The rupee settled at 70.4850 against 70.9050 at the previous close.
The local unit moved in 70.45 -70.9850 per dollar band intra-day.
The Indian rupee jumped to a near-two-month high against the
dollar, helped by corporate dollar inflows following a long weekend
and strong local shares. The rupee was expected to remain under
pressure today on U.S. President Trump’s statement on India trade
tariff, but corporate dollar inflows after yesterday’s holiday and
foreign portfolio flows helped the unit to recover. Rally in local
shares and lack of reports of further escalation in tensions between
India and Pakistan relations drove traders to cut their long dollar
positions, triggering stop losses.
Global Currency
The U.S. dollar held within sight of a two-week high against its major
peers in early European hours on Tuesday, as China cut its 2019
economic growth target, dimming the outlook for global growth.
China said on Tuesday it was targeting economic growth of 6.0% to
6.5% in 2019, down from the 6.6% growth reported last year, which
was already the lowest in decades.
The euro fell towards a one-week low on Tuesday as the dollar
gained broadly and investors began pricing in more caution from the
European Central Bank at its meeting on Thursday. The ECB is facing
growing pressure to address the question of how to protect the euro
zone economy from a protracted slowdown.
Global Markets
Oil fell towards $65 a barrel on Tuesday, pressured by the restart of
Libya's biggest oilfield and on expectations for an increase in U.S.
crude inventories. Some wells at Libya's El Sharara oilfield have
restarted and the aim is to reach initial output of 80,000 brl per day.
Gold prices held close to a more than five-week low on Tuesday as
the dollar firmed and global equity markets held near a five-month
crest, making bullion less appealing for investors.
