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Spot gold pared most of its earlier losses on the day, and was little changed at $1,922.27 per ounce by 9:35 a.m. ET (1435 GMT). Bullion has gained 5.3% in January.
A note from one of the group’s key units, Adani Ports & Special Economic Zone Ltd., rose 3.4 cents on the dollar to 68.8 cents as of 9:47 a.m. in Hong Kong. That pares its drop since US-based short seller Hindenburg Research last week alleged “accounting fraud” at Adani group to about 10 cents.
However, heavy selling pressure in the domestic equity markets and unabated foreign fund outflows restricted the gains in the local currency, forex traders said. At the interbank foreign exchange market, the rupee opened stronger at 81.51 to a dollar.
Gross domestic product increased at a 2.9% annualised rate last quarter, the Commerce Department said in its advance fourth-quarter GDP growth estimate. The economy grew at a 3.2% pace in the third quarter. Economists polled by Reuters had forecast GDP rising at a 2.6% rate.
Liquidity was thin during Asian trading hours as markets in China, Hong Kong, Singapore, Malaysia, South Korea and Taiwan were closed for the Lunar New Year holiday.
The rupee depreciated around 10 percent against the US dollar in 2022
At the interbank foreign exchange market, the rupee opened at 81.45 against the greenback, and finally settled at 81.37, down 7 paise over its previous close. During the session, the rupee also touched an intraday high of 81.27 against the American currency.
At the interbank foreign exchange market, the local unit opened weak at 81.80, but pared the losses and settled for the day at 81.25 (provisional), registering a rise of 44 paise over its previous close.
The 10-year yield on Japanese government bond breached the BOJ’s ceiling for three straight sessions to Tuesday, leading to a wave of emergency bond buying by the government.
Forex traders said risk aversion in international markets and sustained foreign fund outflows weighed on investor sentiments.
Brent crude futures rose by $1.01, or 1.2%, to $85.04 a barrel by 11:16 a.m. EST (1616 GMT). West Texas Intermediate (WTI) crude futures gained by $1.18, or 1.5%, to $79.57 a barrel.
Forex traders said positive macroeconomic data and broad weakness in the American currency supported the rupee and contained the depreciation bias.
The data showed that prices unexpectedly fell for the first time in more than 2-1/2 years in December.
Rising prices have papered over a lot of problems with the single currency, but disinflation could bring them back
The Japanese yen rose as much as 0.8% to a session high of 131.36 per dollar in Asian trade, following a Yomiuri report that the BOJ will review the side effects of its monetary easing at next week's policy meeting and may take additional steps to correct distortions in the yield curve. The yen last bought 131.70 per dollar.
At the interbank foreign exchange market, the local unit opened at 81.73 and touched an intra-day high of 81.52 and a low of 81.82 against the greenback.
Mumbai, Jan 10 The rupee gained 57 paise to close at 81.78 (provisional) against the US dollar on Tuesday, the biggest single-day gain since November.Fo..
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At the interbank foreign exchange market, the local unit opened at 82.41 and touched an intra-day high of 82.25 and a low of 82.44 against the greenback.
China's offshore yuan neared its highest in five months against the U.S. dollar, while the Australian and New Zealand dollars - generally regarded as more liquid proxies for the Chinese currency - rallied sharply.
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The rupee last traded at 82.5550 to the dollar, up from 82.8025 in the previous session.
Traders will scour Wednesday's meeting minutes for indications that Fed officials are concerned about persistent inflation even as the bank slows the pace of its rate increases.
The dollar headed for its largest one-day rise in over three months on Tuesday, while U.S. stocks bucked a global equities rally in a macro-packed week