The rupee settled at 71.16 against 70.7950 at the previous close. The
local unit moved in 70.80-71.17 per dollar band intra-day.
The Indian rupee posted its biggest single-session fall in over a week against the dollar, on greenback purchases by importers amid a spike in crude prices, while faster U.S. inflation rate lifted the dollar. After the recent appreciation in the rupee, largely on back of dollar inflows along with rate cut and expectations of higher economic growth, some retracement was seen in the local unit on import buying. Also, the crude prices have edged higher making importers jittery. If the Brent crude prices sustain over $64.20 per barrel level for the next few sessions, it will keep the rupee under pressure
Global Currency
The euro and the British pound fell to multi-week lows against the
firmer U.S. dollar on Thursday as weak economic data out of the
euro zone and concerns over Brexit weighed. EUR/USD dipped 0.1%
to 1.1249 the weakest level since mid-November after data showing
that Germany’s GDP was flat in the fourth quarter, after a 0.2%
contraction in the previous quarter.
The pound was on the back foot, with GBP/USD down 0.14% to a
one-month low of 1.2824 ahead of a parliamentary vote later in the
day on Prime Minister Theresa May's plan for an agreement with the
European Union on the terms of its withdrawal from the bloc. Britain
is due to quit the EU on March 29.
Global Markets
Gold was little changed on Thursday as investors awaited clarity on
the ongoing trade talks between Washington and Beijing and the
U.S. government shutdown, with a strong dollar and stock markets
pinning prices near $1,300 an ounce.
Oil rose for a third day on Thursday to reach its highest so far this
year as financial markets drew support from investor optimism that
the United States and China could resolve their trade dispute.
