Owning to the trade talks between U.S. and China, the global stock market has experienced a stir, the rupee closed flat at 71.07 against the U.S. dollar.
On the other hand, the rupee opened at 70.96 at the interbank foreign exchange market against the U.S. dollar. The domestic unit wavered between a high of 70.87 and a low of 71.15, after finally settling at 71.07.
“Ahead of today's scheduled meeting between the world's largest economies, we did not see much participation in USD/INR, the pair traded in a very tight range," commented Rahul Gupta, Emkay Global Financial Services Head of Currency.
China in the other hand is hoping to crack a business deal with the US as a result of facing adversaries of maintaining the economy. "Market participants are now awaiting for fresh updates from the meeting that will be held in the next couple of sessions between US and Chinese officials and any progress on the same could extend gains for the rupee," explained Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services Private Ltd.
In addition, with regards to provisional data, foreign funds withdrew Rs 485.24 crore from the capital markets on net basis on Wednesday. The dollar index which judges six currencies dropped 0.40 percent to 98.72.
The global oil benchmark, Brent crude futures, climbed 0.24 percent to trade at USD 58.46 per barrel.
The Financial Benchmark India Private Ltd (FBIL) announced the reference rate for rupee/dollar at 71.1121 and for rupee/euro at 77.9284. Furthermore, the reference rate for rupee/British pound was decided at 86.7904, while for rupee/100 Japanese yen at 66.35.
On the domestic front, the 30-share Sensex settled at 297.55 points, or 0.78 per cent, which is less at 37,880.40. Furthermore, broader NSE Nifty dropped 78.75 points, or 0.70 per cent, and closed at 11,234.55.
Tags : Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services Private Ltd, Brent crude futures, Financial Benchmark India Private Ltd,