The rupee settled at 71.11 against 71.10 at the previous close. The
local unit moved in 71.0350-71.21 per dollar band intra-day.
The Indian rupee was little changed against the dollar amid thin
trade, as most investors stayed on sidelines ahead of the Federal
Reserve’s two-day monetary policy meet and the interim budget at
home later this week. Rupee’s move suggests that consolidation in
the currency is expected to continue till budget. With the local
equity market being under pressure, any positive impact of crude oil
prices is been offset as fear of fund outweigh weighed. The
immediate focus is the Fed meet outcome and any development on
the fiscal front that can have implications in the future.
Global Currency
The dollar held near a two-week low on Tuesday as growing concern
over the trade conflict between the United States and China
heightened the safe-haven appeal of the Japanese yen and the Swiss
franc. The United States on Monday announced criminal charges
against China's Huawei Technologies Co Ltd, escalating a fight with
the world's biggest telecommunications equipment maker.
Sterling edged lower before crucial votes later in the day in the
British parliament that are aimed at breaking the Brexit deadlock.
The British currency has rallied 6 percent from Jan. 4 lows, but
further gains may be limited unless lawmakers emerge with a big
majority on the votes
Global Markets
Oil prices rose on Tuesday after Washington imposed sanctions on
Venezuelan state-owned oil firm PDVSA in a move that may curb the
OPEC member's crude exports, but price rises were capped by ample
global supply and signs of a slowing Asian economy.
Gold trades at its highest level since 14 June 2018 ForexLive Buyers
are threatening a real break but may have to wait for the Fed
meeting tomorrow before we see the next leg higher.
