The rupee settled at 69.77 against 69.94 at the previous close. The
local unit moved in 69.75-69.9350 per dollar band intra-day.
The Indian rupee, Asia’s worst performing unit this year against the
dollar, logged its biggest annual decline in five years as higher crude
oil prices and interest rate hikes by the U.S. Federal Reserve led to
foreign fund outflows. The USD/INR pair volatility is expected to
remain subdued compared to calendar year 2018. Heightened
movements could be expected around 2019 elections. Fundamental
factors such as global crude prices.
Global Currency
The dollar was broadly steady in thin year‐end trading on Monday
with the Australian dollar AUD=D3 leading gainers as tensions over a
trade dispute between the United States and China faded on
expectations of progress in trade talks. The dollar has been relatively
stable going into the end of 2018 despite falling U.S. Treasury yields.
The euro EUR was last quoted at $1.1440, flat versus the dollar.
Although the single currency has gained versus the dollar in recent
weeks, economic growth and inflation in Europe remain much
weaker than the European Central Bank's expectations. The euro is
set to lose nearly 5 percent versus the dollar in 2018.
Global Markets
Oil prices rose about 2 percent on the final day of the year on
Monday, mirroring gains in stock markets, but were on track for the
first annual decline in three years amid lingering concerns of a
persistent supply glut. U.S. West Texas Intermediate (WTI) crude
futures CLc1 were at $45.99 a barrel, up 66 cents, or 1.4 percent,
from their last close. WTI also rose more than a $1 in early trade,
reaching $46.38 a barrel.
Gold prices scaled a six‐month high on Monday but was poised for its
first annual decline since 2015 after previous declines on higher
interest rates and dollar strength from the Sino-U.S. trade conflict.
