USD opens at 2-wk low on inflow hopes post exit poll results

The Indian rupee little changed at 69.49 pair now at 69.59 against 70.22 previous close.
Pair to tip in 69.40-69.80 range today.
Dollar/rupee opened at almost two weeks low on Monday on likely FII inflows into the local stocks after exit polls signalled the return of the ruling coalition. Rupee opened high as the exit poll results have come in better than expected which attracts overseas inflows into the local stocks. Exit polls predicted a majority for the Bharatiya Janata Party and its allies after the nation's six-week long general election ended Sunday. However, higher crude and firmness in the dollar will likely arrest further gains in the rupee.

NSEI surged 2.22% at the open after exit polls predicted PM Narendra Modi would win a comfortable majority in the general election, but investors said they were awaiting major reforms. The partially convertible rupee INR=D4 was trading at 69.49/50 per dollar at, after rising to 69.3550 earlier, making it up 1.2 percent on the day. The gain, if sustained, would be the highest since December. The BJP, he added, had overcome "disastrous macroeconomics with effective microeconomics",.
U.S. President Donald Trump said his tariffs on Chinese goods are causing companies to move production out of China to Vietnam and other countries in Asia, and added that any agreement with China cannot be a "50-50" deal.

Oil rose to multi-week highs on Monday after OPEC indicated it will likely maintain production cuts that have helped support prices this year, while tensions continued to escalate in the Middle East. Brent crude LCOc1 was up by 96 cents, or 1.3%, at $73.17 a barrel.
Gold steadied on Monday, trading near a two-week low hit in the previous session, as strong U.S. economic data underpinned the dollar amid geopolitical as well as trade tensions.

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