USD/INR opens up on oil bids, strong dlr

The Indian rupee little changed at 68.99 pair now at 69.02 against 68.9125 previous close.
Pair to tip in 68.90-69.15 range today.
Dollar/rupee opened up Tuesday on buying by nationalised banks likely on behalf of oil importers amid a strong dollar. Dollar is strong and nationalised banks are buying most likely for oil importers. PSBs including Bank of India, Bank of Baroda bought dollars. The dollar gained against major counterparts Tuesday on expectation of a smaller interest rate cut by the US Federal Reserve at the end of this month. Federal Reserve Bank of Boston President Eric Rosengren said he doesn't believe the US economy needs an interest rate cut.

Sterling was on the back foot on Tuesday as investors worried Boris Johnson, the frontrunner to become the UK's next prime minister, would trigger a "hard Brexit" from the European Union, widely seen as a major risk for the British economy. Sterling has fallen 3.5% versus the dollar in the past three months due to uncertainty about how Britain will avoid a no-deal exit from the EU. Britain's Conservative Party will announce the results of a leadership election on Tuesday, with Johnson widely expected to win.
The euro traded near session lows due to growing expectations European Central Bank President Mario Draghi will signal a rate cut in September at a policy meeting later this week to keep inflation expectations on track.

Gold prices fell in early Asian trade on Tuesday as the dollar rose to a near one-week high on expectation of a smaller interest rate cut by the U.S. Federal Reserve at the end of this month. Spot gold XAU= was down 0.5% at $1,417.11 per ounce.
Oil prices inched lower on Tuesday as the International Energy Agency (IEA) said it would act quickly if needed to keep the market supplied amid tension in the Middle East and traders eyed a weaker.

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