Dollar closed at 65.4900 against its opening at 65.3100. Dollar extended gains to five-month high of a level last seen on Nov 14, 2017, on buying by Essar Oil to settle dues to Iran for previous oil purchases. Dollar demand by oil importers support the spot, but easing geo-political tension in Middle East may support rupee. The International Energy Agency predicted robust oil demand for the full year but warned about risks from disruptions to global trade, keeping Brent crude oil prices above $70 a barrel. However, US President Donald Trump after launching missiles targeting what the Pentagon said were chemical weapons facilities in Syria on Saturday, in retaliation for a suspected poison gas attack on April 7, said further action in the Middle East is not required.
Meanwhile on the US economic data front, JOLTs job openings decreased to 6.052 mln in February, compared to the revised 6.228 mln reading seen in January. According to the release, the percentage of openings decreased to 3.9% from 4.0%, alongside decreases in the rate of hiring to 3.7% from 3.8%. US Michigan consumer sentiment registered a fall to 97.8 in April from 101.4 previously.
Sensex provisionally ends 126 points higher with 20 components in the green.
INTERNATIONAL
Asian stock indices traded lower tracking declines in Hong Kong and Chinese equities as investors assess air-strikes against Syria over the weekend and focus on the start of earnings season in the U.S. as well as speeches by Federal Reserve officials.
Russian President Vladimir Putin warned that further Western attacks on Syria would bring chaos to world affairs, as Washington prepared to increase pressure on Russia with new economic sanctions.
China’s central government-owned firms accelerated in the first quarter while debt levels fell from the beginning of the year, suggesting Beijing is having some success with revamping its debt-ridden and lumbering state sector.
Oil prices fell as markets opened the week cautiously following western air strikes in Syria over the weekend, and as American drilling for new production continued to rise.
Gold prices rose on safe-haven buying following the U.S.-led missile strikes against Syria at the weekend, but the gains were limited by the likelihood that the operation may be a one-off event.