India Rupee Snaps 3-Day Fall On Corporate Dollar Sales

The rupee settled at 69.29 against 69.67 at the previous close. The local unit moved in 69.25-69.73 per dollar band intra-day.
The Indian rupee rose for the first time in four sessions, supported by banks’ dollar sales for their corporate clients and strong local shares. Dollar sales likely by a large corporate helped rupee gain more in late trade, while exporters’ greenback sales and upbeat market sentiment in anticipation of likely inflows aided rupee in afternoon session, But key events that will happen tomorrow will keep rupee’s trading range in coming days wide, while any further uptick in oil prices will be closely watched.

The dollar was shackled on Tuesday by a combination of weak U.S. economic data and gains for commodity-linked currencies such as the Canadian and Australian dollars which drew support from an extended surge in crude oil prices.
The euro is still struggling for direction early Tuesday in Europe amid reports that the U.S. administration is preparing to impose fresh tariffs on European Union in response to what it perceives as unfair subsidies to aerospace giant Airbus. The news is an unwelcome reminder that the settling of one trade war with China may simply free the U.S. up to launch another with its other major trading partner and commercial rival, posing a fresh threat to a world economy that is slowing down.

Oil hit a five-month high above $71 a barrel on Tuesday, supported by concern that violence in Libya could further tighten supply, although Russian comments signalling willingness to pump more dampened the rally.
Gold edged up Tuesday to hold near its highest in more than a week, supported by a retreating dollar and by increased buying by central banks. Spot gold XAU= was up 0.4 percent at $1,301.64 per ounce.

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