The rupee settled at 72.01 against 71.85 at the previous close. The
local unit moved in 71.8750‐72.20 per dollar band intra-day.
The Indian rupee fell for a third day to a four‐week low against the
dollar, on rising bets over interest rate cuts after appointment of a
former bureaucrat as the new governor of the central bank, amid
prediction of inflation easing going ahead. The political risks after the
election outcome and some uneasiness in the market following the
appointment of the new governor is hurting the rupee.
Global Currency
The dollar held near a one‐month high against its peers on
Wednesday, supported by a rebound in U.S. government bond yields
and weakness of the pound as its battering from uncertainty about
Brexit continued. The dollar index (DXY) versus a basket of six major
currencies stood at 97.387 after rising overnight to 97.545, its
highest since Nov. 13.
The British pound edged higher on Wednesday, following news that
Prime Minister Theresa May will face a vote of no‐confidence from
members of her own Conservative party later in the session. The
pound was on the front foot, with GBP/USD was up around 0.4% at
1.2535 after dropping to as low as 1.2478 overnight, its weakest
since April 2017.
Global Markets
Oil rose to about $61 a barrel on Wednesday, supported by an
industry report showing a drop in U.S. crude inventories, a cut in
Libyan exports and an OPEC‐led deal to trim output.
Gold prices climbed on Wednesday morning in Asia, despite
indications that the Federal Reserve might be more dovish on
interest rates. Gold Futures for February delivery rose 0.18% to
$1,250.55 on the Comex exchange.
