USDINR start Wednesday session with 26 pips weakness @ 71.36/37 against Tuesday closed @ 71.10/11 levels. USDINR positively correlated with Oil price, Overnight crude Oil price jump 2% on Venezuelan sanctions as well as Indian government will table the interim Budget Friday and rupee is likely to react negatively in the short term, if government gives the populist budget.
INTRADAY RANGE - 71.05 ( 71.15 - 71.53 ) 71.65
On Tuesday, The USDINR sentiment got revived towards the fag-end trade offseting early losses amid increased selling of the greenback by exporters. the rupee opened on a weak note at 71.14 then fell further to 71.22 against the US dollar. The local unit, however, erased the initial gains and settled for the day at Rs 71.11, up by just 1 pips over its previous close.
The pound nursed losses early on Wednesday on fresh concerns about the possibility of a "no-deal" Brexit, while the dollar held steady ahead of the Federal Reserve's policy decision. Sterling was little changed at $1.3078 but retreated 0.7 per cent overnight as lawmakers rejected a proposal to give parliament a path to prevent a potentially chaotic hard exit. Britain is due to leave the EU on March 29. Last week, the pound hit $1.3218, its highest since mid-October, on hopes that London might avoid a no-deal departure from the European Union.
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