Dollar closed at 63.9300 against its opening at 63.9000. Dollar ended flat on selling by foreign banks likely for exporters amid IPO-related inflows and overseas fund buying into local stocks.The rupee outlook seems quiet strong with IPOs such as ICICI Lombard and Matrimony.com lined up this week, however the fall will be capped by likely intervention by the RBI."Foreign banks selling amid IPO related inflows are weakening the spot pair'. Asian currencies as the greenback rebounded on waning force of Hurricane Irma as it slowed down to a category two strength hurricane amid absence of deterioration in tensions in the Korean peninsula. Also, Asian currencies traded lower against the dollar. Dollar strength is modestly back with the passing of the Hurricane IRMA with initial estimates of lesser damage than anticipated. Asian equity markets are rallying with no new developments from the Korean Peninsula. The greenback rebounded from its 32-month lows on waning strength of Hurricane Irma as it slowed down to a category two strength hurricane and easing tensions in the Korean peninsula.
Asian stocks rose on waning worries over Irma's force as it slowed down to a category 2 hurricane while the United Nations prepared to vote on tougher North Korean sanctions.Global Risk appetite also returned to the markets as on receding chances of Federal Reserve interest rate increases this year after the US was struck by the first back-to-back major storms since 1964.
BSE Sensex closes higher by 195 points to 31,882, while the Nifty 50 rises 71 points to close at 10,006.
INTERNATIONAL
Gold prices fell in Asia with risk assets taking a breather as Hurricane Irma is downgraded in intensity and an possible ICBM test by North Korea at the weekend failed to materialize.
Oil prices edged up after the Saudi oil minister discussed possibly extending a pact to cut global oil supplies beyond March 2018 with his Venezuelan and Kazakh counterparts.
Greece will exit successfully its bailout program in 2018 helped by strong growth, Prime Minister Alexis Tsipras said on Saturday, vowing to support workers, young Greeks and small businesses as the economy recovers.
Japan’s core machinery orders rose in July at the fastest pace since January 2016, rebounding from a third straight month of falls and an encouraging sign of the increased capital investment needed for sustained economic recovery.
China’s producer price inflation accelerated more than expected to a four-month high in August, fueled by strong gains in raw materials prices and pointing to strong, sustained growth for both factory profits and the economy.