The rupee settled at 71.22 against 71.0625 at the previous close. The
local unit moved in 70.9450 -71.48 per dollar band intra-day.
The Indian rupee logged its biggest single session fall in about two
weeks against the dollar, as hostilities between India and Pakistan
escalated, even as leading economies urged both countries to show
restraint. The news flow proved to be negative for the currency and
markets will closely watch for further development on the
geopolitical front and whether there is more possibility of it to
intensify. However, the losses were contained as participants are not
carried away with the noise because it is largely believed that the
situation does not warrant a big panic as of now.
Global Currency
The dollar and the yen edged up slightly on Wednesday following a
rise in regional tensions after Pakistan said it shot down two Indian
aircraft, buoying safe-haven units such as the U.S. and Japanese
currencies. The dollar index against a basket of six major currencies
was up 0.15 percent at 96.155 .DXY , trimming some of the previous
day's losses.
The pound rallied on Tuesday after British Prime Minister Theresa
May offered lawmakers the chance to vote on delaying Brexit,
opening up the possibility of avoiding a no-deal Brexit. The British
currency was trading near 21-month highs against the euro, with
EUR/GBP down 0.24% to 0.8576.
Global Markets
Oil rose for a second day on Wednesday, buoyed by an unexpected
decline in U.S. crude inventories and after Saudi Arabia appeared
undaunted by pressure from U.S. President Donald Trump on OPEC
to prevent steeper price rises.
Gold held steady on Wednesday as the dollar traded near threeweek
lows, after U.S. Federal Reserve Chairman Jerome Powell
reiterated that the central bank will patient in hiking interest rates.
