USD/INR closed at Rs 69.2550/$1 Tuesday against its opening of Rs 69.14/$1. USD/INR ends up Tuesday on buying by nationalised banks likely on behalf of oil importers, while the central bank was also expected to have came in to check volatility. PSU banks were buying mostly for oil importers. Also, the presence of RBI is suspected, capping further appreciation in the rupee to check volatility in the market.
The greenback continued weakening against its major counterparts tracking a slide in US Treasury yields on increased bets for a near-term rate cut by the Federal Reserve.Brent continued trading around $61/bbl and prospects of a Fed rate cut soon is weighing on dollar.The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 97.13 late Tuesday compared to 97.64 at close of Indian market on Monday.
The US Treasury yield fell to its lowest level since September 2017 overnight, after St Louis Federal Reserve President James Bullard said a rate cut "may be warranted soon" given the rising risk to economic growth posed by global trade tensions as well as weak US inflation. Brent futures for August delivery traded 0.44% down at $61.01 a barrel on Tuesday morning.
Crude oil prices plunged as global economic slowdown affect crude oil demand, triggering calls in producer club OPEC for supply cuts to be extended.
Sensex drops 184 points on profit taking ahead of market holiday; Nifty below 12,050.