The Rupee closed weak pressured by weakness in Asian currencies and dollar purchases by state-run banks. The Reserve Bank of India (RBI) has been absorbing dollars in the spot market amid persistent foreign inflows in the country's debt and equity markets. That has capped gains in the rupee over the last few trading sessions. Asian currencies were mostly lower ahead of the policy outcome from two major central banks this week. The Bank of Japan's policy decision is due on Tuesday and the central bank is believed to be on the brink of ending its negative rates regime. Meanwhile, in the Fed's review on Wednesday, investors will assess if policymakers change their projections for rate cuts for the year. The Fed in December projected 75 basis points of easing in 2024. The dollar index , which measures the U.S. currency against six other major currencies, fell 0.029% at 103.430. It has risen about 2% this year as the U.S. economy has fared better than expected, leading investors to rein in bets that the Fed will cut rates quickly and deeply in 2024. The yen has had a whirlwind few weeks, weakening to 150.88 to the dollar last month. It then rebounded to a one-month high of 146.48 at the start of March, on the back of stronger than expected economic data and rising bets that the BOJ is preparing to end eight years of negative interest rates. The euro last bought $1.0893, up 0.05%, while sterling was at $1.2735, down 0.04% ahead of the Bank of England, meeting on Thursday when the central bank is expected to hold rates at 5.25%. Australia's central bank is due to meet on Tuesday and is widely expected to hold rates steady. The Australian dollar rose 0.10% against the U.S. dollar to $0.657. The U.S. dollar rose 0.09% against the Swiss franc. Some investors think the Swiss National Bank could cut interest rates on Thursday, with inflation having long been within its 0-2% target range. Brent crude briefly topped $86 per barrel on Monday for the first time since November, before pulling back, as Ukraine stepped up its attacks on Russian energy infrastructure. Brent crude oil futures for May delivery were up 51 cents at $85.85 a barrel at 1333 GMT.......
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.......