The rupee settled at 71.3350 against 71.4350 at the previous close.
The local unit moved in 71.15-71.37 per dollar band intra-day.
The Indian rupee rose for the first time in four sessions against the
dollar, tracking gains in most Asian currencies amid drop in crude oil
prices on subdued risk appetite. The movement in crude prices is
interconnected to risk appetite, so while drop in oil prices in positive
for the rupee, reducing risk appetite is equally adding pressure, and
vice-versa. Bunched-up dollar inflows after U.S. re-opened yesterday
also supported the currency. The upside in rupee is capped and the
currency is headed towards 72.50 levels on increasing concerns over
fiscal slippage.
Global Currency
The U.S. dollar was holding steady against a basket of its rivals on
Wednesday and the yen was broadly lower as risk sentiment
improved, but concerns over slowing global growth and U.S.-China
trade tensions looked likely to keep gains in riskier assets in check.
Sterling gained 0.5% against the greenback on Tuesday after data
showing that the U.K. labor market remained strong despite an
economic slowdown ahead of the looming deadline for Brexit on
March 29. Sterling is sitting close to its highs last seen in mid-
November.
Global Markets
Oil prices rose almost 1 percent on Wednesday on hopes that Japan
and China would take fiscal stimulus measures to stem an economic
slowdown which has weighed on financial markets. International
Brent crude oil futures LCOc1 were at $62.10 per barrel at 1040
GMT, up 60 cents or 0.98 percent, from their last close.
Gold held steady on Wednesday after posting its best daily gain in
two weeks in the previous session, with investors drawn to bullion as
global equities slipped on economic growth fears and the U.S.-China
trade dispute.
