USD/INR trades choppy after flat open ahead of election results

The Indian rupee little changed at 69.73 pair now at 69.78 against 69.7350 previous close.
Pair to tip in 69.65-70.00 range today.
Dollar/rupee fluctuated after opening little changed on Tuesday as dealers stayed cautious ahead of election results due on Thursday. Investors are weighing options of the actual results coming in line with exit polls and otherwise. elevated oil prices are weighing on the rupee, and therefore, despite being cautious, the trades in dollar/rupee will largely be tilted to the upside. The dollar index, which tracks the movement of greenback against a basket of six major currencies.

The dollar held near a 2-1/2-week high on Tuesday, supported by higher U.S.-yields and as intensifying trade frictions between the United States and China boosted appetite for the safe-haven dollar. The dollar has established itself as a safe-haven and it attracts demand in times like this, with equities falling and market volatility rising. The bounce by Treasury yields is another factor supporting the dollar. The recent drop by the 10-year yield seemed overdone, and with Fed's Powell not providing clear hints of a rate cut this year.
The euro was effectively flat at $1.1166 after slipping to $1.1150 the previous day, its lowest since May 3. The single currency is expected to remain on a nervous footing through the May 23-26 European parliamentary election.

Oil prices edged up on Tuesday on escalating tensions between the United States and Iran and on signs that producer club OPEC will continue withholding supply this year. However, gains were checked by concerns that a prolonged Sino-U.S. trade war.
Gold eased on Tuesday after touching a more than two-week low in the previous session, as increasing bets that the U.S. Federal Reserve will not cut interest rates this year boosted the dollar which usurped bullion's safe-haven appeal.

Research