USDINR start on Tuesday with 6 pips gain @ 71.22/23 verses Monday finished trade at 71.28/29. On early trade Rupee under pressure on Dollar advance as safe haven as well as Global growth worries. For short term Rupee may get some relief on dollar is also facing indirect pressure from slackening momentum in the global economy which has forced the US Federal Reserve to take a cautious approach on any further interest rate increases. Speculation is rife the Fed might soon pause its tightening cycle.
INTRADAY RANGE - 70.85 ( 71.03 - 71.46) 71.58
The rupee Monday weakened by 11 pips to close at 71.28 against the US dollar amid rise in demand for the greenback from exporters and unabated foreign fund outflows. Forex traders said foreign fund outflows and a stronger dollar impacted the trading pattern for the local unit. Indian rupee extended last week's losses after Reserve Bank of India Governor Shaktikanta Das flagged concerns about sticky core inflation. Higher oil prices and worries about a wider fiscal deficit also weighed on sentiment.
The dollar hovered near 2-week highs against its peers on Tuesday as a slowdown in China's economy to 28-year lows revived investor concerns over global growth and supported safe-haven currencies. Overnight, the International Monetary Fund (IMF) cut its 2019 and 2020 global growth forecasts, citing a bigger-than-expected slowdown in China and the Euro-zone, and said failure to resolve trade tensions could further destabilize a slowing global economy.
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