Rupee Breaks Two-Day Gain To Slip Below 70 Mark Against Dollar: 10 Things To Know

Rupee Breaks Two-Day Gain To Slip Below 70 Mark Against Dollar: 10 Things To Know
The rupee had appreciated 0.7% in past two trading sessions
  1. The rupee opened lower at 69.83 and fell by as much as 55 paise to touch 70.23 against the dollar during Tuesday's session, before settling two paise higher from that level for the day.
  2. Strong demand for the dollar from importers also put pressure on the rupee in the forex market.
  3. Crude oil prices rose on Tuesday, supported by hopes for China-US trade talks in Beijing. Brent crude futures - the international benchmark for crude oil - were last seen trading 1.3 per cent higher at around $58 per barrel on Tuesday.
  4. High crude oil prices tend to inflate the oil import for the country, which meets more than 80 per cent of its petroleum requirements through imports.
  5. Analysts say they will monitor US-China trade talks for direction in currency markets.
  6. “Oil prices have been rising recently on hopes that US-China talks in Beijing would bring a halt to trade disputes between the world's biggest economies,” said VK Sharma, head PCG and capital markets group, HDFC Securities.
  7. "However the talks are still underway and timings are not being informed for the conclusion," he added.
  8. The dollar index - which measures the greenback against six major peers - was up about 0.3 per cent, moving away from a two-and-a-half-month low hit in the previous session, after Federal Reserve chief Jerome Powell hinted that the US central bank could pause its multi-year rate-hike cycle.
  9. Domestic stock markets finished higher after swinging between gains and losses, as caution prevailed among investors ahead of the key corporate earnings due this week. The Sensex ended 130 points - or 0.4 per cent - higher at 35,980, while the Nifty regained the 10,800.
  10. Meanwhile, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Monday the central bank is monitoring liquidity and will ensure that there is enough to meet the needs of the economy.
(With agency inputs)
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