RUPEE opened 35 pips firm @ 70.10/11 then suddenly within minutes hit 69.85/86 levels against greenback. Yesterday USDINR rally 1.22% ahead of FOMC as well as RBI increase liquidity thru Open Market Operation. Oil price also very vital component in strong correction in USDINR.
INTRADAY RANGE - 69.80 (70.15 - 70.45)
The Indian rupee Tuesday rallied by a whopping 112 paise, its best single-day gains in over five years, to settle at 70.44 against the US dollar as softening crude oil prices eased concerns over India's current account deficit expansion.
Forex dealers said a drop in bond yields easing liquidity concerns in the market and bullish trend in equities trading also supported the rupee in maintaining its upward movement.
The dollar languished close to one-week lows on Wednesday as investors wagered the Federal Reserve would slow the pace of US monetary tightening after its keenly-watched policy meeting later in the day.
The safe-haven yen and the Swiss franc held a firm tone in early Asian trade as an overnight plunge in oil prices provided yet another reminder of the deteriorating global growth prospects, and underscored why traders expect the Fed will likely be done after an expected rate hike this week.
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