Dollar closed at 63.5900 against its opening at 63.6800. Dollar snapped two-day rise Wednesday on selling by foreign banks tracking the weakness in the greenback on reports Chinese official has suggested to slow-down or halt buying of US Treasuries as dollar opened little changed as investors refrain from building significant positions on lack of fresh triggers. There are no major triggers to drive the forex market, US inflation print is eyed upon to make the next move. Indian shares open flat tracking Asian shares amid likely optimism ahead of quarterly earnings reports and hopes for easing tensions with North Korea.
On the global front Major Asian markets fell morning despite a solid lead from Wall Street overnight, but Shanghai stocks bucked the trend. North Korea and South Korea on Tuesday agreed on negotiations to resolve problems and military talks aimed at averting accidental conflict, after their first official dialogue in more than two years, as Pyongyang's nuclear weapons program fuels tension.
On the energy front, crude oil prices edged higher on Tuesday, with WTI touching its highest since December 2014, supported by OPEC-led production cuts and expectations that US crude inventories have dropped for an eighth week in a row. Also, investors await the release of US inflation prints due Friday.
BSE Sensex closed lower by 10.12 points at 34,433.07, while the Nifty 50 fell 4.80 points to close at 10,632.20.
INTERNATIONAL
Oil prices hit their highest levels since 2014 due to ongoing production cuts led by OPEC as well as healthy demand, although analysts cautioned that markets may be overheating.
China’s producer prices rose at their slowest pace in 13 months in December, as the government’s war against winter smog dented factory demand for raw materials in a sign the world’s second largest economy has started to slow.
Gold prices slipped as a surge in U.S. treasury yields and an ongoing rally in equities dented the precious metal’s safe-haven appeal.
United Nations Security Council meeting to discuss recent protests in Iran turned into criticism of the United States for requesting to meet on what some member states said was an internal issue for Tehran.
South Korean President Moon Jae-in credited U.S. President Donald Trump on Wednesday for helping to spark the first inter-Korean talks in more than two years, and warned that Pyongyang would face stronger sanctions if provocations continued.