The rupee settled at 70.74 against 69.58 at the previous close. The local unit moved in 70.14-70.74 per dollar band intra-day.
Government bond prices ended down Monday as dollar/rupee appreciated beyond Rs 70 a dollar after the government scrapped Article 370 amid ongoing trade tensions between the US and China. Global investors were spooked after the government scraps special status given to the disputed Kashmir region, leading to selloff across asset classes causing rupee to depreciate sharply on Monday. Rupee depreciating beyond Rs 70/$1 and global risk off sentiments due to Sino-US trade conflict and scrapping of Article 370.
China let its yuan weaken below 7 to the dollar on Monday, an 11-year low, as the escalation in the U.S.-China trade war shook currency markets. Fearful of the impact on global growth, investors dumped export-oriented Asian currencies and rushed into safe havens, with the Japanese yen surging to a seven-month high.
Japan's yen, which investors buy in times of risk aversion, rose 0.7% to its highest since a January flash crash. The yen was last up 0.5% at 106.04 JPY=EBS , after hitting 105.78 earlier. Japan's top currency diplomat, Yoshiki Takeuchi, warned that Tokyo was ready to intervene if yen gains threatened its export-reliant economy. Swiss franc, another safe-haven currency, strengthened 0.4% to 1.0864 francs per euro EURCHF=EBS , a new 25-month high.
Oil prices fell on Monday on global growth concerns after U.S. President Donald Trump threatened China with more tariffs, which could limit crude demand from the world's two biggest buyers.
Gold rose to a more than six-year high on Monday, gaining over 1%, as an escalating trade conflict between the United States and China sent investors scurrying for the safety of bullion. Spot gold XAU= was up 1.2% at $1,457 per ounce.
Global Markets at one Glance
Markets at 5.00pm
Key Events of the Day
Share this post?
Download RouteForex Mobile App
And Track Your Entire Portfolio
Request a Call Back
Your submission is received and our Expert will contact you soon