The rupee settled at 71.10 against 71.1750 at the previous close. The
local unit moved in 70.98‐71.1850 per dollar band intra‐day.
Pair to tip in 70.90-71.20 range today.
The Indian rupee rose against the dollar, tracking broad weakness in
the U.S currency ahead of the Federal Reserve’s policy review and
interim budget at home later this week. Rupee’s strength is primarily
because of the dollar weakness but it could not keep most of the
gains as lower local equities put pressure on the unit. Soft oil prices
also aided sentiments. In coming days, rupee may see some
depreciation as worries over domestic fiscal position and weak local
equities can further drag.
Global Currency
The dollar rose slightly against the euro in early trading in Europe
Monday after a dismal survey from the respected German research
institute Ifo. The institute said export expectations in the euro zone's
largest economy slumped in January, less than a week after its
widely‐followed business confidence index for Germany fell to its
lowest in two and a half years.
The euro edged down on Monday as investors bought the dollar and
prepared for volatile markets ahead of U.S.‐China trade talks and a
Federal Reserve policy decision. Investors are focused on
Wednesday's Fed meeting when policymakers are expected to signal
a pause in their tightening cycle and to acknowledge growing risks to
the U.S. economy.
Global Markets
Oil fell 1 percent on Monday after U.S. companies added rigs for the
first time this year, a signal that crude output may rise further, but
the price is still on course for its strongest gain in the month of
January for 14 years
Gold jumped sharply on Friday, and has kept its bid today, after news
hit the market that the Fed officials have been discussing ending the
current balance sheet reduction program shortly.
