USD/INR closed at 70.7950 against its opening at 70.48. USD/INR rebounded afternoon and traded high Wednesday on buying by foreign banks amid likely overseas fund outflows from local stocks and surging Brent crude oil price.Deutsche bank, Bank of America, HSBC and Standard Chartered Bank were on the buy-side mostly on behalf of overseas investors who pulled out of local equities.
Bank of America, Development Credit Bank (DCB bank), Deutsche Bank, Standard Chartered Bank are the main sellers along with the foreign banks on likely on behalf of overseas fund inflows in local stocks. Also dollar remained subdued on optimism on US-China trade talks.
Indian shares opened higher Wednesday on positive global cues led by hopes of US-China iron out trade differences in order to boost global economy. The optimism reflects in strong investor appetite.
Meanwhile, investors would continue to eye earnings release for the near-term guidance. Earning releases so far were in the line of expectation while currency movement guided overseas investor participation.
Adding to that, the greenback remained subdued against major peers on the expectation of a breakthrough in the trade between US-China.
US president Donald Trump said on Tuesday that he could extend the deadline date for a trade agreement with China.
The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 96.80 at late Wednesday compared to 96.65 at opening of Indian market on wednesday .
Meanwhile, crude oil prices surged on Saudi Arabia's plan for the deeper supply cut. Saudi Arabia declared that it will reduce the oil production to nearly 9.8 million barrels/day in March.OPEC added that it have cut the oil production by almost 0.8 million bpd in January to 30.81 million bpd. Brent crude oil futures surged by 1.01% at $63.05 a barrel on Wednesday.
Sensex provisionally ends down 185 points with 22 components in the red.