The rupee settled at 68.82 against 68.9675 at the previous close. The
local unit moved in 68.71 -69.17 per dollar band intra-day.
The Indian rupee reversed early losses to settle higher against the
dollar, helped by exporters’ dollar sales and expectation of foreign
fund inflows into local assets. However, likely intervention by the
central bank and caution ahead of outcome of the Federal Reserve’s
two-day meeting later today limited further gains in local unit, The
spot dollar/rupee pair made a decent recovery from its low of 68.35.
Now, the focus remains on the Fed’s policy outcome. We believe
most of the positives have been already price in the rupee.
Global Currency
The dollar rose on Wednesday, attracting safe-haven bids after
reports of further tension in U.S.-China trade negotiations, but its
gains were slight, with caution expected from the Federal Reserve at
its policy meeting later in the day. Volatility in foreign exchange
markets has plummeted due to a dovish shift by major central banks
including the U.S. Federal Reserve.
The pound has retreated a little after reports suggesting the EU will
take a hard line with any request from Prime Minister Theresa May
to push back the March 29 deadline for Brexit. EU leaders are due to
start a summit in Brussels later today, and May is expected to
present her request on Thursday morning.
Global Markets
Gold prices snapped three consecutive sessions of gains on
Wednesday as the dollar firmed, while investors awaited the results
of the U.S. Federal Reserve's policy meeting later in the day.
Oil prices fell on Wednesday, dragged down by concerns about
global economic growth as the U.S.-China trade dispute rumbled on,
but receiving some support from tightened supply. U.S. West Texas
Intermediate (WTI) crude futures CLc1 were at $58.51 per barrel.
