India Rupee Gains As Powell Comments Weigh On Dollar

The Indian rupee little changed at 71.11 pair now at 70.9850 against 70.0625 previous close.
Pair to tip in 70.90-71.20 range today.
The Indian rupee edged higher against the dollar amid thin trading volumes, as the dollar index declined to a three-week low following Federal Reserve Chair Jerome Powell’s reiteration that a patient approach to monetary policy was warranted. Rupee has received some support from the weakness in the dollar. However, ongoing geopolitical worries and higher crude prices prompted traders to build long-dollar positions.

The dollar languished near three-week lows on Wednesday as a reaffirmation of a patient stance by Federal Reserve Chairman Jerome Powell and a newly resurgent pound kept U.S. currency bears in firm control. The dollar index against a basket of six major currencies stood at 96.113 .DXY after shedding 0.4 percent overnight, when it stooped to 95.948, its lowest since Feb. 5.
Sterling had 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 chaotic no-deal departure from the European Union. Pound was little changed at $1.1348 GBP=D3 after surging more than 1 percent overnight to a five-month peak of $1.3288.

Oil prices rose on Wednesday after a report of declining crude inventories in the country and as producer club OPEC seemed to stick to its supply cuts despite pressure from U.S. President Donald Trump. Brent crude futures were at $65.55 per barrel.
Gold prices were steady on Wednesday as the dollar stood near a three-week low after the Federal Reserve's chairman reiterated the U.S. central bank would stay patient on further interest rate hikes.

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