The Rupee closed slightly stronger on Tuesday, supported by likely portfolio inflows and broad-based weakness in the U.S. dollar, although demand for dollars from local corporates kept a lid on the rise. Dollar sales from foreign banks, likely on behalf of custodial clients, helped the rupee advance, alongside a broader inclination to sell the dollar-rupee at the daily reference rate. The rupee had declined to its record low of nearly 92 per dollar before the U.S. trade deal was announced. Since then, a pick up in foreign portfolio inflows has provided support, even as analysts remain sceptical over the sustenance of such flows. Foreign investors have net purchased Indian equities worth $1.3 billion so far this month, after three consecutive months of outflows. Other Asian currencies were mostly stronger on Tuesday, while the dollar index extended its previous session's slide and was last at 98.8, down 0.1%. Focus will now be on U.S. employment and consumer prices reports scheduled for later this week after being pushed back slightly due to a recent three-day government shutdown. Sterling dropped against the dollar and the euro on Tuesday as a broad selloff of the U.S. currency faded, while concerns about British politics and the path of Bank of England monetary policy continued to weigh. Two-year UK government bond yields were roughly unchanged after falling by almost 11 basis points since Thursday, when the Bank of England kept interest rates on hold, but only after an unexpectedly narrow 5-4 vote. Against the dollar, sterling fell 0.2% at $1.3669 . The greenback was little changed against European currencies before key U.S. economic data due on Wednesday. China's yuan surged to its strongest in nearly three years against the dollar, underpinned by heavy corporate demand for the local currency ahead of China's biggest festival. But the move was also spurred by reports on Monday that Chinese regulators have advised financial institutions to trim holdings of U.S. Treasuries because of concerns over concentration risk and market volatility. Oil prices were little changed on Tuesday as the market waited for direction from news on Iran and Russia and data on the U.S. economy and U.S. oil inventories. Brent futures rose 27 cents, or 0.4%, to $69.31 a barrel at 9:58 a.m. EST (1458 GMT), while U.S. West Texas Intermediate (WTI) crude rose 12 cents, or 0.2%, to $64.48.......
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