Rupee ended lower, Euro falls vs. Dollar

Friday,   14-Dec-2018   05:31 PM (IST)

The Indian rupee ended the session lower at 71.8950/9050 levels compared to its opening at 71.7850/7950 levels after touching the low of 72.05/06 levels close to the end of the trading session tracking losses in other regional currencies as weak Chinese economic data brought worries over economic growth slowdown to center stage. However, greenback sales by exporters capped losses in the local unit. Rupee traded in the range of 71.6950-72.05 levels today. Indian shares eked out a slightly positive finish today, with the NSE closing above 10,800 points for the first time in 10 days, buoyed by gains in energy, IT and telecom sectors. The broader NSE Nifty closed 0.13 percent firmer at 10,805.45, while the benchmark BSE Sensex ended 0.09 percent higher at 35,962.93. Indian government bonds rose for a fourth week, as retail inflation slowing to a near one-and-a-half year low increased bets of monetary policy easing in the coming months. India's wholesale price index inflation (WPI) dropped to 4.64 percent in November, after rising to a four-month high of 5.28 percent a month earlier. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 4.03%, 3.90% and 4.01% respectively.

The euro fell on Friday as the euro zone economy showed more signs it’s beginning to sputter, while the dollar made some headway as investors turned nervous about a slowdown in China. The euro was hurt on Thursday when the European Central Bank cut forecasts for economic growth and inflation. The reduction was modest, but it underscored concerns about a euro zone slowdown and the central bank’s caution as it ends its bond-buying scheme and tries to wean the region off stimulus. On Friday, German data showed private-sector expansion slowed to a four-year low in December, adding to the euro’s woes. French business activity unexpectedly contracted. The euro fell to $1.1281. The dollar rose across the board. The dollar found broad support as the euro and pound came under pressure, the latter because of renewed concerns about Britain’s withdrawal from the European Union.