The rupee settled at 70.46 against 70.20 at the previous close. The
local unit moved in 70.05-70.6375 per dollar band intra-day.
The Indian rupee fell to a more-than-three-week low against the
dollar, underperforming most Asian currencies as continuous uptick
in crude oil prices renewed concerns of foreign fund outflows amid
expectation of wider current account deficit. There is no avenue for
fresh dollar inflows in local assets. Local shares are trading at a
significant premium as compared to the global equities, foreign
investors are unlikely to pump in money in India until risk from
higher crude prices and general elections stays.
Global Currency
The euro was pushed higher by a weaker dollar as investors turned
away from risk averse assets after the U.S. and China concluded
trade talks. The meetings were extended for a third day and China is
expected to release a statement on the results. The dollar strength
against a basket of six major currencies, fell 0.11% to 95.37.
The pound was slightly higher but remained under pressure on
Wednesday as the chances of British Prime Minister Theresa May’s
Brexit deal being passed were slim. British Prime Minister Theresa
May failed to win over the Northern Irish party which props up her
government to her Brexit deal on Wednesday, just hours before
lawmakers were due to resume a debate on the divorce accord.
Global Markets
Oil prices rose 2 percent on Wednesday as the extension of U.S.-
China talks in Beijing raised hopes that the world's two largest
economies would resolve their trade standoff. International Brent
crude futures LCOc1 were up $1.09, or 1.86%, at $59.81 per barrel.
Gold slipped for a second session on Wednesday as investors
regained appetite for risk on hopes of a breakthrough in U.S.-Chinese
trade talks, while palladium hit a record high. Spot gold XAU= was
down 0.3 percent at $1,280.95 per ounce.
