USD/INR opens up on strong dlr, higher crude oil prices and gulf tensions bolster safe haven

The Indian rupee little changed at 68.89 pair now at 69.02 against 68.9550 previous close.
Pair to tip in 68.80-69.10 range today.
Dollar/rupee opened up Monday as bets on an aggressive Fed rate cut faded after comments from Fed officials while higher crude oil prices further aided dollar demand. As bets on 50 bps rate cut by Fed this month reduced, dollar rose. Crude is also trading higher. Federal Reserve Bank of Boston President Eric Rosengren said he doesn't believe the US economy needs an interest rate cut, given the positive data thats rolled in since mid-June. Market is still pricing in a 25 basis points rate cut at the upcoming policy due later this month.

The dollar drifted higher on Monday as investors tempered their expectations for deep U.S. interest rate cuts this month and heightened Middle East tensions supported safe-haven assets. While currency-market focus will centre on global central bank decisions scheduled for the next two weeks, traders are also watching for developments in U.S.-China trade negotiations and Wall Street earnings.
Investors are waiting to see if Boris Johnson wins the British Conservative Party's leadership ballot. The pound GBP=D3 held around $1.2502, staying on a slippery slope since mid-March as fears of a hard Brexit have gathered.

Gold prices gained on Monday following a steep fall in the previous session as tensions in the Middle East and weaker financial markets supported the metal, while a stronger dollar kept a lid on gains. Spot gold XAU= was up 0.2% at $1,427.26 per ounce.
Oil prices rose on Monday amid high tensions in the Middle East after a British tanker was seized by the Iranian military at the end of last week. WTI fell over 7% and Brent fell more than 6% last week.

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