USD/INR closed at 69.5350 against its opening at 69.74. USD/INR ends down on likely FII Inflow Into the Local stocks, subdued dollar post weak US Consumer Price Index yesterday. Rupee appreciated as weak dollar offset oil bids in the market. Foreign banks including HSBC and Bank of America were selling in the spot.
USD/INR in the non-deliverable forward market maturing in one month traded at Rs 69.75/$1 during European trades and Rs 69.82/$1 at start of Indian market Wednesday. The pair traded at Rs 69.96/$1 at close of Indian market on Tuesday.
The greenback remained subdued against its major peers after a weaker than expected US Consumer Index Price (CPI) as despite of tight labour market the inflation remained low. Dismal inflation prints support the Federal Reserve's case for keeping the interest rate on hold.
The dollar index, greenback against a basket of six major currencies, traded at 96.88 late Wednesday compared to 97.01 at early opening of Indian market.
US Consumer Price Index excluding food and energy released by US department of labour statistics came at 0.1% compared to 0.2% expected by market participants.US Consumer Price Index on yearly basis stood at 1.5% compared to 1.6% expected by market participants. On monthly basis, US Consumer Price Index on came at 252.77, slightly lower than market expectation of a figure of 252.87.
Meanwhile, crude oil prices traded higher as massive power outage in Venezuela is impacting the country's oil exports, putting pressure on overall supply. Adding to that, Saudi Arabia continued the supply cut, keeping its April oil exports at below the required level of an OPEC led supply cutting deal.
Supply cut by OPEC members and US sanction on Iran and Venezuela are also supporting oil prices.The Saudi official said, that despite demand for more than 7.6 million bpd of Saudi oil for April, they will ship below 7 million bpd next month-a deep cut of 635,000 bpd from customer requests for its crude oil. Brent futures for May delivery traded 0.27% up at $66.85 a barrel on Wednesday.
Sensex provisionally ends 218 points higher with 14 components in the green.