The Rupee closed weaker on Wednesday and will remain under pressure due to worries over a likely default by Chinese property developer Evergrande and as investors across the world await the outcome of the US Federal Reserve's two-day policy meeting later today. The International Monetary Fund on Tuesday said it is closely following developments surrounding Evergrande, but believes that Beijing has the tools to prevent the situation from turning into a systemic crisis. As a result, the Chinese yuan fell against the dollar, weighing on other Asian assets including the Indian Rupee. Gold futures settled higher for a second straight session on Tuesday due to weakness in the US dollar, while investors awaited the outcome of the Fed meet that could provide cues on the timeline of tapering.......
The US dollar index was lower against a basket of major currencies in early Asian trade today. On Monday, the greenback, seen as a safe-haven, remained firm as concerns over Chinese property developer Evergrande's solvency spooked equity markets and investors braced for the outcome of the Fed's policy meet. Evergrande Group is said to have some $300 bln in debt that some fear could have far-reaching implications for global financial markets. The company is due to pay $83.5 mln in interest on its March 2022 bond on Thursday and has another $47.5-mln payment due on Sep 29 for March 2024 notes.......