The rupee settled at 71.07 against 71.02 at the previous close. The local unit moved in 70.94-71.21 per dollar band intra-day.
Dollar/rupee ended up Wednesday ahead of US-China trade talks to be held on Oct 10 and weak risk sentiments. We are keeping an eye on US-China trade talks as relationship between both the countries worsened before the talks. Rupee ended 5 paisa up today. US-China trade concerns are hurting the risk sentiments in the market after Washington blacklisted some Chinese firms over their alleged treatment of Muslim minorities. The situation can worsen further after the US Commerce Department's move which has already triggered financial markets and global economy.
Global Currency
The dollar was a touch lower against the euro in early trading Wednesday, trading in narrow ranges in almost all pairs as markets used a lull in the data calendar to digest the contents of FR Chairman Powell’s speech on Tuesday. Powell had said that the Fed will soon start expanding its balance sheet again. He took pains to stress that this was not the resumption of quantitative easing.
The British pound was bumping along the lower end of a new range after falling on Tuesday to a one-month low on the latest twist in the Brexit negotiations. The near-breakdown of talks amid increasingly bitter exchanges between London and other European capitals ought logically to increase the risk of a disorderly “No-Deal Brexit”.
Global Markets
Oil rose on Wednesday following media reports that China was open to agreeing a partial trade deal with the United States, while unrest in OPEC members Iraq and Ecuador also supported prices.
Gold held steady on Wednesday on uncertainty over U.S.-China trade talks and Britain's exit from the European Union, ahead of minutes from the U.S. Federal Reserve's September meeting, which could shed light on future interest rate cuts.
