The rupee settled at 71.5525 against 71.56 at the previous close. The
local unit moved in 71.50-71.6725 per dollar band intra-day.
The Indian rupee was steady against the dollar, as investors
remained on the sidelines awaiting monetary policy decision at
home tomorrow. Nervousness in the market persists ahead of the
MPC decision that impacted volumes. Further, since most
participants wrapped up their positions, some importers’ bids
caused weakness in the local currency, But gains in local shares and
oil supported market sentiment that led to rupee’s movement
getting confined in a range today. ndia’s Monetary Policy Committee
is due to release its policy statement at 11:45 a.m. tomorrow.
Global Currency
The U.S. dollar rose to its highest in over a week against the euro in
early trading in Europe Wednesday, after more soft data from
Germany underlined the loss of momentum in the euro zone's
traditional growth engine. Incoming orders to German factories fell
by 1.6% in December, their second straight monthly drop and the
biggest monthly fall since June.
The British pound also slipped to a two-week low of $1.2926 after
reports that Prime Minister Theresa May had accepted that the socalled
“Irish backstop” would have to be a part of any withdrawal
agreement it signs with the European Union.
Global Markets
Crude oil to the U.S. from OPEC and its partners fell to 1.41 ml
barrels a day in January, the lowest in five years, according to data
from cargo-tracking and intelligence company Kpler. Shrinking Iraqi
imports and deep output cuts by Saudi Arabia fueled the decline.
The prevalent USD buying interest exerts some fresh downward
pressure. • Bears seemed rather unaffected by a slight deterioration
in risk sentiment. • A modest pullback in the US bond yields have
also failed to lend any support. Spot gold edged 0.1 % higher.
