India Rupee Gains On Exporters’ Dollar Sales; Fed Outcome Eyed

The rupee settled at 68.82 against 68.9675 at the previous close. The local unit moved in 68.71 -69.17 per dollar band intra-day.
The Indian rupee reversed early losses to settle higher against the dollar, helped by exporters’ dollar sales and expectation of foreign fund inflows into local assets. However, likely intervention by the central bank and caution ahead of outcome of the Federal Reserve’s two-day meeting later today limited further gains in local unit, The spot dollar/rupee pair made a decent recovery from its low of 68.35. Now, the focus remains on the Fed’s policy outcome. We believe most of the positives have been already price in the rupee.

The dollar rose on Wednesday, attracting safe-haven bids after reports of further tension in U.S.-China trade negotiations, but its gains were slight, with caution expected from the Federal Reserve at its policy meeting later in the day. Volatility in foreign exchange markets has plummeted due to a dovish shift by major central banks including the U.S. Federal Reserve.
The pound has retreated a little after reports suggesting the EU will take a hard line with any request from Prime Minister Theresa May to push back the March 29 deadline for Brexit. EU leaders are due to start a summit in Brussels later today, and May is expected to present her request on Thursday morning.

Gold prices snapped three consecutive sessions of gains on Wednesday as the dollar firmed, while investors awaited the results of the U.S. Federal Reserve's policy meeting later in the day.
Oil prices fell on Wednesday, dragged down by concerns about global economic growth as the U.S.-China trade dispute rumbled on, but receiving some support from tightened supply. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $58.51 per barrel.

Date	Time	Currency	Event	Actual	Forecast	Previous
20-03-2018	15.00	GBP	CPI (YoY) (Feb)	1.9%	1.8%	1.8%

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