The rupee settled at 69.68 against 69.90 at the previous close. The local unit moved in 69.49-69.79 per dollar band intra-day.
USD/INR ends flat on Wed amid caution ahead of Fed policy. Dollar/rupee in spot and offshore markets has rebounded in afternoon trades on Wednesday with dollar inflow hopes that weighed on the pair earlier in the day gradually fading as the US Fed's policy announcement time is nearing. It looks like some positioning adjustment just ahead of the FOMC event. Also the drastic upward movement in forward premia is impacting spo. The USD index, the gauge that measures the strength.
Global Currency
The dollar traded near two-week highs against the euro on Wednesday as investors waited to see whether the U.S. Federal Reserve would sound as dovish on future interest rate cuts and stimulus as the European Central Bank. The dollar, measured against other currencies, fell 0.1% to 97.561 .DXY from Tuesday's two-week high.
Sterling rose to $1.2575 after May inflation rose in line with expectations, although concern that eurosceptic Boris Johnson would become Britain's next prime minister is likely to cap any rally. Euro gained 0.1% to $1.1203 EUR=EBS , having fallen to a two-week low of $1.1181 on Tuesday after Draghi spoke and German government bond yields dropped to new record lows.
Global Markets
Oil prices ticked down on Wednesday as data suggesting a smaller-than-expected fall in U.S. crude inventories countered support from hopes for a U.S.-China trade deal. Brent crude futures LCOc1 were down 46 cents at $61.68 a barrel.
Gold prices fell on Wednesday as optimism over Sino-U.S. trade talks and hopes of rate cut from central banks hit demand for bullion ahead of the U.S. Federal Reserve's monetary policy decision later in the day.
