The rupee settled at 71.24 against 71.0350 at the previous close. The
local unit moved in 70.91-71.26 per dollar band intra-day.
The Indian rupee fell for a fourth straight session to a month-low
against the dollar, as concerns the federal government may deviate
from fiscal consolidation path weighed on local bonds, increasing
fears of more foreign fund outflows. Rupee was consolidating at
around 71 levels as positive trade data offset broad strength in the
dollar amid uncertainty after Brexit vote. However, dollar demand
from foreign banks rose on renewed concerns over fiscal slippage.
The rupee is well offered by exporters below 71 levels. Still, further
gains will be limited on month-end demand starting next week.
Global Currency
The pound firmed up on Wednesday following a plunge overnight
when the UK parliament overwhelmingly voted down Prime Minister
Theresa May's Brexit deal, adding to uncertainties surrounding the
UK’s withdrawal from the European Union. The parliament on
Tuesday voted 432-202 against May's deal, the worst parliamentary
defeat for a government in recent British history.
The euro slipped against the dollar and the pound on Wednesday as
worries about the outlook of the euro zone economy weighed on the
single currency while sterling edged higher before a no-confidence
vote on Prime Minister Theresa May's government.
Global Markets
Oil prices steadied on Wednesday after climbing about 3 percent in
the previous session on expectations that OPEC-led production cuts
will tighten supply and that possible Chinese stimulus might help the
global economy.
Gold held steady on Wednesday, supported by a slight retreat in the
dollar while gains were capped by a modest recovery in equities, as
caution set in ahead of a no-confidence vote on British Prime
Minister Theresa May's government.
