Indian Rupee: Slides Ahead Of Fed Meet

The Indian rupee dipped by 12 paise in opening trades on Wednesday, 11 April 2018 ahead of the release of US Fed meeting minutes scheduled later in the day. Weakness in the US dollar against select currencies overseas and a higher opening in domestic equities, however, capped the losses. Meanwhile, foreign portfolio investors (FPIs) sold equities worth Rs 684.99 crore yesterday, provisional data showed.

The domestic currency commenced at Rs 64.98 against the dollar and plunged to a low of 65.1650 so far during the day. In the spot currency market, the Indian unit was last seen trading at 65.13. Yesterday, the rupee had ended higher by 3 paise at 64.99 against the American currency amid easing US-China trade war fears.

Domestic benchmark indices were trading with small gains in early trade. At 9:17 IST, the barometer index, the S&P BSE Sensex, was up 18.12 points or 0.05% at 33,898.37. The Nifty 50 index was up 12.45 points or 0.12% at 10,414.70.

Overseas, most Asian shares rose as investors sentiment improved after Chinas President Xi Jinping helped ease fears over a US-China trade row. Chinas factory inflation slowed for a fifth month while the consumer price index retreated from a four-year high. The producer price index rose 3.1% in March from a year earlier, compared with 3.7% in February. The consumer price index climbed 2.1%, the statistics bureau said Wednesday, versus 2.9% in February. US stocks surged on Tuesday, 10 April 2018, thanks to a less-aggressive stance on trade taken by Chinese President Xi Jinping. Xis conciliatory comments on tariffs sent prices of risky assets such as global equities and commodities higher.

Meanwhile, the dollar remained subdued in Asia on Wednesday morning despite the conciliatory comments from the leaders of the U.S. and China that eased the trade tensions between the two countries. The inflation data from Japan and China were also in focus. The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 89.31, down 0.01%. The dollar hit this weeks low at 89.27 overnight.