Dollar closed at 63.4850 against its opening of 63.4900. Dollar depreciation to one-week low during afternoon trades capped on Reserve Bank of India's intervention in the foreign exchange market to curb further volatility in the spot amid oil importers demand. Indian shares open higher tracking firm trading in Asian shares on optimism over quarterly earnings amid robust growth in manufacturing sector after India's industrial output hit a 25-month high in November. US markets remain closed today on account of Martin Luther King's birthday. The greenback faltered against its major peers after European Central Bank, Bank of Japan announced tightening of the monetary stimulus to start this month, despite upbeat inflation and retail sales figures from US. US consumer prices saw their biggest jump in 11 months in December, boosting expectations that inflation will keep the Federal Reserve on the path of raising interest rates.
The Consumer Price Index (CPI) rose 0.3% last month from November, compared to expectations of a 0.2% increase by analysts. US retail sales increased at a slower pace in December rose 0.4% last month from 0.8% in November.
Sensex is trading more than 180 points, or 0.5 percent, higher at 34,776 points, with 24 components in green.
INTERNATIONAL
Asian shares hit historic highs after Wall Street extended its record-breaking run, while the U.S. dollar retreat continued as investors priced in the risk of tighter policies elsewhere in the developed world.
Bank of Japan Governor Haruhiko Kuroda reiterated the central bank’s resolve to maintain quantitative easing, but his positive comments on inflation and the economy sent the yen to a four-month high versus the dollar.
Oil prices held just below December 2014 highs on Monday, supported by ongoing output cuts led by OPEC and Russia despite a rise in U.S. and Canadian drilling activity that points to higher future output in North America.
Gold prices gained in Asia with a holiday ahead in the US keeping trade light and the market awaiting more signals on inflation this year as debate grows over the extent of potential price gains globally.