The rupee settled at 71.80 against 71.24 at the previous close. The
local unit moved in 71.58-71.8175 per dollar band intra-day.
The Indian rupee fell for a second consecutive session today to a
seven-week low against the dollar, as robust U.S. jobs and
manufacturing data lifted U.S. yields and lifted dollar demand. Rupee
came under pressure due to both global and domestic factors.
Higher oil prices and upbeat U.S. jobs data print that lifted dollar,
added to the rupee’s fall which was already pressured by the
populist domestic budget. All eyes are on the MPC policy meet for
the RBI’s take on the expected fiscal slippage and a rate cut is
expected. Rupee can stabilise in the next few days.
Global Currency
The U.S. dollar rose to one-week highs against the yen on Monday,
as strong employment and factory data underpinned demand for the
greenback, but the Federal Reserve's more cautious stance on
monetary policy looked likely to hold gains in check. Dollar sentiment
has undergone a U-turn in recent days with weak European data and
expanding stimulus in China boosting appetite for the greenback,
despite indications from the U.S. Federal Reserve that interest rate
increases may be over for now.
Sterling GBP was broadly flat at $1.3073 in early Asian trade with
traders expecting the pound to remain volatile as Brexit uncertainty
remained high.
Global Markets
Oil hit a two-month high close to $64 a barrel on Monday as OPECled
supply cuts and U.S. sanctions against Venezuela's petroleum
industry offset forecasts of weaker demand and an economic
slowdown.
Gold prices slipped to their lowest in nearly a week on Monday as
global stocks firmed on the back of upbeat economic data from the
United States and a stronger dollar. Spot gold was down about 0.5%.
