USDINR opened at 69.88/89 with 26 pips stronger against Monday at 70.14/15. The Domestic unit getting stronger in early trade on favorable oil move as well as Dollar index have strong resistance near 96.50 levels.
INTRADAY RANGE - 69.42 (69.83 - 70.25) 70.66
RBI intervened to smoother the fall in the rupee by selling more than $30 billion since April. The reserves fell sharply to $392 billion by October 26, 2018. The forex intervention, as usual, impacted rupee liquidity in the system by nearly Rs 2 lakh crore. Through a series of open market operations (OMO- purchases), RBI not only purchased the government securities from the system, but also announced the intended future purchases.
The dollar was broadly lower on Wednesday, pressured by a cocktail of negative factors including heightened concerns over the partial U.S. government shutdown and tension between the White House and the Federal Reserve.
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