The rupee settled at 70.20 against 69.68 at the previous close. The
local unit moved in 69.80-70.23 per dollar band intra-day.
The Indian rupee logged its first loss in three sessions and dropped
to a near-two-week low against the dollar, tracking persistent spike
in crude oil prices that prompted importers to step up dollar
purchases. Rupee has witnessed pullback from 69.25-69.30 levels on
massive dollar purchases by importers and some central bank action
cannot be ruled out. Volatility in crude prices and dollar index in an
illiquid trade has also weighed on the rupee. The rupee rose to a
five-month high of 69.23 to dollar yesterday, before trimming gains.
Global Currency
The U.S. dollar recovered some of its prior losses on Tuesday as U.S.
and China wrap up a two‐day trade meeting. Officials from the two
countries are wrapping up talks in Beijing, with traders waiting for
any news that the two have made progress on reaching an
agreement. The dollar had dipped Friday after Federal Reserve
Chairman Jerome Powell said the Fed would act “quickly” if market
concerns outweigh the strong economic data
The euro fell on Tuesday as the euro zone economy showed more
signs of slowing, while the dollar gained despite growing bets the
U.S. central bank will pause its rate hike cycle.
Global Markets
Oil prices rose slightly on Tuesday, supported by hopes that talks in
Beijing between U.S. and Chinese officials might defuse a trade
dispute between the world's two biggest economies, while OPEC-led
supply cuts also tightened markets.
Gold prices slid on Tuesday in Asia, as the U.S. dollar rebounded
after falling for four straight sessions amid expectations that the U.S.
Federal Reserve may shift its position and slow down future
increases in interest rates in 2019.
