Currency Overview

The Rupee closed flat on Wednesday as major currencies were confined to a narrow band as investors assessed the outcome of the US presidential debate. Traders expect the debates to give some cues on how the election in November would pan out. Also there are signs of pick up in China's economic activity as well as progress on a new relief package in the US improved appetite for riskier assets in Asian trade. Banks are expected to sell the greenback for foreign portfolio investors' subscription to the ongoing initial public offer by two companies, namely UTI Asset Management Ltd and Mazagon Dock Shipbuilders Ltd. According to data on the RBI's website, the central bank has added $3.61 bln to its foreign exchange reserves on a net basis during September so far, taking these to $545.04 bln as on Sep 18. Crude oil futures ended lower on Tuesday because of worries of a rise in US supply of the commodity and the view that the second wave of coronavirus cases in Europe would hit demand for the energy commodity. Uncertainty before first US presidential debate also weighed on crude oil prices. Gold futures ended higher on Tuesday because of weakness in the US dollar against other currencies, which makes it cheaper for users of other currencies.