The Rupee opened weak fuelled by news of U.S.-India trade talks, is likely to face resistance at open on Tuesday amid the dollars rally and hedging interest from importers. The rupee, bolstered by support from the Reserve Bank of India to stay above the 89 mark, briefly strengthened past 88.60 on Monday after news broke of an Indian trade delegation's visit to the U.S. The market's looking for "real deliverables now" - that’s what will provide proper support to the currency amid persistent hedging from importers, he said. He did note that things have turned a shade better for the rupee lately, largely due to the RBI's dogged defence of the and a flicker of positive momentum in equity flows. Foreign investors bought Indian shares for four sessions in a row through last Friday - a turnaround from the consistent outflows seen before. Monday's data will be available later in the day. A shift in tone from U.S. President Donald Trump toward China lifted the dollar on Monday, tempering trade concerns, while political uncertainty in Europe and Japan kept the euro and yen under pressure. After announcing 100% tariffs on China on Friday, Trump struck a calmer note on Sunday. On Monday, U.S. Treasury Secretary Scott Bessent expressed confidence that the standoff could be "de-escalated". The U.S. dollar has recovered, with markets viewing Trump's latest tariff threat a tactical move to strengthen his hand ahead of his planned meeting with Chinese President Xi Jinping later this month, MUFG Bank said in a note. The dollar held steady on Tuesday as U.S. President Donald Trump's watered down rhetoric against tariffs on China and a potential meeting with his Chinese counterpart raised hopes of de-escalation in tensions between the two economic heavyweights. U.S. Treasury Secretary Scott Bessent also said on Monday that Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October. All that breathed new life into the dollar, which in turn kept the euro below the $1.16 level to trade at $1.1566. Sterling eased 0.06% to $1.3328, while the New Zealand dollar fell anew to hit a six-month low of $0.57145. Against a basket of currencies, the dollar ticked 0.04% higher to 99.34. The Aussie was little changed at $0.6516, while the yen fell roughly 0.2% to 152.57 per dollar. Markets in Japan returned from a long weekend on Tuesday to lingering political uncertainty at home, after Sanae Takaichi's bid to become the nation's first female prime minister was thrown into doubt on Friday when her ruling party's junior coalition partner quit. While the move halted the yen's steep slide as investors assessed the chances of huge fiscal largesse under the new premiership, it continues to languish near eight-month lows. Oil prices rose on Tuesday as early signs of a thaw in U.S.-China trade tensions bolstered market sentiment, alleviating concerns over global fuel demand. U.S. Treasury Secretary Scott Bessent said on Monday President Donald Trump remains committed to meeting Chinese President Xi Jinping in South Korea later this month as both countries try to de-escalate tensions over tariff threats and export controls. Brent crude futures rose 18 cents, or 0.28%, to $63.50 a barrel by 0000 GMT, while U.S. West Texas Intermediate crude was at $59.65 a barrel, up 16 cents, or 0.27%.......
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