The Rupee closed stronger to the dollar as the USD slumped on expectations that the US Federal Reserve may not hike interest rates at its Jun 13-14 meeting. Fresh US economic data on Thursday also supported the officials' comments. In the US, manufacturing contracted for the seventh straight month as new orders continued to fall amid higher interest rates. This is the longest contraction seen since the Great Recession. crude oil prices rose in early trade and this might cap the gains for the rupee. Oil prices rose ahead of a meeting of the Organization of the Petroleum Exporting Countries and allies, including Russia, on Sunday. Market participants fear the organisation may decide to cut production, boosting crude oil prices. The premium on the one-year dollar/rupee forwards is likely to rise, tracking a fall in US Treasury yields.......
The dollar index rose slightly in early trade today as investors shifted their focus to key jobs data from the US, due for release on Friday. Most Asian equity indices were up in early trade today as the bill to raise the US government's debt limit and cap government spending was passed in the House of Representatives by a wide margin. The bill will now be sent to the Senate, just days before Monday's US default deadline. Oil futures settled lower on Wednesday as weak economic data from China led to fear of a drop in demand from the world's largest oil consumer.......