The rupee settled at 70.81 against 70.74 at the previous close. The local unit moved in 70.4775-70.88 per dollar band intra-day.
Dollar/rupee ended at over five-month high Tuesday as risk-off sentiments hardened tracking the flaring US-China trade war after US administration labelled China as a currency manipulator. Sharp gains in the spot pair was capped by selling by nationalised banks likely on behalf of Reserve Bank of India to curb sharp volatility in the spot. The trade war between the US and China has now become a fully blown currency war after US branded China as currency manipulator. Risk-sentiments have weakened considerably.
China’s yuan steadied on Tuesday after overnight declines, but market sentiment remained fragile a day after a steep selloff in global markets spurred by fears over the escalating U.S. - China trade war. China's offshore yuan extended the previous day's declines and briefly weakened to 7.1382, the lowest since international trading in the Chinese currency began in 2010. But it pulled back to 7.0690 after Beijing's firmer-than-expected yuan fixing on Tuesday.
The pound was up 0.5% at $1.2199 GBP=D3 , but not too far from the 31-month low it reached last week. Against the euro, sterling hit a new 23-month low on Tuesday of 92.49 EURGBP=D3 , but was last up by 0.5% at 91.79 pence.
Oil prices rebounded slightly on Tuesday from big falls in recent sessions, but Brent crude remained near seven-month lows around $60 a barrel due to escalating trade tensions between China and the United States. Brent prices have lost more than 9% in the past week.
Gold steadied on Tuesday after touching a six-year high as simmering tensions between Washington and Beijing propelled investors towards safe-haven assets. U.S. gold futures GCcv1 were down 0.2% at $1,474.10.
Global Markets at one Glance
Markets at 5.00pm
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