Dollar is closed at 66.4750 against its opening at 66.2000. Dollar extended gains during afternoon trades on buying by nationalised banks likely for oil importers despite Reserve Bank of India intervention in the futures segment to curb volatility in the forex market. Dollar open higher as demand for the US dollar increased tracking the upward movement of US Treasury yields towards 3% amid likely overseas funds outflow from local stocks. Firm dollar after rising US yields and likely FII outflows from local stocks will support spot pair. The greenback gained grounds against its major peers bolstered by rising US bond yields after Federal Reserve officials signalled further interest rate increases in 2018 based on evidence of steady US growth. Local stocks are likely to open lower tracking Asian shares led by late-week pullback in US equities amid surge in treasury yields. Shares in Asia remained subdued Monday as investors braced for a slew of earnings from the world's largest corporations, while keeping a eye on rising US bond yields and digested declines in technology stocks seen in US.
Sensex ends 37 points higher with 16 components in the green.
INTERNATIONAL
Asian stocks dipped as investors braced for a bevy of earnings from the world's largest corporations, while keeping a wary eye on U.S. bond yields as they approach peaks that have triggered market spasms in the past.
Bank of Japan Governor Haruhiko Kuroda said that the central bank must continue with accommodative monetary easing for some time to meet its 2 percent inflation target.
Oil prices were steady as a rising U.S. rig count pointed to further increases in American output, marking one of the few factors tamping back crude in an otherwise bullish environment.
Cryptocurrencies’ prices gained U.S. Federal Reserve official John Williams criticised Bitcoin, saying it can never be a proper currency. Meanwhile, Iran’s central bank took a stand against cryptocurrencies.
Gold prices were trading lower while the U.S. dollar rose amidst higher 10-year U.S. treasury yields.