The rupee settled at 68.87 against 68.86 at the previous close. The
local unit moved in 68.7575-69.02 per dollar band intra-day.
The Indian rupee was little changed against the dollar, as investors’
muted appetite for risk assets offset gains from corporate inflows.
Global risk appetite has slightly weakened that had an impact on
rupee today, while higher crude oil prices and inching up of the
dollar index also exerted pressure on the local currency. However,
rupee has stabilized after the recent swap auction and is expected to
witness some consolidation in near term. Market will keep a close
eye on U.S.-China trade talks for more cues.
Global Currency
The dollar is higher against most of its peers early Wednesday in
Europe as a steady drumbeat of gloomy news about the economic
outlook keeps a firm cap on risk appetite. U.S. housing and consumer
confidence data both fell short of expectations Tuesday. The dollar
index against a basket of six major currencies, was at 96.442
Sterling was also higher against the euro in early trade ahead of a
series of ‘indicative votes’ in parliament on alternatives to Prime
Minister Theresa May’s EU Withdrawal Agreement. The votes are
due in the evening in London. However, May’s deal is not yet dead: a
number of hard-line Brexiteers signalled on Tuesday that they would
back it rather than risk Brexit being cancelled altogether.
Global Markets
Gold prices inched up on Wednesday as a lacklustre stock market
and falling bond yields reflected worries about a global economic
slowdown and lifted safe-haven assets.
Oil prices declined on Wednesday, reversing earlier gains, as further
disruptions to Venezuela's crude exports were offset by a report that
U.S. inventories rose last week. Brent crude futures LCOc1 were
down 22 cents, or 0.32 percent, to $67.75 a barrel.
