USD/INR ends down as exit poll results boost FII optimism

The rupee settled at 69.7350 against 70.22 at the previous close. The local unit moved in 69.35 -69.80 per dollar band intra-day.
USD/INR ends down as exit poll results boost FII optimism Dollar/rupee in both onshore and offshore markets traded down during Monday on likely FII inflows into the local stocks after exit polls signalled the return of the ruling coalition. Dollar/rupee in the non-deliverable forward (NDF) market maturing in one month traded at Rs 69.77/$1 during European trades and Rs 70.50/$1 at start of Indian market Monday. The pair traded at Rs 70.53/$1 at close of Indian market on Friday.

The dollar is pushing toward the two-year high it hit in April in early trading in Europe on Monday, after election victories for business-friendly incumbents in Australia and India offset ongoing worries over trade relations between the U.S. and China. Over the weekend, a number of U.S. tech companies said they had stopped supplying telecom giant Huawei components for its telecom equipment, as a consequence of last week’s ruling by the U.S. administration.
Sterling is struggling to recover from its slump on the revival of fears over a “hard Brexit” if the Conservative Party ditches Prime Minister Theresa May in favor of a high-profile Brexiteer. It has picked up a little in response to comments by opposition leader Jeremy Corbyn appearing to move closer to endorsing a second referendum.

Gold fell to a more than two-week low on Monday as investors preferred the safety of the dollar, with the currency underpinned by robust economic reports out of the United States, even as geopolitical risks and trade tensions persist.
Oil hit multi-week highs on Monday after OPEC indicated it was likely to maintain production cuts that have helped boost prices this year, while escalating Middle East tensions provided further support.

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