The rupee settled at 73.12 against 72.4350 at the previous close. The local unit moved in 72.76-73.13 per dollar band intra-day.
Dollar/rupee ended higher Monday on buying by foreign banks amid likely FII outflows from local stocks amid strong dollar. Overseas investors pulled out of local equities and dollar index is also strong after the upbeat US jobs data. Dollar/rupee in the offshore market extended gains during evening trades Monday tracking a strong upward movement in the Dollar.
The Dollar gains will probably peter out after this week’s U.S. mid-term elections, given the likelihood a divided Congress will stymie further reform, says Jasslyn Yeo, global market strategist at the money manager in Singapore. The dollar’s outlook is also worsening as a build-up in long positions suggests a reversal may be overdue.
Sterling GBP held near the day's highs, up 0.3 percent at $1.3001 on a Sunday Times report that an all-UK customs deal will be written into the agreement governing Britain's withdrawal from the EU.
The EUR/USD is trading in a narrow range in the wake of the week, quite different from the action it experienced last week. The Euro enjoyed the comeback of global stocks and the consequent downfall of the US Dollar on the risk-on sentiment.
Oil prices fell on Monday as U.S. sanctions against Iran's fuel exports were softened by waivers allowing major buyers to import Iranian crude for a while, while Tehran said it would defy Washington and continue to sell. Brent crude oil was down 25 cents a barrel.
Gold held a narrow $5 range on Monday as investors were cautious ahead of the U.S. midterm elections, which will determine whether the Republican or Democratic Party controls Congress. Spot gold was little changed at $1,232.00 per ounce.
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