USD/INR closed at 68.42 against its opening at 68.76. USD/INR ends down Wednesday on likely FII inflows into the local stocks and improved risk appetite of investors after the US-China trade optimism amid subdued dollar.
Deutsche Bank, DBS, BNP Paribus, and HSBC were the main seller along with other foreign banks on likely overseas inflows into the local stocks. Also improved risk appetite of investors after the US-Sino are closer to their final trade agreement are supporting the rupee.
US-China officials are negotiating a trade deal have resolved most of the outstanding issues, both the countries are closer to their final trade agreement but still negotiating over the how to implement and enforce such an agreement.
China wants to US to remove the existing US tariffs on Chinese goods and US want China to agree the terms of an enforcement mechanism ensuring it abides by the deal.US Chamber of commerce told reporters that 90% of the deal is done but the final 10% final trickest part of the negotiations remains and would required the trade-offs from both the side.
The dollar index, greenback against a basket of six major currencies, traded late at 97.03 wednesday compared to 97.31 at opening of Indian market on wednesday .Adding to that, the greenback remained subdued against it major pairs after lower than expected economic data released on Tuesday and improved risk appetite of investors after the US-China trade optimism.
US durable goods orders excluding transport released by US census bureau dropped to 0.1% in February from 0.2% expected by market participants.US durable goods orders excluding defence released by US census bureau dropped to -1.9% in February from 0.4% of its previous release.
US non defense capital goods orders excluding aircraft released by US census bureau dropped to -0.1% in February from 0.9% of its previous release.Meanwhile, crude oil futures trading its fresh high level for the year and moving toward $70 a barrel level on more sanctions on Iran and Venezuelan disruptions could deepen an OPEC-led supply cut. Brent futures for June delivery traded 0.58% up at $69.77 a barrel on Wednesday.
Sensex closes 179 points lower on 'below normal' monsoon warning, Nifty at 11,673.