The rupee settled at 71.58 against 71.21 at the previous close. The local unit moved in 71.08-71.58 per dollar band intra-day.
The Indian rupee crashed to record low against the dollar for a fifth straight session, tracking similar sell-off across other emerging market peers amid surging global crude oil prices. However, further decline in the local currency was limited on likely intervention from the central bank. Nair expects the rupee in a 70.70-72.00 to a dollar range this week.
Global Currency
The dollar extended gains across the board on Tuesday, rising nearly half a percent, as concerns about a possible escalation in trade conflict between the United States and China prompted investors to dump emerging market currencies. Investors remained on edge amid fears over the impact on global growth from U.S. President Donald Trump’s protectionist trade policies.
The yen rose 0.04 percent to 111.07 yen, giving up some gains after touching as high as 110.90.
The euro was weaker against the firmer dollar, with EUR/USD down 0.45% to 1.1567. The pound was also pressured lower, with GBP/USD sliding 0.33% to 1.2829 as worries over the prospect of a no-deal Brexit continued to weigh.
Global Markets
Crude oil markets rallied slightly during the trading session on Monday, as Americans were away for Labor Day. Overall, the market looks as if it is trying to rally from here, and I think that longer-term there may be reason to think that this market could go higher due to the concerns about the Iranian supply coming off-line.
Gold prices climbed on Tuesday morning in Asia, driven in part by an escalating currency crisis in Argentina. The peso hit a record low on Monday and President Mauricio Macri vowed to employ “emergency” measures to resolve the crisis. Gold futures for December delivery edged up 0.02% to $1,207
