The rupee settled at 71.65 against 71.70 at the previous close. The local unit moved in 71.60-71.84 per dollar band intra-day.
Dollar/rupee ended down Wednesday on overseas inflows in to local stocks as global risk appetite improved after China waved-off tariff on US imports prompting exporters to sell their dollar holding. The spot ended down on FPI inflows. Foreign banks such as BoA sold dollar. China removed import tariffs on more than a dozen US goods. This the first time China issued such exemptions since the US-China trade war began. They issued tariff exemptions on 16 products including shrimp fish meal and cancer treatment drugs.
Global Currency
The euro dipped on Wednesday but most investors stuck to the side lines ahead of a key European Central Bank meeting on Thursday, with the scale of an expected monetary easing package from euro zone policymakers uncertain. Expectations that policymakers will push interest rates even further into negative territory have weighed on the euro EUR, which has shed 3% since June.
The Chinese yuan CNY= briefly jumped and extended its recent recovery after the editor of the Global Times, a widely read Chinese tabloid published by the ruling Communist Party's official People's Daily, tweeted that China would introduce measures to mitigate the impact of the trade war. offshore yuan later shed those gains and was last at 7.11 yuan per dollar CNH=EBS , unchanged on the day
Global Markets
Oil prices rose on Wednesday after a reported sharp drop in U.S. crude stocks and OPEC member Iraq said the producer group would discuss deepening output cuts amid ongoing demand concerns.
Gold rose on Wednesday, supported by lingering concerns over the global economy and U.S.-China trade tensions, but still held close to a four-week low touched last session amid a broader uptick in risk-sentiment ahead of major central bank meetings.
