Dollar/rupee closed at Rs 69.70/$1 Tuesday compared to its opening of Rs 69.83/$1. Dollar/rupee ends down on Tuesday on oil-related dollar buying by nationalised banks and likely intervention by the Reserve Bank of India to check further appreciation in spot rupee.
Oil prices are fluctuating and oil importers will start buying at every dip. So we can expect some buying around Rs 69.70-69.75/$1. Also, RBI will intervene and has been intervening recently to check further rise in rupee in order to maintain export competency. further fall till Rs 69.70/$1 may be expected weighed by FPI inflows into local government bond and tracking a retreating greenback ahead of the Federal Open market Committee two-day policy meet.
The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 97.66 late Tuesday compared to 97.52 at close of Indian market on Monday.he greenback traded lower against its major counterparts as the Federal Reserve starts its two-day monetary policy meet later today. The Fed is expected to leave borrowing costs unchanged this time but possibly lay the groundwork for a rate cut later this year.
Brent futures for August delivery traded 0.03% down at $60.92 a barrel on Tuesday.Crude prices retreated from the previous session as global growth concerns overshadowed supply-related tensions from Middle East. Oil prices are holding near $60/bbl after retreating more than 1% Monday as weak Chinese economic data fanned fears of lower worldwide demand for the commodity.
China's industrial output growth unexpectedly slowed to a more than 17-year low, data from the National Bureau of Statistics showed.
Sensex provisionally ends 100 points higher with 19 components in the green.