USD/INR opens down but soon rebounds tracking firm Dollar

The Indian rupee little changed at 68.62 pair now at 68.68 against 68.6575 previous close.
Pair to tip in 68.55-68.90 range today.
Dollar/rupee opened down Tuesday but soon rebounded tracking the firmness in the dollar lower crude prices are weighing on the pair, they added. The USD index is higher and that is pushing up USD/INR. The dollar regained footing against its other counterparts after an upbeat US jobs data reduced bets on aggressive rate cuts by the Fed in the upcoming months. The USD index was at 97.40, its highest since 19 June. Investors now focus on the upcoming Fed Chair Jerome Powell's testimony to the Congress due on Wednesday and Thursday.

The dollar traded near a three-week high on Tuesday against its peers, as investors reduced bets on aggressive U.S. interest rate cuts ahead of the Federal Reserve chairman's testimony to Congress on the economy.
Sterling was pinned near a six-month low versus the dollar on speculation the Bank of England will soon join other major central banks in easing monetary policy in response to growing worries about the global economy and Britain's exit from the European Union. Investors will closely analyse Powell's comments when he delivers his semi-annual monetary report before Congress to gauge how far the U.S. central bank will lower interest rates.

Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although the potential for conflicts in the Middle East offered support to prices.
Gold prices fell on Tuesday as the dollar held near multi-week highs after investors reduced bets on an aggressive U.S. interest rate cut this month.

Research