The Indian rupee little changed at 69.52 pair now at 69.67 against
69.4475 previous close.
Pair to tip in 69.45- 69.85 range today.
The Indian rupee fell against the dollar in early trade, tracking losses
in most Asian currencies and shares following weaker‐than‐expected
China factory activity data in a holiday-thinned trade. Weak Asian
cues added pressure on the rupee. However, dollar inflows are
expected in the new year, limiting further downside in the local unit.
The rupee faces a strong resistance at around 68.85 levels against
the dollar, break of which on a weekly basis will extend the local
unit’s appreciation towards 66 levels. However, break of 68.85 looks
unlikely given the fiscal and political uncertainty
Global Currency
Safe-haven currencies such as the yen rose against the dollar on
Wednesday, as a cautious mood prevailed on the first trading day of
the year on concerns over global growth, the U.S. government
shutdown and a slower pace of Federal Reserve rate hikes. The yen
gained 0.3% against the dollar to 109.39 in Asian trade. Trading
volumes remained light as global markets reopened after the New
Year's Day holiday. Japanese markets remain closed on Wednesday.
The euro slipped 0.16% to $1.1446. Trader expect the single currency
to remain under pressure as both growth and inflation in the
eurozone remain below the European Central Bank's expectations.
The euro lost 4.4 percent of its value versus the dollar in 2018.
Global Markets
Oil markets dropped by around 1 percent in 2019's first trading on
Wednesday, pulled down by surging U.S. output and concerns about
an economic slowdown in 2019 as factory activity in China, the
world's biggest oil importer, contracted.
Gold prices edged lower on Wednesday as Asian equities won
support on the first day of the new year from gains in U.S. stock
futures, pointing to an improvement in risk appetite.
