The rupee settled at 71.11 against 71.34 at the previous close. The
local unit moved in 71.07-71.34 per dollar band intra-day.
The Indian rupee rose for the first time in five sessions to close at a
one-week high against the dollar, on bunched-up inflows after a
holiday and broad dollar weakness ahead of the Federal Reserve’s
latest meeting minutes later today. Bunched-up dollar inflows after a
holiday supported gains in the rupee, while expectation of dovish
minutes by the Fed weighed on the dollar, lifting emerging market
currencies. Rupee is stuck in a range on lack of momentum to
assume a trend at this point. Political uncertainty until elections,
coupled with geo-political concerns, will keep the lid on the rupee.
Global Currency
The dollar was lower against the euro and the British pound in early
trading in Europe Wednesday as a fall in U.S. Treasury yields reduced
its attractiveness amid expectations of dovish news on interest rates
from the Federal Reserve. The dollar is weighed with Treasury yields
on a downturn. Attempts by participants to price in potentially
dovish FOMC meeting minutes are also keeping the dollar on the
defensive.
The pound was higher against both dollar and the euro after a report
that Prime Minister Theresa May would drop efforts to push the socalled.
an attempt to break the deadlock over the status of the Irish
border after Brexit.
Global Markets
Gold prices were little changed on Wednesday in Asia as investors
awaited the minutes of the Federal Reserve's January meeting later
in the day. Gold futures traded at $1,345.55 per ounce.
Crude oil futures eased on Wednesday in light of the prospect of a
continued boom in U.S. shale oil output, although with OPEC
determined to restrict its own production to prevent a global surplus
of unused fuel, the price held just shy of 2019 highs.
