The Indian rupee closed nearly flat on Monday, giving up early gains despite lower oil prices and a weaker dollar, as traders stayed cautious ahead of Tuesday's US midterm elections. The rupee closed at 94.90 per dollar, little changed from its close at 94.95 in the previous session. The lower oil prices and weaker dollar, though, did little to aid the rupee as traders remained cautious about how global factors will shape up. he dollar eased on Monday as oil prices tumbled and equities climbed ahead of a week full of catalysts, including the US Midterm Elections, a host of data on the US labor market and multiple central bank rate decisions.Crude prices tumbled about 6% as continuing talks between Iranian and Qatari officials on ending the US-Israeli war with Iran lifted hopes for reduced disruptions to supply from the Middle East. The easing of oil prices helped buoy stocks after the Nasdaq suffered in October its biggest monthly percentage decline since March 2025, largely due to growing concerns about massive spending by companies on the emerging AI technology. The pound was broadly steady against both the dollar and euro on Monday as investor attention shifted from last week's UK budget to an expected Bank of England rate hike on Thursday, the central bank's first since August 2023. The daily drop in oil prices slightly lifted investors' risk appetite in currency markets, which weighed on the dollar . Sterling was last slightly higher against the greenback at $1.3417, and dipped to 83.53 pence against the euro , which strengthened against the weaker dollar. The Canadian dollar steadied near a six-week high against its US counterpart on Monday as oil prices tumbled and investors weighed positive signals on prospects of a trade deal between the US and Canada. The loonie was trading nearly unchanged at 1.3975 per US dollar, or 71.56 US cents, after touching on Friday its strongest intraday level since September 16 at 1.3940. Gold prices rose more than 2% on Monday, rebounding from a one-year low hit in ?the previous session, supported by a retreat in oil prices that tempered inflation worries, while investors awaited US midterm elections later this week. Spot gold rose 2.1% to $3,957.19 per ounce at 1049 a.m. ET (1411 GMT), having ended 3.6% lower and hit its lowest since October 2025 on Friday. US gold futures for December delivery rose 1.77% to $3,967.40 per ounce. Spot silver climbed 3.7% to $50.91 per ounce after breaking below $50 for the first time since late November 2025 in the last session. Spot platinum rose 1.9% to $1,457.96, while palladium was steady at $976.13, after earlier bouncing from their lowest levels in 13 and 17 months, respectively, on Friday.
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The euro rebounded on Tuesday and was on pace for its strongest move higher in a month after falling to its lowest in 17 months in the prior day, as a pullback in French government bond yields cooled fears about strain in euro zone debt markets. The euro zone's currency climbed 0.28%, on track for its biggest daily gain since September 3, at $1.1252. the currency had slid to its lowest since May 2025 on Monday at $1.116, following a drop of more than 1% in the prior week, its fourth straight weekly decline. The dollar index , which measures the greenback against a basket of currencies, fell 0.26% to 101.89 and was on pace for its biggest daily drop since September 25. Bond markets around the world have seen yields rise due to expectations of sharp central bank rate hikes as energy prices have jumped due to the US-Israeli war with Iran and fanned inflation, as well as concerns about government finances. France is at the heart of the European market concerns. The French government is seeking to enact an unpopular 2027 budget to lower its deficit and contain its record-high debt load, a tall order in a deeply divided parliament as political factions position ahead of next year's presidential election. With inflation already rising on soaring energy costs and higher yields increasing household and corporate borrowing costs, further euro weakening could leave the European Central Bank caught between fighting inflation and calming bond markets.
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