The rupee settled at 71.56 against 71.80 at the previous close. The
local unit moved in 71.5550-71.8075 per dollar band intra-day.
The Indian rupee rose for the first time in three sessions against the
dollar, tracking a rise in local shares that gained for a fourth session
today, boosting hopes of foreign fund inflows. Rupee is helped by
some hopes of inflows in local equities, tracking strength in the
global equity market amid improved appetite, but uptick in oil
limited rupee’s appreciation. there is lot of uncertainty related to
what action can be taken in the monetary policy this week because
although the inflation remains under control, current crude oil price
movement remains a cause of concern.
Global Currency
The dollar could be vulnerable if President Donald Trump comes out
swinging on trade and risks another government shutdown in his
State of the Union address. The absence of progress in talks between
British and European officials over Brexit is also weighing on both
currencies vis-a-vis the dollar, amid rising risks of the U.K. leaving the
EU in March without a safety net of transitional arrangements to
guarantee smooth trade between the two.
The EUR/USD pair fell to $1.1416. European markets face a stiff test
of sentiment this morning from a raft of service and composite
purchasing managers' surveys, and from euro-zone retail sales data
for December.
Global Markets
Oil prices rose on Tuesday as investors expect U.S. sanctions on
Venezuela and production cuts led by OPEC and its allies to head off
any glut, but data showing a decline in U.S. factory orders weighed
on the market.
Gold were close to a near one-week low on Tuesday, as a stronger
dollar and renewed interest in riskier assets dampened demand.
Spot gold edged 0.1 % higher to $1,313.02 per ounce.
