The Rupee closed weak on Tuesday as weak risk appetite amplified lingering pressure from hedging demand and portfolio outflows amid continued uncertainty over a U.S. trade deal. The South Asian unit hit an all-time low for the fourth consecutive session, with traders anticipating that the central bank may step in more aggressively to avoid a speculative build-up against the currency. Foreign investors have net sold over $18 billion of local stocks so far in 2025. The a risk-off mood in global markets also singed Indian stocks on Tuesday, dragging down the benchmark Nifty 50 by 0.6%. Investors are treading lightly ahead of a slate of U.S. data later in the day that will help gauge the U.S. rate trajectory next year. MSCI's gauge of Asian equities outside of Japan fell over 1%, while regional currencies were mixed and the dollar was steady against a basket of major peers. The U.S. dollar fell against major peers on Tuesday after the release of delayed economic data showing stronger-than-expected jobs growth, signalling that the Federal Reserve might be cautious in continuing to cut interest rates in the near term. The employment report was delayed because of the 43-day U.S. federal government shutdown. The greenback eased against its peers following the data. It was last down 0.26% to 0.79435 against the Swiss franc . Fed funds futures are pricing an implied 73.4% probability of a hold in rates at the U.S. central bank's next meeting on January 28, up from nearly 70% a week ago, according to the CME Group's FedWatch tool. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.22% to 98.05. It is on track for the second straight session of losses. The euro was up 0.3% to $1.1788 against the greenback, touching its highest level since September and on track for the fifth consecutive session of gains. The Bank of England, on the other hand, looks set for a knife-edge vote on interest rates this week with Governor Andrew Bailey expected to change his view and tip the balance for a cut. Sterling strengthened 0.39% to $1.3425, hitting its highest level in two months ahead of the BoE's decision on Thursday. A rate hike from the Bank of Japan is largely baked in, although any signal that policymakers could tighten again before spring wage talks would mark a hawkish shift. The dollar dropped 0.38% to 154.615 against the yen ahead of the BoJ's decision on Friday. Sweden's Riksbank and Norway's Norges Bank are expected to leave interest rates unchanged after their policy meetings this week. The Swedish crown strengthened 0.09% versus the dollar to 9.287. Against the Norwegian krone, , the dollar strengthened 0.38% to 10.173. Oil prices fell below $60 a barrel on Tuesday, the lowest since May, as prospects for a Russia-Ukraine peace deal appeared to strengthen, raising expectations sanctions could be eased. Brent crude futures fell $1.03, or around 1.7%, to $59.53 a barrel at 1340 GMT, while U.S. West Texas Intermediate crude was trading at $55.76, down $1.06, or 1.9%.......
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