Dollar closed at 65.4200 against opening at 65.3700. Dollar pared gains during afternoon trades on selling by nationalised banks likely on behalf of Reserve Bank of India in order to curb volatility in the foreign exchange market. Oil prices are steady on ongoing tensions in the Middle East and after a rising rig count in the United States suggested producers there are preparing to increase output. Saudi Arabia has called for an urgent Arab League minsterial meeting to discuss Iran's role in the region. The meeting is expected to be held in Cairo, which comes on the back of simmering tensions. Also, a powerful 7.3 magnitude earthquake in the Iraqi city of Halabja, close to the Iraq-Iran border, killed scores of people in Iran. Local stocks opened flat tracking Asian shares on worries about the future of promised corporate tax amid optimism after GST Council trimmed the list of items included in the top most slab.
On the domestic front the Goods and Services Tax (GST) Council on Friday decided to slash rates on more than 175 items, reducing taxes on these from the existing 28% in one of the biggest tax reductions since the new system kicked-in from July 1. On the global front Asian shares traded mixed to lower Monday after US stocks ended lower Friday. US Senate Republicans unveiled a new tax plan that differed from the House of Representatives' version.
Sensex provisionally ends 289.55 points lower at 33,033.56 points with 25 components in red.
INTERNATIONAL
Asian shares stepped back in cautious early trade as investors look to see whether U.S. Republicans can hammer a tax reform deal quickly, while the British pound fell on growing doubts over Prime Minister Theresa May's leadership.
prices were mixed in Asia with WTI getting a boost on a pipeline disruption int he Middle East and concerns that oil facilities suffered damage from a deadly earthquake tat struck areas of Iran and Iraq earlier on Monday.
Gold gained in Asia on Monday as Philadelphia Federal Reserve Bank President Patrick Harker on Monday said the U.S. central bank did not have to remove a lot of monetary policy accommodation before it returned to a neutral stance.
U.S. President Donald Trump raised North Korea’s missile tests during talks on Monday with the prime ministers of Japan and Australia, and said “a lot” of progress had been made in negotiations on trade.
U.K. Labour Party accused Prime Minister Theresa May of lacking the support within her Conservative Party to deliver the Brexit transition period she’s proposed, and urged her to work instead with the opposition to pave the way for one.