The Indian rupee little changed at 70.48 pair now at 70.49 against
70.70 previous close.
Pair to tip in 70.30-70.60 range today.
The Indian rupee advanced to a one-month high against the dollar in
early trade, as demand for risk assets was boosted by expectations
of a trade deal between the U.S. and China. The rupee is being
supported by dollar inflows in local markets. It also got a further
boost from gains in most emerging currencies. Expectations of a rate
cut at home have also gained ground after lower-than-expected
inflation data, increasing hopes of more foreign fund inflows.
Global Currency
The dollar edged lower versus its peers on Wednesday, as rising
hopes of a breakthrough in U.S.-China trade talks led investors to put
money into the euro and Asian currencies. We seem to have moved
away from dollar dominance over the last two sessions...this
weakness is directly related to the improving risk sentiment around
trade.
Sterling GBP gained 0.1 percent to $1.2900. Traders expect the
British pound to remain volatile over the coming weeks as a Brexit
deadline looms. The United Kingdom is on course to leave the
European Union on March 29 without a deal unless Prime Minister
Theresa May can persuade the bloc to amend the divorce deal she
agreed last year.
Global Markets
Oil prices rose by around 1 percent on Wednesday as producer club
OPEC said it had deeply cut supply in January and as U.S. sanctions
hit Venezuela's oil exports. U.S. West Texas Intermediate (WTI) crude
oil futures CLc1 were at $53.64 per barrel.
Gold firmed slightly on Wednesday as investors held onto the safehaven
metal while seeking more clarity on Sino-U.S. trade talks, and
as volatility in the dollar provided further support.
