The Indian rupee closes flat after seesawing in a narrow range against the dollar on Tuesday before ending little changed, while underlying sentiment remained weak. The rupee ended at 95.1150 per dollar, up less than 0.1% from 95.1850 on Monday. Persistent external pressures from higher oil prices and equity outflows have left the currency reliant on Reserve Bank of India intervention for support. Foreign investors have net sold around $8.5 billion of Indian equities in the last two months, a major drag on the rupee. Equity market volatility, currency concerns and the return on offer from dollar-denominated fixed income investments are encouraging investors to reassess equity-concentrated portfolios. The dollar firmed against major currencies including the euro, yen and sterling on Tuesday amid market positioning ahead of a series of central bank meetings for fresh clues on the economic outlook and the path of interest rates. The Federal Reserve is set to announce its latest policy decision on Wednesday, the European Central Bank is up on Thursday, and the Bank of Japan rounds out the week on Friday. All three are expected to keep rates on hold, so the focus will be on any hints that policymakers give on their outlooks. The dollar has also stabilized after it came under pressure following a selloff in high-flying AI stocks last week. The euro was down 0.25% against the dollar at $1.1144. The yen was among the best-performing major currencies last week, strengthening around 0.75% on the dollar, its biggest weekly gain since early September, as AI jitters in the equity market spurred a rush into the currency. The dollar was up 0.15% to 157.73 against the Japanese yen . Sterling weakened 0.16% against the dollar to $1.3317. The pound dipped against the dollar and held near a 17-month high versus the euro a day ahead of the British Budget announcement, in which finance minister John Healey will seek to strike a balance between the wishes of bond investors and government promises to ease the cost of living for households.
Sterling was at 83.67 pence per euro, a fraction firmer on the day, and closing in on last week's 83.63, which was its strongest on the common currency since May 2025. The pound has been rallying on the euro as traders expect a largely undramatic budget on Wednesday, while political ructions in France have jolted French government bonds dramatically and weighed on the shared currency. Oil futures fell on Tuesday as attention turned to Middle East peace talks, though prices remain near multi-month highs as the Houthi-Saudi Arabia conflict rages and the potential for fresh US-Israeli attacks hangs over the market. Brent crude futures were down $1.00, or 0.86%, at $114.81 a barrel by 1311 GMT. US West Texas Intermediate crude was down 78 cents, or 0.77%, at $100.98. Swiss bank UBS said it expects Brent prices to stay elevated near $110 a barrel through to the end of the year, citing volatile Middle East supply and geopolitical uncertainty. It was previously forecasting $100 a barrel at the end of this year. Brent prices surged to more than $117 a barrel last week for their highest since April, buoyed by a wave of Iranian attacks on tankers around the Strait of Hormuz. Brent touched $117 on Monday as well. Gold prices rose more than 1% on Tuesday as lower oil prices lent support, with market participants awaiting the Federal Reserve's policy meeting for signals on the ?future path of US interest rates. Spot gold gained 1.1% to $4,060.56 per ounce by 12:07 p.m. ET (1707 GMT) after hitting as low as $3,987.14 earlier in the session. US gold futures for December delivery climbed 0.9% to $4,074.40 per ounce. Oil futures fell more than 1% on Tuesday as attention turned to Middle East peace talks, though prices remain near multi-month highs as the Houthi-Saudi conflict rages and the potential for fresh US-Israeli attacks hangs over the market. Analysts cut their 2026 gold price forecast for a second straight quarter because of high Treasury yields, a strong US dollar and expectations that rates will stay high for longer, but still expect a recovery in 2027, The survey of 30 analysts and traders conducted over the past three weeks returned a median gold forecast of $4,495 per troy ounce for 2026. Among other metals, spot silver rose 0.9% to $54.40 per ?ounce after hitting its lowest in almost a year, platinum edged up 0.4% to $1,533.30 per ounce after falling to its lowest since late November 2025 and palladium dropped 1.8% to $1,031.01 after slipping to its lowest since June 2025 earlier in the session. Analysts expect silver to average $66.75 per ounce in 2027, down from this year's forecast of $70.30, but up from the current price of $53.
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