Rupee jumps 37 paise to 75.66 against US dollar

The rupee on Tuesday appreciated 37 paise to provisionally close at 75.66 against the US dollar, following a rally in domestic equity market and persistent foreign fund inflows.

Besides, an unstable US dollar against major global currencies also helped the rupee surge, forex dealers said.

At the interbank foreign exchange market, the rupee opened strong at 75.86. During the session the domestic unit swung between a high of 75.65 and a low of 75.89.

It finally settled at 75.66 against the US dollar, registering a rise of 37 paise over its previous close of 76.03.

On the equities front, the 30-share BSE benchmark Sensex was trading 397.86 points higher at 35,309.18 and broader Nifty rose 122.60 points to 10,433.80.

Foreign institutional investors were net buyers in the capital market, as they bought equity shares worth Rs 424.21 crore in the previous trading session on Monday, according to provisional exchange data.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.13 per cent to 96.91.

Brent crude futures, the global oil benchmark, rose 0.67 per cent to USD 43.37 per barrel.

Oil Prices Extend Gains On Demand Recovery Hopes

Oil prices rallied on Tuesday to extend gains from the previous session as positive PMI data from Europe boosted hopes of a bounce in demand.

Benchmark Brent crude climbed 1.1 percent to $43.55 a barrel, after having risen 2.1 percent on Monday. U.S oil futures were up 1.3 percent at $41.25 a barrel, after gaining 1.8 percent the previous day.

As many nations ease lockdown measures, investors turned their attention back to improving demand and easing supply.

New York City, the epicentre of the U.S. outbreak, eased restrictions after 100 days of lockdown despite a number of states continuing to report a rise in new virus cases and hospitalizations.

On the supply side, U.S. and Canadian oil and gas drillers cut the number of the rigs they are operating to a record low.

There is more relief on the data front as a closely-watched measure of economic activity pointed to a continued rebound for the euro zone in June.

The euro area private sector contracted at a slower pace in June as lockdowns to prevent the spread of the coronavirus disease outbreak were further relaxed, flash survey results published by IHS Markit showed.

The flash composite output index advanced more-than-expected to 47.5 from 31.9 in May. The score was forecast to rise to 42.4.

Elsewhere, an initial ‘flash’ reading from IHS Markit showed that the U.K. manufacturing price managers’ index improved to 50.1 in June from 40.7 in May. Markets had expected a more modest improvement to 45.2.

Cheese prices hit record in rare move

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The U.S. food supply has been deeply affected by the coronavirus pandemic. Prices have risen due to a shortage of items ranging from beef and chicken to fresh vegetables.

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Food chains have been disrupted as workers in plants have fallen sick.

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One item that has taken markets by surprise is the rise in the price of cheese.

Cheese prices hit a record high this month, just weeks after falling to nearly 20-year lows, according to The New York Times.

Cheese is traded on the Chicago Mercantile Exchange like other commodities.

HUNDREDS TEST POSITIVE AT TYSON FOODS PLANT IN ARKANSAS

Prices jumped to a record earlier this month at $2.58 a pound.

With restaurants and schools closed, demand fell. Although consumer demand picked up, it didn't make up for the overall slump.

Bulk prices for everything from mozzarella to Parmesan are being quoted now at a premium.

Those increases filter down to shoppers at the grocery store.

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People stockpiled cheese in March and April as consumers prepared for quarantines.

Bank of England Has Work to Do On Diversity, Bailey Says

The Bank of England still has some way to go to achieve its gender diversity targets, according to Governor Andrew Bailey.

Women now hold 32% of senior management roles, falling short of the central bank’s year-end goal of 35%. Progress on increasing the proportion of Black, Asian and Minority Ethnic staff in senior positions is also lagging.

The BOE has however hit its goal of 20% BAME representation among staff below the highest management level.

“We have a lot more to do, but I really do believe that actually through this process, we’ve achieved a great deal so far, and I welcome it,” Bailey said, speaking at a Treasury event on Women in Finance on Tuesday. “We’re a public institution, we serve the people of this country. We can only do that effectively if we bear sufficient resemblance to the people we serve.”

— With assistance by Lucy Meakin

European Economics Preview: Bundesbank Monthly Report Due

The June monthly report from Germany’s central bank is due on Monday, headlining a light day for the European economic news.

At 3.00 am ET, the Turkish Statistical Institute is set to release consumer confidence for June.

At 4.00 am ET, retail sales from Poland and foreign debt from the Czech Republic are due. Economists forecast retail sales to fall 12.9 percent on a yearly basis in May, following a 22.6 percent decrease in April.

At 6.00 am ET, Bundesbank releases its monthly report. The report outlines Germany’s economic outlook for 2020 to 2022 and features an article on the topic of cash withdrawals and payments in urban and rural areas.

In the meantime, the Confederation of British Industry publishes Industrial Trends survey data for June.