Indian Rupee Steady As Narrow Trade Gap Offsets Dollar Strength

The Indian rupee little changed at 71.06 pair now at 71.05 against 71.04 previous close.
Pair to tip in 70.80- 71.20 range today.
The rupee was little changed against the dollar after India’s trade deficit narrowed to a 10-month low, outweighing the greenback’s strength. Narrowing of trade data was slightly positive for the rupee, while some investors also cut their long-dollar positions on expectations of inflows from recent ECB borrowing by a few oil companies. However, persistent demand from importers and broad strength in the dollar will keep the gains in check.

The pound steadied on Wednesday but remained on the backfoot following a volatile overnight session after British lawmakers defeated Prime Minister Theresa May's Brexit divorce deal by a crushing margin. Parliament on Tuesday voted 432-202 against May's deal, the worst parliamentary defeat for a government in recent British history. Short-term focus is now on a confidence vote on May's government by lawmakers later in the day.
Dollar fell after opening higher Wednesday on selling by exporters taking advantage of the spike. Few exporters are selling although the trend will remain upwards for the rest of the day. The dollar index against a basket of six major currencies was effectively unchanged at 96.017 .DXY after climbing almost 0.5 percent the previous day.

Oil prices were steady on Wednesday as signs of a global economic slowdown were countered by OPEC-led supply cuts which helped support Brent crude futures above $60 per barrel.
Gold was little changed on Tuesday after British Prime Minister Theresa May's Brexit deal was rejected, as a rising dollar and stronger stock market dented the precious metal's appeal. Spot gold XAU= was unchanged at $1,289.35 per ounce.

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