The rupee settled at 71.70 against 71.72 at the previous close. The local unit moved in 71.5025-71.7250 per dollar band intra-day.
Dollar/rupee ended little changed Monday as oil importers bid in the spot market offset the impact of weak dollar. Weak Chinese and US data improved the prospects for easier policies in building demand for high yielding but riskier assets. Dollar remained weak on prospects of Fed rate cut hence leading to a flat closing in spot. According to the US Labour Department, total non-farm payroll addition stood at 130,K in August falling from 159,K in July, while unemployment rate remained unchanged at 3.7%, data showed.
Global Currency
The euro stayed on the back foot on Monday, having dropped to a five-day low against the dollar overnight, as investors remained convinced the European Central Bank will introduce a new wave of monetary stimulus at its meeting on Thursday. Leveraged funds have increased their net short positions on the euro, expecting the ECB to cut interest rates, announce it will buy government bonds or other European assets, or both.
Traders waited to see whether the British parliament would vote to hold an early general election before the Oct. 31 Brexit deadline. If a snap election were held and the Conservative Party won, it could scrap recent legislation to extend Britain's exit from the European Union for a third time.
Global Markets
Oil prices rose on Monday after the new Saudi Arabian energy minister, Prince Abdulaziz bin Salman, confirmed expectations that there would be no radical change in his country's oil policy.
Gold prices inched lower on Monday as equities rose, but policy easing expectations by major central banks gathered momentum, amid soft economic data, which kept prices steady over the psychological level of $1,500.
