The rupee settled at 72.1150 against 72.40 at the previous close. The local unit moved in 71.9650-72.2850 per dollar band intra-day.
Dollar/rupee ended down Wednesday tracking the weakness in greenback following the contraction in the US manufacturing sector. Also, higher Chinese yuan further supported the spot rupee. Mainly weak dollar led by slow manufacturing sector growth in US has caused today's fall in spot. Also, the Chinese yuan recovery is supporting the local currency. Chinese yuan is supported today by a positive Caixin services PMI data, following which Indian rupee found some support.
Global Currency
The dollar extended its fall on Wednesday following disappointing manufacturing data, helping the euro to recover from more than two-year lows. The dollar's pullback was prompted by manufacturing activity in the world's biggest economy contracting for the first time in three years last month, data from the Institute for Supply Management published on Tuesday showed. knocked the wind out of a previously rising greenback and spurred a further bond rally as investors increased.
The euro rebounded on Wednesday as comments from European policymakers introduced some doubt over the scale of a European Central Bank stimulus package expected next week, while investors sold the dollar for riskier currencies.
Global Markets
Gold dipped on Wednesday as investors booked profits after a 1% jump in the previous session and as political risks in Europe and Asia receded, but concerns over the global economy and the China-U.S. trade war kept bullion close to a six-year peak.
Oil prices rose on Wednesday, boosted by a wider market pickup on positive news from China's services sector, after three days of losses on lingering fears about a weakening global economy. Brent crude LCOc1 was up 46 cents, or 0.79%, at $58.72 a barrel.
