USD/INR opens up on higher oil prices, risk on sentiments

The Indian rupee little changed at 71.84 pair now at 71.78 against 71.70 previous close.
Pair to tip in 71.65-71.90 range today.
Dollar/rupee opened up Wednesday tracking higher crude oil prices, while drooping sentiments ahead of European Central Bank policy further supported dollar demand. Crude oil prices are trading higher moving towards $63 a barrel. Also, risk-on sentiment ahead of ECB policy is supporting dollar demand. The dollar remained supported against its major peers as investors remained cautious ahead of the ECB policy due on Thursday, September 12, where its is expected to push interest rates even further into negative territory.

Fragile investor confidence supported the dollar and weakened the yen on Wednesday but currency markets kept to tight ranges ahead of series of major central bank meetings over the next week. Investor focus for now is centred on the European Central Bank's meeting on Thursday, which is expected to push interest rates even further into negative territory. The ECB could set the tone for upcoming rate-setting decisions by the U.S. Federal Reserve and the Bank of Japan next week, and for the broader global risk appetite.
the pound has held on to last week's gains after British parliament passed a law compelling Prime Minister Boris Johnson to seek a delay to the Oct. 31 date for leaving the European Union. Sterling last traded at $1.2353.

Gold prices edged up on Wednesday, but hovered near a four-week low hit in the previous session as risk appetite improved amid hopes of an interest rate cut by the European Central Bank and fiscal stimulus measures from Germany, Europe's largest economy.
Oil prices rose on Wednesday after an industry report showed that crude stockpiles in the U.S. fell last week by more than twice the amount that analysts had forecast.

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