CURRENCY OVERVIEW

The Indian rupee swung between modest gains and losses before closing marginally higher on Tuesday, pushed around by volatility in oil prices, while likely central bank intervention supported the unit and ‌swap operations drained excess cash. The rupee rose 0.2% to end at 95.59 per dollar, helped by a 1.5% decline in Brent oil prices to $98.8 per barrel. Traders pointed to media reports stating that Iran had offered to reopen the Straight of Hormuz, a key energy artery, if the US eases military pressure ?and lifts its blockade. Oil prices were higher earlier in the session, weighing on the rupee even as dollar sales by state-run banks helped limit the currency's fall. The two-way moves in the currency prompted traders to keep positions small with tight stop-losses, a senior treasury official at a bank said. The dollar was slightly higher on Tuesday, but off a two-month high hit earlier in the day as investors weighed another decline in oil prices against the possibility of more rate hikes ‌from the Federal Reserve. The dollar index , which measures the greenback against a basket of currencies, rose 0.06% to 100.48, with the euro down 0.08% at $1.1453. The dollar index had risen as much as 0.25% on the day to 100.66, its highest since July 30, while also falling as much as 0.11%. The British pound traded flat just off a two-month low against the dollar on Tuesday, as traders weighed a report that said Iran had offered to reopen the ‌Strait of Hormuz within seven days. The disruption of the crucial shipping route has strained global oil supplies and posed a serious challenge for nations such as the UK, which rely on imports. A sustained resumption of oil flows through the channel could ease pressure on the ?Bank of England to hike rates, which in turn may limit gains in sterling. Sterling was largely unchanged at $1.3366, clawing back after dropping to $1.3327 earlier in the session. Against the euro, it was down 0.06% at 85.76 pence . Gold prices edged lower on ‌Tuesday as markets factored in more restrictive monetary policy from the US Federal Reserve this year, while traders also kept close tabs on the Middle East conflict. Spot gold was down 0.3% at $4,332.34 per ounce by 9:25 a.m. ET (1325 GMT). US gold futures fell 0.3% to $4,370.40. Traders see a 90% chance of a rate hike in December, compared to 80% last week, according to the CME FedWatch Tool. Spot silver fell 0.4% to $65.76, platinum climbed 1.4% to $1,822.58, and palladium added 0.9% to $1,312.16.