We are expecting USDINR likely to commence Tuesday session between 73.58 - 73.65 levels as greenback traded near 2.5 year lows against major peers on early Asian session as demand for the safest assets flagged amid progress toward agreeing U.S. fiscal stimulus and optimism for a Brexit deal.
India's retail inflation eased in November after holding above 7% for two straight months, but remained beyond the upper bound of the 2-6% target, meaning the central bank is likely to leave policy rates on hold to support the economy, analysts said.
India's wholesale price gauge marginally picked up in November, data released by the Ministry of Commerce and Industry showed on Monday, with prices rising 1.55% from a year earlier.
Leaders of protesting Indian farmers began a one-day hunger strike on Monday against agricultural reforms they say threaten their livelihoods, stepping up pressure on Prime Minister Narendra Modi's government to withdraw the legislation.
INTRADAY RANGE - 73.35 ( 73.52 - 73.73 ) 73.88
GLOBAL OUTLOOKS
The greenback was near its weakest since mid-2018 versus the riskier Aussie and kiwi dollars in early Asian trading with U.S. lawmakers scurrying to ready $1.4 trillion in spending.
European Union Brexit negotiator Michel Barnier said that sealing a trade pact with Britain was still possible, sowing hope that a deal can be reached with just days to avert a turbulent exit for the UK from the trade bloc at the end of the month.
Oil was down morning in Asia, with hopes for improving fuel demand damped as COVID-19 restrictions are tightened even as some countries approve and distribute a COVID-19 vaccine.
Gold fell to a one-week low as investors tracked the deployment of the first Covid-19 vaccines in the U.S. and the continuation of talks on a stimulus bill.
Singapore became on Monday the first Asian country to approve Pfizer-Biotech's coronavirus vaccine and said it expects to start receiving shots by the end of the year.
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