The rupee settled at 69.87 against 69.83 at the previous close. The local unit moved in 69.71-69.93 per dollar band intra-day.
Dollar/rupee ended higher Thursday on buying by nationalised banks likely on behalf of oil importers for the month-end dollar payments amid a strong greenback. Outflows from local stocks due to selling by FIIs also aided the rise in the spot pair. PSBs were at the buy-side with month-end dollar demand a factor. Also, the dollar is strong on the back of upbeat US data. In addition, some amount of FII outflows were also seen in equities. Dollar/rupee ended at Rs 69.87/$1 Wednesday compared to previous close of Rs 69.83/$1.
The dollar edged towards a one-week high on Thursday as the trade tensions between China and the United States prompted investors to seek shelter in the greenback. While U.S. money markets are pricing in roughly two rate cuts by January 2020 and the bond yield curve inverted further overnight, signalling rising recessionary risks for the world's biggest economy, demand for dollars show no signs of abating.
The European Commission wrote on Wednesday to the Italian government asking it to explain a deterioration in the country's public finances, setting the stage for a possible clash. The single currency was last at 1.1124, recovering somewhat after falling 0.8% in three straight losing sessions.
Gold prices eased to a one-week low on Thursday as investors opted for dollars and U.S. government bonds as a hedge against trade tensions between the United States and China.
Oil prices fell on Thursday on fears of a global economic slowdown due to a U.S.-China trade war but losses were capped by a tightening crude market and rising political tensions in the Middle East. U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 12 cents.
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