Dollar closed at 68.1200 against its opening at 68.1200. Dollar fresh 16-month high on increased demand from oil importers for their month-end payments amid strengthening greenback. Also, sentiments dampened after Bharatiya Janata party failed to form government in Karnataka after newly elected BJP's Karnataka Chief Minister resigned after failing to gather confidence vote. Firm dollar and month-end oil importers demand will keep the currency pair firm today. Crude oil prices rose as investors reacted to news that China and the United States have put a looming trade war between the world's two biggest economies "on hold". The US trade war with China is "on hold" after the world's largest economies agreed to drop their tariff threats while they work on a wider trade agreement, said US Treasury Secretary Steven Mnuchin on Sunday. The greenback surged to five-month high tracking the rally in US treasury yields while awaiting the Federal Reserve May monetary policy minutes due this week. Asian shares rose on Monday as US Treasury Secretary Steven Mnuchin announced the US trade war with China "on hold" following an agreement to drop their tariff threats that had roiled global markets this year.
BSE Sensex closed 232.17 points lower at 34,616.13, while the Nifty 50 ended 79.70 points down at 10,516.70.
INTERNATIONAL
Asian equities extended their gains in afternoon trade on Monday, with weekend developments in U.S.-China trade talks in the spot light.
Gold prices fell as U.S. Treasury Secretary Steven Mnuchin said on Sunday that a trade war between China and the U.S. is now on hold.
Cryptocurrency prices gained, with Bitcoin and Litecoin trading about 3% higher. Reports that the fourth largest crypto exchange Bitfinex is giving out its customers’ data to the government received some attention.
Chinese state media praised a significant dialing back of trade tension with the United States, saying China had stood its ground and the two countries had huge potential for win-win business cooperation.
Oil prices rose morning in Asia, boosted by news that China and the U.S. have put a looming trade war “on hold”.