Indian Rupee Off Highs As RBI Likely Steps In; Fed Outlook Eyed

The Indian rupee little changed at 70.10 pair now at 70.12 against 70.44 previous close.
Pair to tip in 69.50- 70.20 range today.
The Indian rupee came off the day’s high against the dollar in early trade, after at least two banks bought the greenback apparently on behalf of the central bank, trimming some gains triggered from crash in crude prices. The market is currently on sell on every rise in the USDINR pair after an over 5% drop in crude prices coupled with weak dollar on fading rate hike expectation from the U.S. central bank.

It was all about the Federal Reserve for the dollar on Wednesday, as it struggled to shake off expectations policy makers would slow the pace of U.S. monetary tightening after their keenly‐watched meeting later in the day.
Risk sentiment has been soured by weaker‐than‐expected economic data out of China and the eurozone, while the Sino‐U.S. trade dispute and a collapse in oil prices have added to fears the global economy is fast losing momentum. Nervous anticipation was palpable in global markets as they awaited the Fed's decision later in the day, especially for its policy guidance for 2019 after what is expected to be its fourth rate hike for this year.

Oil prices rebounded on Wednesday after falling for the past three sessions with worries about oversupply and a slowing global economy keeping markets under pressure though sentiment may be shifting as falling equity markets seemed to stabilize.
Gold prices edged higher to a more than five‐month peak on Wednesday as a softer dollar supported the bullion while investors awaited cues on the rate hike trajectory of the U.S. central bank from its two-day policy meeting. Spot gold was up 0.1 percent at $1,250.20 per ounce.

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