against it major pairs after US 10-year Treasury
yields edged higher as fear of recession hitting US economy receded.
Global Currency
The dollar has enjoyed a degree of support from the fact that special
counsel Robert Mueller’s investigation into allegations of collusion
between the Trump campaign and Russia in 2016 ended without any
further charges being brought. It faces further tests later Tuesday
from the latest release of data on U.S. housing.
Sterling is center stage again Tuesday morning in Europe after U.K.
lawmakers voted on Monday night to take control of the Brexit
process from the government of Prime Minister Theresa May. The
pound’s reaction so far has been only moderately positive, as
markets have been anticipating a softer Brexit since the Withdrawal
Agreement was rejected by parliament in January.
Global Markets
Gold fell on Tuesday, retreating from a near one-month peak hit in
the previous session, as equity markets regained some ground
following a sharp slide driven by fears of a global slowdown, and
bond yields edged up.
Oil rose towards $68 a barrel on Tuesday as OPEC supply cuts and
expectations of lower U.S. inventories outweighed concern about
weaker demand due to an economic slowdown.
