USD/INR closed at 71.2750 against its last opening at 71.36. USD/INR traded on Monday on overseas fund inflows into local stocks, ends up on oil bid.
On Monday, according to National Bureau of Statistics official data, Chinese economy grew at 6.4% in the fourth quarter of 2018, lowest since the global financial crisis in 2008, while it grew at 6.6% in 2018.
However, Japanese yen plunged against US dollar as globally risk-sentiments improved following signs of easing Sino-US trade war.
Reports showed Chinese officials offered to increase imports of goods and services from the US by more than $1 trillion over a period of six years, potentially eliminating its trade deficit with US by 2024. On Wednesday, the Chinese government said the top trade envoys from both countries will meet at the end of January. The US trade deficit with China grew to a record $323.3 billion in 2018.
Oil prices fell on Monday, in line with weaker stock markets after evidence that economic growth in China, the world’s second largest crude consumer, eased in 2018.Brent crude oil futures LCOc1 were last down 35 cents on the day at $62.35 a barrel, while U.S. crude futures CLc1 were down 23 cents at $53.57 a barrel.
The greenback trading higher against major peers tracking up-tick in US treasury yields and better than expected US economic data.
The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 96.35 during late Asian trades Monday compared to 96.01 at previous close. On the US economic front, the Federal Reserve showed industrial production increased by slightly more than expected in December.
The Fed said industrial production increased by 0.3% in December after climbing by a downwardly revised 0.4% in November. Economists had expected industrial production to edge up by 0.2% compared to the 0.6% advance originally reported for the previous month.
Britain is now likely leave the European Union without a deal after lawmakers defeated Theresa May’s European Union withdrawal deal, a leading eurosceptic lawmaker in her Conservative Party said on Monday.Jacob Rees-Mogg, chairman of the European Research Group of anti-EU lawmakers in May’s Conservative party, said the next most likely outcome is the government will secure a revised Brexit deal.
Sensex ends 162 points higher with only 9 components in the green.