Rupee open with 22 pips gain @ 70.48/70.49 against Tuesday finished at 70.70/70.71 verses greenback. According to sources market is expecting good offshore flows lead by corporate . Rupee getting some help on dollar edged lower versus its peers on Wednesday, as rising hopes of a breakthrough in U.S.-China trade talks led investors to put money into the euro and Asian currencies.
INTRADAY RANGE - 70.20 ( 70.38 - 70.75 ) 70.92
On Tuesday Rupee opened par at 71.17 after settling at 71.17 against the US dollar on Monday. The rupee gained over 10 pips on Monday buoyed by RBI’s interest rate cut as well as lower oil price providing tailwinds. Moves in Euro and other currencies against the US dollar remain key triggers for the local currency. On daily chart, the pair has formed a red candle with lower lows and lower highs indicating weakness in the pair.
U.S. tariffs on $200 billion worth of imports from China are scheduled to rise to 25 percent from 10 percent if the two sides cannot reach a deal by the deadline, increasing pain and costs in sectors from consumer electronics to agriculture. The main focus for the markets are the high-level talks this week in China, where the world's two largest economies attempt to hammer out a trade deal. Financial markets have been rattled by the trade tensions over the past year, with business sentiment taking a hit globally as the fallout of the U.S.-China dispute disrupted factory activity and hurt global growth.
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