The Rupee closed stable on Tuesday even inspite of a slump in the US dollar against other major currencies and the pound sterling rose in early Asian trade, as the UK currency extended its recovery a day after the British government reversed a plan to cut the highest rate of income tax. On Monday, Prime Minister Liz Truss’s government scrapped plans to reduce tax on the UK’s higher earners. Back home, preliminary data released by the commerce and industry ministry on Monday showed India's merchandise trade deficit eased to $26.72 bln in September from $27.98 bln in August mainly on account of a fall in oil imports, thus, supporting the Indian currency. The premium on the one-year dollar/rupee forwards is seen rising, tracking a fall in US Treasury yields.......
The Sterling pound rose in early Asian trade, weighing on the broader US dollar index, as the UK currency extended its recovery a day after the UK government reversed a plan to cut the highest rate of income tax. The dollar index, which measures the greenback against a basket of major currencies, was slightly lower in early trade today after falling sharply on Monday. The yield on the 10-year benchmark US Treasury note plunged on Monday after the UK government withdrew planned tax cuts which boosted UK bonds and as data showed slowdown in the US manufacturing activities. European share indices settled slightly higher on Monday, recouping early losses, led by gains in oil and gas stocks.......