The Indian rupee little changed at 70.7750 pair now at 70.98 against
70.93 previous close.
Pair to tip in 70.70- 71.10 range today.
Indian rupee weakened sharply on Tuesday on "chunky outflows"
with no intervention seen by the Reserve Bank of India, The rupee
breached the crucial 71 to the dollar mark in early trade, There have
been chunky outflows for the last two days. The impact of the retail
inflation and broad weakness in the dollar waned as importers and
foreign banks stepped up dollar purchases, he added on any
intervention noticed by the central bank through state banks to stem
the sharp fall in the rupee.
Global Currency
The dollar weakened on Tuesday on heightened expectations the
Federal Reserve will hold off on raising rates this year due to a
slowdown in global growth, while sterling edged up ahead of
Britain's parliamentary vote on its Brexit plan. Worries over the U.S.
economy losing steam as well as a shock contraction in Chinese
trade have fanned worries about a sharp global slowdown.
Sterling will be in focus as British Prime Minister Theresa May must
win a vote in parliament later on Tuesday to get her Brexit deal
approved or risk a chaotic exit for Britain from the European Union.
The numbers are not in May's favour and her chances of winning the
vote look extremely slim. May needs to secure 318 votes to win.
Global Markets
Oil prices rose 1 percent on Tuesday amid supply cuts led by
producer club OPEC and Russia, although a darkening economic
outlook capped gains. International Brent crude oil futures LCOc1
were at $59.64 per barrel.
Gold prices held steady on Tuesday, supported by market
expectations of fewer interest rate hikes in the year by the U.S.
Federal Reserve, while a bounce in Chinese equities stoked interest
in riskier assets.
