USD/INR Closed at 70.93 against its Opening at 70.49. USD/INR ends near 1 month high on oil bids on Monday as easing crude oil prices offset a strong greenback and likely overseas fund outflows from local stocks.Foreign banks were seen buying in spot along with FII outflows.
Oil slipped to around $60 a barrel on Monday after data showed weakening imports and exports in China, the world’s second-largest oil consumer, raising the prospect of a slowdown in fuel demand.Brent crude oil futures for March delivery traded 1.07% down at $59.83 a barrel on Monday.
The greenback surged against major peers, euro and pound, on short-covering by traders after dismal US inflation data.The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 95.61 during late Asian trades Monday compared to 95.33 at previous close.
On Friday, US data showed that US consumer prices in December fell for the first time in nine months in December.The Labour Department said its consumer price index dipped 0.1% last month, which is the first drop and weakest reading since March.Poor inflation data hardened expectations that the Federal Reserve may be hesitant to increase borrowing cost in this year.
Investors await the release of India's December inflation data due later today. india's Consumer Price Index-based inflation may have slipped to 17-month low of 2.25% in December compared with 2.33% seen in November.
Sensex provisionally ends 141 points lower with 23 components in the red.