The rupee settled at 72.37 against 72.9750 at the previous close. The local unit moved in 72.34-72.88 per dollar band intra-day.
The Indian rupee posted its largest single-session gain in almost four months against the dollar, boosted by expectations that the federal government may announce measures to stem further depreciation in the currency. The rupee also reacted favorably to reports on the steel ministry’s proposal to raise the effective import duty on some products and the central bank studying possibility of oil companies directly purchasing dollars from it instead of the open market. Indian financial markets will remain shut tomorrow for a local holiday.
Global Currency
The dollar neared a seven-week low against a basket of other currencies on Wednesday, while commodity currencies advanced on relief that the latest round of tariffs announced by China and the United States were not as harsh as the market expected.
The Dollar has gained nearly 6 percent since concerns of trade wars shot into the spotlight as markets bet that a strong U.S. economy and safe-haven demand for the dollar would push the dollar higher.
The pound hit a high of $1.3175, its highest level in almost eight weeks and last stood flat at $1.3169 GBP=D3 . It hit a seven-week high of 0.8865 pound per euro.
Global Markets
Oil eased on Wednesday, but held near its highest level this year, as concerns that producers may fail to cover a supply shortfall once U.S. sanctions on Iran come into force outweighed an increase in U.S. inventories. Brent crude futures were down 15 cents at $78.88 a barrel
Gold prices rose on ednesday along with equities as the U.S. dollar softened, with markets showing little worry over the latest escalation in the U.S.-China trade war. Spot gold XAU= climbed 0.4 percent to $1,202.32 an ounce.
