Dollar closed at 64.1350 against its opening at 64.0700. Dollar ends up due to The Reserve Bank of India intervened in the foreign exchange market by buying dollar during early noon trade Monday to stem the fall of the currency pair, "Union Bank of India, Bank of India and Bank of Baroda were bidding on behalf of the RBI," Dollar open little changed as investors await the release of US FOMC meet outcome by Sep 20. There are no fresh triggers. Investors are awaiting FOMC meet outcome this week to give direction to the market. U.S. Federal Reserve is likely to wrestle with its bloated balance sheet as part of a long reversal of super-cheap money worldwide. There was relief the weekend passed with no new provocation by North Korea, though Pyongyang’s nuclear ambitions will be centre stage when U.S. President Donald Trump addresses world leaders at the United Nations on Tuesday.Some details of Trump’s tax plans may also emerge this week, while elections in Germany and New Zealand will add extra political uncertainty to the mix.
On the US economic front, US retail sales unexpectedly fell in August as Hurricane Harvey likely depressed motor vehicle purchases, suggesting a moderation in consumer spending in the third quarter. US retail sales dropped 0.2% in August. Data for July was revised to show sales increasing 0.3% instead of the previously reported 0.6% jump.
BSE Sensex closes higher by 151 points to 32,424, while the Nifty 50 gained 68 points to close at 10,153..
INTERNATIONAL
Asian shares hit decade highs and the dollar held firm early in a week in which the U.S. Federal Reserve is likely to wrestle with its bloated balance sheet as part of a long reversal of super-cheap money worldwide.
European Central Bank will announce in October a six-month extension to its asset purchase programme but will cut how much it buys each month to 40 billion euros from January, a Reuters poll of economists found.
Foreign minister Boris Johnson was accused by a government statisticians of misusing state data after he repeated a pro-Leave campaign mantra that Britain would have an extra 350 million pounds a week after Brexit.
China will strengthen its supervision of overseas investment risks and capital flows from insurance funds, the insurance regulator said on Monday, adding that it will urge companies to improve their risk monitoring systems.
Gold prices fell in Asia as investors moved away from risk trades on North Korea tensions, but staged gains as housing data from China showed countinued gains for prices albeit at a slower pace that the previous month.
Oil markets were firm and remained near multi-month highs reached late last week as the number of U.S. rigs drilling for new production fell and refineries continued to start up after getting knocked out by Hurricane Harvey.