The rupee settled at 70.7950 against 70.70 at the previous close. The
local unit moved in 70.40-70.8550 per dollar band intra-day.
The Indian rupee fell for the first time in seven sessions against the
dollar, as importers stepped up greenback purchases, while reversal
in local shares raised concerns of foreign fund outflows that erased
early gains from upbeat risk sentiment and robust local economic
data. After opening higher, gains in the rupee were not sustained as
these levels remain attractive for oil and other importers, which
boosted demand for the dollar. U-turn in local shares and state-run
banks’ greenback purchases at higher levels also weighed on the
rupee.
Global Currency
After an eight-day winning streak, the dollar has finally pulled back in
early trading in Europe Wednesday, as demand for safe-haven assets
weakens on signs that the U.S. federal government won’t shut down
again this year. President Donald Trump said Tuesday he’s not happy
with a tentative deal in Congress that would allocate barely a quarter
of what he had sought for a wall on the U.S.’s southern border.
Sterling edged up to $1.2898 after the TV channel ITV (LON:ITV)
reported comments from U.K. Prime Minister Theresa May’s chief
negotiator Olly Robins in which Robins predicted May would offer
parliament in March a choice between her EU withdrawal deal or a
lengthy extension to the Brexit process.898
Global Markets
Gold prices inched up on Wednesday, supported by a weaker dollar
on hopes of a deal between the United States and China over a longdrawn
trade war, but improved risk appetite capped bullion's gains.
Brent oil prices rose on Wednesday, after top exporter Saudi Arabia
said it would cut crude exports and deliver an even deeper cut to its
production, while U.S. futures gained on a decline in domestic oil
inventories.
