USDINR closed at Rs 68.62 compared to its opening at Rs 68.41.Dollar ended higher Wednesday on buying by foreign banks amid a strong greenback after Federal Reserve Chairman Jerome Powell maintained an upbeat outlook for the US economy thus hinting at the possibility of raising interest rates in September and one more time later in the year. Also, likely overseas fund outflows from local stocks further down-played the local currency against dollar.
FII inflows and selling by foreign banks on behalf of the exporters are keeping the rupee positive. Local stocks opened higher Wednesday on local fund buying after upbeat US economic outlook boosted investor risk appetite.
Jerome Powell, Chairman, Federal Reserve, upbeat assessment of the US economy and voicing his inability to forecast impact of trade dispute on the economy comforted investor nerves.
Powell told the lawmakers that strong economic growth and stable inflation should keep the central bank on track to gradually raise short-term interest rates.
"In general, countries that have remained open to trade, that haven't erected barriers including tariffs, have grown faster. They've had higher incomes, higher productivity.
BSE Sensex closed 146.52 points down at 36,373.44, while the Nifty 50 ended 27.60 points lower at 10,980.45.
GOLD
Gold prices on Wednesday held steady near a one-year low hit in the previous session, as the dollar firmed after Federal Reserve Chairman Jerome Powell’s U.S. economic outlook reinforced views the central bank is on track to steadily hike interest rates.
OIL
Oil prices dropped on Wednesday after an industry group reported that U.S. crude inventories rose last week, defying analyst expectations for a significant reduction.
ASIAN NEWS
Japan and the European Union signed a wide-ranging free trade deal on Tuesday that both sides hope will act as a counterweight to the protectionist forces unleashed by U.S. President Donald Trump.