The Rupee opened weaker against the dollar as the dollar index rose to an almost two-week high as the Japanese yen surprisingly trimmed its gains ahead of a pivotal policy decision from the Bank of Japan due to be released today. Japan's central bank is expected to raise interest rates for the first time in 17 years in today's meeting. The central bank is expected to exit its negative interest rate policy and raise its benchmark rate to 0% from (-)0.1% when it makes its announcement today. Fed funds futures traders currently forecast a 99% probability of the Fed keeping the benchmark interest rates unchanged in the upcoming meeting, according to the CME FedWatch Tool. However, 50.8% of Fed funds futures traders expect the Fed to start cutting rates in June. The dollar index, which measures the strength in the greenback against a basket of six major currencies, was at 103.61 compared with 103.58 on Monday. It was 103.45 on Friday. A rise in crude oil prices on Monday is also expected to weigh on the Indian unit, dealers said. Oil prices climbed about 2% to a four-month high on Monday on lower crude exports from Iraq and Saudi Arabia. Crude prices were also pushed higher on signs of stronger demand and economic growth in China and the US. The May contract of Brent Crude Oil on the Intercontinental Exchange was at $86.88 a bbl. It closed at $86.89 a bbl on Monday and $85.34 a bbl on Friday. Gold prices saw slight gains on Monday amid a quiet session as investors prepare themselves for monetary policy decisions by major central banks this week. Investor focus is on the Fed's monetary policy outcome, due Wednesday. Apr gold futures (ounce): $2,164.3 Monday vs $2,161.5 Friday.......
The US dollar weakened sharply against other major currencies after data showed that the US economy suffered a record contraction in Apr-Jun, while jobless claims rose in the week ended Saturday also rose.The US unit also extended its decline globally on Thursday after Trump raised the possibility of delaying presidential election in the US, scheduled for November.European Stocks ended lower on Thursday due to mounting concern over sluggish economic recovery and a possible second wave of the COVID-19 pandemic.Germany reported its worst decline in GDP since 1970, with the Eurozone’s largest economy shrinking 10.1% quarter-on-quarter in Apr-Jun.Corporate earnings were high on investors' agenda on Thursday.In the US, Most share indices ended lower on Wednesday following bleak economic data.Lack of progress in talks between Congressional Democrats, Republicans and the White House on a new coronavirus aid package also weighed on sentiment.Gold futures settled lower on Thursday after nine consecutive days of gains, with the bullion retreating from a record rally as traders booked some profit.......