The rupee settled at 71.56 against 71.7025 at the previous close. The local unit moved in 71.3625-71.60 per dollar band intra-day.
Dollar/rupee ended down Wednesday on likely FPI, corporate inflows on expectations of a likely dovish Fed July policy meeting minutes due for release later today. On the same ground, the dollar too turned weak overseas, adding to the downward pressure on spot. There was some amount of FPI inflows and corporate inflows weighing on spot today along with dollar weakness. Foreign banks including Bank of America, Barclays were on the sell-side. The dollar index, which tracks the movement of the dollar.
The U.S. dollar was hovering just below three-week highs in subdued trade on Wednesday as investors looked ahead to the minutes of the Federal Reserve’s July meeting later in the day for fresh clues on the monetary policy outlook. The Fed cut rates for the first time since 2008 last month in what Chairman Jerome Powell called a “mid-cycle adjustment.” Financial markets are still expecting further rate cuts before the end of the year against a background of heightened trade tensions and slowing growth.
The euro struggled to make headway against a resilient dollar on Wednesday while foreign exchange markets remained largely calm ahead of a crucial meeting of central bankers later this week. The euro weakened marginally to $1.1097.
Gold prices eased on Wednesday to hover around the $1,500 level as investors turned cautious ahead of minutes from the U.S. Federal Reserve's last meeting, which is expected to shed more light on interest rate cuts.
Brent crude oil futures rose above $60 a barrel on Wednesday after industry data showed a larger-than-expected drop in U.S. crude inventories, but lingering worries about a possible global recession capped gains.
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