US Jobs Data
Dollar closed at 64.0600 against its opening at 64.1600. Dollar ended little changed as the impact of dollar selling by exporters got offset by likely overseas funds outflow from local stocks and strong dollar. Indian shares open lower, after falling most in 14 months in the last trading session, tracking weak Asia markets, following the losses in the US stocks over the weekend and concerns about resurgent inflation.Tracking Asian markets, FII outflows from local stocks are seen, as well US jobs data supported the dollar index. Dollar index, which weighs greenback against a basket of six major currencies traded at 89.12 Monday compared to 88.82. The greenback gained grounds against its major peers as stronger than expected US jobs data convinced investors that the Federal Reserve will likely raise interest rates at its March meeting. The US Bureau of Labor Statistics showed that US economy added 200,000 jobs in January, beating market expectation of 180,000 jobs. While wages surged 2.9%. This increased investors' hope of Federal Reserve raising interest rates sooner.
Asian stocks plunged tracking sell-off in US stocks on worries interest rates in the world's largest economy may rise sharply after upbeat labour market data.
BSE Sensex closed lower by 309.59 points at 34,757.16, while the Nifty 50 fell 68.05 points to close at 10,692.55.
INTERNATIONAL
Asian shares fell the most in over a year as fears of resurgent inflation battered bonds, toppled Wall Street from record highs and sparked speculation that central banks globally might be forced to tighten policy more aggressively.
China's services sector got off to a flying start in 2018, expanding at its fastest pace in almost six years as new orders surged and companies rushed to hire more staff, a private survey showed on Monday.
Oil prices extended declines from the end of last week amid a wider market sell off and a stronger dollar, with Brent crude falling to its lowest in nearly a month.
Gold prices eased in Asia despite a stronger reading on the consumer-demand side in China as sentiment on the dollar is weighed with a steeper yield curve.