USD/INR closed at 69.11 against its opening at 69.28. Dollar/rupee ended over one-week low Wednesday on inflows related to Vodafone-Idea right issue and Arcelor-Mittal deal.Inflows from Vodafone-idea right issue and Arcelor-Mittal deal supported rupee.
Vodafone-Idea right issue will open on Apr 10, 2019. The issue sized is around Rs 250 billion and it is expected that around Rs 180 billion might come from foreign investors. The National Company Law Appellate Tribunal (NCLAT) on Tuesday stated that it may direct Arcelor-Mittal to deposit Rs 420 billion for the acquisition of debt-ridden Essar Steel in its next hearing on Apr 23.
The European Central Bank kept its policy unchanged as expected on Wednesday, maintaining interest rates at record lows and keeping its guidance for steady interest rates this year despite a sharp slowdown in economic growth. European Central Bank (ECB) decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively. The Governing Council expects the key ECB interest rates to remain at their present levels at least through the end of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term.
Also, crude oil prices retreated after Russia signals the possible of easing of the supply cutting deal with OPEC.However, concern of the war in Libya that could further tighten the global market, continued supporting prices.Brent futures for June delivery traded 0.03% down at $70.63 a barrel on Wednesday.
Meanwhile, the greenback surged against other major currencies over the global growth concerns after International Monetary Fund lowers 2019 global growth forecasts.The dollar index, movement of the greenback against a basket of six major currencies, traded at 96.91 late Wednesday compared to 97.02 at open of Indian market on wednesday.
The IMF on Tuesday lowered its global growth forecast for 2019 to 3.3% in the newly-released World Economic Outlook report, down 0.2% point from its estimation in January.
Sensex provisionally ends 371 points lower with 23 components in the red.