On Wednesday , USDINR opened 8 pips weaker @ 69.05/06 verses Tuesday closed at 68.96/97 levels.
USDINR getting support thru central banks intervention as well as now tracking oil price rally.
Emerging market Forex - Philippine peso , Singapore Dollar weaken, Taiwan dollar steady.
Thursday will Indian market on "HOLI" Holiday.
Since India is a net importer, demand for dollar is always going to be higher than supply and at times when external environment is not conducive for inflows, risk of dollar shortage cannot be avoided.
INTRADAY RANGE - 68.66 ( 68.95 - 69.34 ) 69.65
On Tuesday, Rupee saw a sharp pull back from high of 68.35, first by RBI aggressive intervention and then market getting short squeezed.
But what made the move in INR so ferocious was news from govt sources around 2:10 pm that they favour FX swap window to reduce RBI reliance on OMO to balance systemic liquidity. This kind of created a fear among market participants that swap is going to be a regular feature in RBI tool-kit and it may create a dollar shortage in the system with forwards also cooling off.
The dollar rose against most of its peers on Wednesday as reports of renewed tension in U.S.-China trade negotiations supported safe-haven bids, although the Federal Reserve's policy meeting later due in the day limited the greenback's gains.
Against a basket of key rival currencies, the dollar was almost 0.1 percent higher at 96.454 as it managed to find its footing after hitting its lowest level since March 1 at 96.291 in overnight trading.
The index is still down 1.3 percent from a three-month high of 97.71 hit on March 7, on views the Fed will strike a dovish tone during its latest policy meeting.
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