The rupee settled at 70.17 against 69.4475 at the previous close. The
local unit moved in 69.53‐70.2350 per dollar band intra‐day.
The Indian rupee posted its biggest single‐session decline in one
month against the U.S. currency, as local shares slumped in line with
regional peers after disappointing Chinese data. Dollar rebound and
slump in local equities dragged the rupee, which was already reeling
under pressure due to weak global cues, to a one‐week low. A
bounce back in rupee towards 69 is expected once it touches the
technical 70.35 mark, Focus now remains on the U.S. non‐farm
payroll and unemployment rate data that can cause the coming
sessions to be volatile.
Global Currency
The euro weakened 0.2 percent against the dollar to $1.1438.
Traders expect the single currency to remain under pressure as both
growth and inflation in the eurozone remain below the European
Central Bank's expectations.
Safe‐haven currencies such
Safe‐haven currencies such as the Japanese yen rose against the
dollar on Wednesday as caution prevailed on the first trading day of
the new year, amid growing concern about the U.S. government
shutdown and spluttering global growth. The yen, which tends to
benefit during geopolitical or financial stress, has strengthened for
three straight weeks and was the best performing major currency in
2018. In the last four days alone, it has gained 2.2 percent.
Global Markets
Oil fell to around $53 a barrel on Wednesday, pressured by rising
output in major OPEC and non‐OPEC producers and concern about
an economic slowdown that could weaken demand.
Gold scaled a more than six‐month peak on Wednesday as the dollar
fell along with Asian equities after disappointing data from China
cemented fears of a slowdown in global economic growth. Spot gold
was up 0.28 percent at $1,285.71 an ounce.
