USD/INR opens up on month-end dlr demand, strong overseas trend

The Indian rupee little changed at 68.75 pair now at 68.72 against 68.73 previous close.
Pair to tip in 68.60-69.80 range today.
Rupee opened higher Tuesday tracking higher crude oil prices amid strengthening dollar ahead of Federal Open Market Committee policy due on Wednesday. Dollar is strong ahead of FOMC policy. Oil is trading up. Month-end dollar demand will support spot. The greenback extended gains against its major counterparts ahead of the start of FOMC meet later today. The Fed is expected to cut rates by 25 basis points on Wednesday, but this is more likely to be a one-off than the first in a series of several rate cuts.

The pound hit a new 28-month low early in Asia trade as investors grew increasingly nervous about the prospects of a no-deal Brexit under new British Prime Minister Boris Johnson. policy is likely to set the tone for currency markets in coming months as central banks from Australia, New Zealand, Europe and possibly Britain are expected to cut rates due to low inflation and risks to global economic growth. Sterling GBP=D3 briefly slipped to $1.2209, the lowest since March 2017.
The yen held near a three-week low on Tuesday as pared expectations for aggressive Federal Reserve cuts supported the dollar and ahead of a Bank of Japan meeting, which is seen as a key test for policymakers amid a global monetary easing cycle.

Oil prices extended overnight gains on Tuesday amid widespread expectations the U.S. Federal Reserve will cut interest rates for the first time in more than a decade this week. Brent crude LCOc1 rose 30 cents, or 0.5%, to $64.01 a barrel.
Gold prices firmed on Monday on expectations of a rate cut by the Federal Reserve this week, while investors awaited cues on the future trajectory of monetary easing by the U.S. central bank.

Research