USD/INR closed at 69.66 against its opening of 69.67. USD/INR ended lower on as the cooling oil prices weakened dollar demand in the domestic market while largely higher Asian shares have fulled hopes of overseas inflows to the Indian equities as well.
DefInitely, oil is helping rupee today. But the market is going to be a tightly traded one as election results are the most important factor everyone is looking at. Brent crude for July deliver was at $71.78/bbl, down 0.55% on the day.
Rising inventories in the US and the latest Saudi rhetoric conveying their readiness to keep the prices balanced helped cool oil prices on Wednesday.The American Petroleum Institute said on Tuesday that crude stockpiles in the US rose by 2.4 million barrels last week, to 480.2 million barrels, compared with analysts' expectations for a decrease of 599,000 barrels. Government data is due later on Wednesday.
Saudi Arabia on Wednesday said it was committed to a balanced and sustainable oil market. The Kingdom has been insisting for supply cuts in the producer club OPEC.At the same time, caution ahead of the election results and the overall strength in the dollar are supporting the pair.The dollar index that measures the greenback's strength against a basket of majors was trading above 98.
Sensex gains 150 points in early session with 21 components in the green.