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The Rupee closed slight stronger on Tuesday, helped along by a broadly weaker dollar and the boost from a landmark trade agreement between India and the European Union, which is expected to cut tariffs on nearly all Indian exports. India and the EU have finalised a long-pending landmark trade deal, both sides said on Tuesday. Over a period of seven years, the European bloc will cut tariffs on 99.5% goods traded, with the pact will also reducing or eliminating levies on a slew of EU goods coming to India, including machinery, electrical equipment and chemicals. The agreement comes on the heels of India finalising trade pacts with Britain, New Zealand and Oman, even as the South Asian nation continues to grapple with steep levies on exports to the U.S. On the day, broad-based dollar-selling interest helped lift the rupee. Despite the day's rise, persistent foreign selling of local stocks - to the tune of more than $3.5 billion this month so far - remains a sore spot for the currency. Foreign investors net pulled out a record nearly $19 billion from stocks last year. Absent a turnaround in flows, traders and analysts reckon that the rupee's fortunes are unlikely to reverse and that a gradual depreciation is likely to persist. In the near-term, the rupee is likely to hover in the 91.20-92.10 range with India's federal budget announcement on February 1 the next major cue in focus, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities. The U.S. dollar fell for a fourth straight ?day on Tuesday, slipping to a four-month low, as traders kept watch for possible coordinated currency intervention by U.S. and Japanese ?authorities and a Federal Reserve interest rate decision. The dollar has been under intense pressure this month from factors including U.S. President Donald Trump's policymaking and concerns about Federal Reserve independence. Trump has also in recent days said he would impose a 100% tariff on Canada if it follows through on a trade deal with China. Against a basket of currencies, the dollar fell 0.48% to 96.64, hovering near September's 3-1/2-year low, and ?down from an earlier high of 97.287, in volatile trading. Investors will watch the Fed's two-day meeting this week for clues to the path of monetary policy. Much of the foreign exchange market's focus has also been on the yen, which has ?rallied by as much as 3% ?over the last two sessions on ?talk of the U.S. and Japan conducting rate checks - often seen as a precursor to official intervention. That has helped the yen slip below 153 to the dollar. It was last trading at 152.96. The euro ?was last 0.7% higher at $1.19635, trading around levels last seen in June 2021. Similarly, sterling added 0.8% to $1.3786, its strongest since October 2021. The Australian dollar rallied 0.8% to $0.69705, its highest since February 2023. Oil prices rose by more than $1 a barrel on Tuesday as producers reeled from a winter ?storm that hobbled crude production and drove U.S. Gulf Coast crude exports to zero over the weekend. Brent crude futures were up $1.29 or 1.97%, at $66.88 a barrel by 11:31 a.m. EDT (1631 GMT). U.S. West Texas Intermediate crude was up $1.29 or 2.13%, at $61.92 a barrel.......
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GlobalFX

The US dollar weakened sharply against other major currencies after data showed that the US economy suffered a record contraction in Apr-Jun, while jobless claims rose in the week ended Saturday also rose.The US unit also extended its decline globally on Thursday after Trump raised the possibility of delaying presidential election in the US, scheduled for November.European Stocks ended lower on Thursday due to mounting concern over sluggish economic recovery and a possible second wave of the COVID-19 pandemic.Germany reported its worst decline in GDP since 1970, with the Eurozone’s largest economy shrinking 10.1% quarter-on-quarter in Apr-Jun.Corporate earnings were high on investors' agenda on Thursday.In the US, Most share indices ended lower on Wednesday following bleak economic data.Lack of progress in talks between Congressional Democrats, Republicans and the White House on a new coronavirus aid package also weighed on sentiment.Gold futures settled lower on Thursday after nine consecutive days of gains, with the bullion retreating from a record rally as traders booked some profit.......
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