India Rupee At Over 7-Mth High As Trade Gap Narrows; RBI Watched

The Indian rupee little changed at 68.91 pair now at 68.8525 against 69.09 previous close.
Pair to tip in 68.75-69.10 range today.
The Indian rupee rose to an over seven-month high against the dollar in early trade and rose above the 69 level for the first time this year, after the nation’s trade deficit narrowed to its lowest in almost oneand- a-half years. Narrow trade deficit data and expectations of foreign fund inflows in local equity and bonds markets will keep the bias on the rupee on the upside. However, the rupee may face a strong resistance at 68.80, from where we might see a reversal.

The dollar licked its wounds on Monday after soft U.S. data increased bets the Federal Reserve will cut rates later this year while the pound hovered near nine-months high on hopes for a delay in Britain's exit from the European Union. The dollar's index against a basket of six major currencies .DXY =USD stood at 96.564, having shed 0.81 percent last week, the biggest loss since late August.
The British pound stood not far from last week's nine-month high of $1.3380, supported by relief that a no-deal Brexit will likely be averted. It last stood at $1.3292. It is not clear if British Prime Minister Theresa May can secure a support for her Brexit deal in the parliament, which has twice rejected her offer by a wide margin.

Oil prices dipped on Monday amid concerns that an economic downturn may dent fuel consumption, but crude markets remain broadly supported by supply cuts led by producer group OPEC and U.S. sanctions against Iran and Venezuela.
Gold prices slipped on Monday in Asia ahead of a Federal Reserve meeting that is expected to shed more light on the outlook for U.S. interest rate hikes this year. Gold Futures were down 0.3% at $1,298.65.

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