Global currency market sentiment is likely to be driven by the US deficit and debt ceiling negotiations, with markets likely to turn more risk averse closer to October 17, the date by which the US Congress must approve raising the country's borrowing limit.
The improvement in the current account deficit is expected to provide a major reprieve to the government and the Reserve Bank of India which have been battling to prop up the rupee.
In line with rally in stocks, the Indian rupee on Monday appreciated for the second straight session and closed with a eight paise gain at a one-week high of 61.36 against the Greenback.
If you plan to send your child to the US five years from now and expect the rupee to depreciate five per cent every year, adding US funds to your portfolio might be a good idea, says Ashley Coutinho.
The dollar gained against other currencies overseas.
French stocks, particularly those exposed to the country's large tourism sector, are likely to suffer the biggest falls
Surging value of dollar may be posing the biggest threat to US corporate earnings.
The central bank will auction Rs 220,00 crore (Rs 220 billion) of government cash management bills every Monday, it said in a statement, without specifying for how many weeks the sales would last.
The falls meant that both crude futures were at their lowest levels since mid-April
The rupee recovered by 11 paise to trade at 60.84 against the US dollar in early trade today on selling of the American currency by banks and exporters.
The rupee had last ended at 67.22 per dollar on March 16, 2016.
Investors brace up ahead of the key macrodata- IIP and CPI numbers due to be unveiled tomorrow.
Indian rupee appreciated by 35 paise to end at two-week high of 63.03 against the greenback.
The rupee weakened by 27 paise to trade at six-week low of 60.45 against the US dollar in early trade today at the Interbank Foreign Exchange market on high demand for the American currency from importers.
Chinese shares opened lower, with the Shanghai Composite Index down 1.8% and the CSI300 index down 2.2%.
Reacting to market specific developments, the domestic unit touched a low of 66.74 in intra-day trade before concluding at 66.65.
Sensex gains 2.4%, Nifty crosses 7,000; investors feel exit polls have vindicated their stand
Tracking a recovery in local shares, the Indian rupee on Friday snapped a two-day declining trend and bounced back by 39 paise to end at 61.44 against the Greenback on fresh dollar selling by exporters and some banks.
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Sentiments turned buoyant after RBI on Monday cut the marginal standing facility rate, at which it lends emergency funds to banks, by 0.5 per cent to 9 per cent with an aim to improve liquidity and boost economic activities.
RBI would get the comfort of meeting its 8 per cent January Consumer Price Index-based inflation target, BofA-ML said, adding that 'we expect the RBI to cut 75 bp in 2015 from February with inflation on course to 6 per cent in January 2016'.
RBI governor Raghuram Rajan, on Monday, said the current level of the rupee is "pretty reasonable" and any attempt to devalue it may lead to a surge in inflationary pressures and "offset any benefits"
The huge pressure on the currency market largely went unnoticed because of the demonetisation exercise.
The combined 10 Asian currencies have appreciated by 6.6%.
The dollar gained strength with the emergence of the US as the only developed economy showing signs of recovery.
Possible slowdown of FII money into debt and equity markets could add pressure on currency.
The rupee dropped on renewed demand for the American currency.
The rupee had dipped by a massive 67 paise to an all-time closing low of 61.10 against the dollar on Friday.
Exchange-traded currency futures volume down 80% since Jun
Month end dollar demand from oil importers has forced rupee to trade weak.
The rupee closed at Rs 66.21 in its last trading session.
RBI is unlikely to stem the slide against the dollar as the greenback is rising rapidly against all currencies in the world.
Asian shares ended higher after a string of positive US economic data.
Asian stocks sagged on Monday, with risk sentiment dampened as Shanghai shares wobbled after the Chinese markets resumed trading following a four-day long weekend.
The breadth was neutral with 1,329 advances and 1,320 declines.
The silver lining is that a pick-up in the US economy could help emerging market exports.
The rupee is likely to strengthen to 60-61 level by this fiscal-end on expectations of improvement in current account deficit (CAD) and higher inflows from overseas investors.
Rupee is seen to remain in the range of 67.50-68.80 in the short-term
Decline in the rupee coupled with a slide in the crude oil prices have dented the sentiments.
The 30-share Sensex ended down 604 points at 28,845 and the 50-share Nifty ended down 181 points at 8,757. The Bank Nifty ended down 602 points at 19,146.
Sun Pharma was the top gainer after SPARC received Sebi nod to raise up to Rs.250 crore through a rights issue
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