The rupee settled at 68.81 against 68.71 at the previous close. The local unit moved in 68.68-68.89 per dollar band intra-day.
Dollar/rupee ended up Monday on buying by nationalised banks likely on behalf of oil importers amid a strengthening greenback after an upbeat US retail sales data. Also, swollen risk sentiment after US President Donald Trump's comment on US-China trade agreement further supported demand for dollar. Natioanlised banks including State Bank of India, Bank of Baroda, and Canara Bank bought dollars. PSBs bought mostly for oil importers. Dollar also strengthened from previous session after strong US retail sales data.
Global Currency
The British pound fell to its lowest in more than two years in early trading in Europe Wednesday as fears over a “Hard Brexit” and a possible general election exacted a higher risk premium for all sterling assets. The pound fell nearly 1% on Tuesday against the dollar and continued its decline on Wednesday. By 3:45 AM ET (0745 GMT), it was at $1.2393, having fallen below $1.24 for the first time since April 2017. Sterling was also lower against the euro, tumbling as far at 1.1047, its lowest since September 2017,
The euro was also under some pressure after a far-from-convincing confirmation of Ursula von der Leyen as the European Commission’s new president. Von der Leyen’s nomination passed by a majority of less than 10 in the EU parliament
Global Markets
Gold prices edged lower on Wednesday, as the dollar firmed on robust U.S. retail sales data, while hopes of an interest rate cut by the Federal Reserve and broad uncertainties over trade between Washington and Beijing kept a lid on declines.
Oil prices on Wednesday regained little ground lost in the previous session, weighed down by industry data suggesting U.S. crude inventories fell less than expected.
