The Indian rupee little changed at 69.88 pair now at 69.94 against
70.1350 previous close.
Pair to tip in 69.60- 70.00 range today.
The Indian rupee rose against the dollar in early trade, tracking a
plunge in Brent crude prices to a 17‐month low amid broad
weakness in the dollar. Decline in oil prices is the key factor for the
appreciation in the rupee. Volumes will remain subdued as state‐run
banks are on strike today. Focus will be on fund flows after
yesterday’s holiday.
Global Currency
The dollar was broadly lower on Wednesday, pressured by a cocktail
of negative factors including heightened concerns over the partial
U.S. government shutdown and tension between the White House
and the Federal Reserve. Fears of a U.S. and global economic
slowdown have sent U.S. 10‐year yields tumbling by around 25 basis
points in December, adding to the increasing strain on the dollar and
further darkening its outlook.
The dollar has struggled particularly against the yen, losing ground
for eight straight sessions as a broad risk‐off move in financial
markets benefited the safe‐haven Japanese currency. It tried to
steady in early Asian trade, edging up 0.3% on the yen to 110.64.
Global Markets
Oil prices were mixed in thin trading on Wednesday as the U.S.
benchmark rebounded from steep losses in the previous session,
even though concern over the health of the global economy
continued to overshadow the market in the longer term.
Gold prices inched lower on Wednesday as the dollar firmed but
hovered near a six‐month high, supported by political instability in
the United States and concerns about a global economic slowdown.
U.S. gold futures GCv1 were down 0.3 percent at $1,268.10 per
ounce.
