Dollar closed at 64.0325 against its opening at 63.6000. India’s December trade deficit widened to its highest in more than three years as higher import bills for gold and crude oil weighed on rising exports. The trade deficit has widened by about $36.4 billion in the first three quarters of the current financial year to $114.86 billion. That could put pressure on the current account deficit of Asia’s third largest economy.
US Financial markets were shut marking the birthday of Martin Luther King Jr. It is observed on the third Monday of January each year, which is around King's birthday, January 15.
Indian stocks open flat as widening trade deficit and crude oil prices spell negative for the economy, while optimism over quarterly earnings, higher Asian shares seen providing cushion against sharp sell-off.
India's December trade deficit widened to its highest in more than three years as higher import bills for gold and crude oil weighed on rising exports, government data showed on Monday.
Sensex provisionally ends 46.83 points, or 0.13 percent, lower at 34,796.68 points, with 18 components in red.
INTERNATIONAL
Asian shares slumped on Tuesday, as miners were pressured by weaker Chinese iron ore prices, while the euro stood near a 3-year peak on rising expectations that the European Central Bank could pare its monetary stimulus.
Gold prices rose in Asia on Tuesday as the market shrugged off signs of tighter monetary policies ahead for the Bank of Japan and European Central Bank and took advantage of a weaker dollar trend to buy the greenback-denominated commodity.
Brent crude prices consolidated recent gains at around $70 a barrel on Tuesday, a level not seen since 2014’s dramatic oil market slump.
India and Israel will begin work on a free trade pact that Israel has been pushing for, as Benjamin Netanyahu began a first visit by an Israeli prime minister in 15 years.India and Israel have built close ties over the years, largely centered on arms purchases, away from the public eye. But under Indian Prime Minister Narendra Modi, whose nationalist party has long admired Israel for its tough approach to terrorism, ties have flowered across the economy.