Dollar is closed at 63.6900 against its opening at 63.7200. Dollar is likely capped on buying by nationalised banks likely for the Reserve Bank of India to limit the appreciation in the rupee. The greenback dropped to its three-year low level after Bank of Japan left interest rates unchanged amid BOJ Governor Haruhiko Kuroda continued his efforts to cool speculation that the bank will raise rates this year. However, lack of US economic data kept investors on sidelines.
The Bank of Japan maintained its aggressive monetary easing, as widely expected, and left its assessment of inflation and growth unchanged. Governor Haruhiko Kuroda and his board members decided by an 8-1 majority vote to hold its target of raising the amount of outstanding JGB holdings at an annual pace of about Y80 trillion, the bank said in a statement on Tuesday. Shares in the Asian market traded lower Wednesday despite upbeat overnight markets as investors stateside focused on earnings releases.
BSE Sensex closed higher by 21.66 points while the Nifty 50 edged up 2.30 points to close at 11,086.
INTERNATIONAL
Asian share markets took a time out as investors were left breathless at the breakneck pace of recent gains, while a fresh burst of speculative selling took the U.S. dollar to three-year lows.
Japan’s exports to China and Asia hit record levels as shipments rose for a 13th straight month in December and manufacturing growth hit a four-year high in January, pointing to an economy that powered through the fourth quarter and into 2018.
Gold prices gains in Asia with a weaker dollar aiding buying for the greenback-denominated commodity with a backdrop of rising concerns about growing US protectionism in global trade ahead of a speech at the end of the week by president Trump in Davos.
Oil prices fell on Wednesday, weighed down by data that showed an increase in oil and gasoline inventories.