Rupee ended lower, Euro lower vs. Dollar

Wednesday,   24-Apr-2019   05:25 PM (IST)

The Indian rupee ended the session lower at 69.87/88 levels compared to its opening at 69.8175/8275 levels after touching the low of 69.9750/9850 levels as banks stepped up greenback purchases for corporate clients, while the dollar index strengthened on the back of upbeat U.S. data. But some ease in the oil prices after the recent rally and strong inflows in domestic equities cushioned rupee for the day. Rupee traded in the range of 69.75-69.9750 levels today. Other Asian currencies also ended lower against the greenback. The Reserve Bank of India will inject rupee liquidity worth 348.74 billion rupees in the first leg of settlement tomorrow, after it conducted its second USD/INR Buy/Sell Swap auction yesterday. Indian government bonds closed higher, with the benchmark paper posting its best day in over three weeks, after the central bank announced open market note purchases for next month. Indian shares posted sharp gains in the last hour of trade, with index heavyweights shouldering most of the gains. Snapping three sessions of losses, the broader Nifty closed 1.3 percent higher at 11,726.15, while the benchmark Sensex ended up 1.27 percent at 39,054.68. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 5.25%, 4.60% and 4.37% respectively.

The euro fell towards a one-month low on Wednesday as the contrast between solid economic data in the United States and souring confidence measures in the euro zone kept the dollar supported near 22-month highs. Australia’s dollar was the biggest mover among the major currencies, dropping one percent after weaker-than-expected inflation numbers heightened the prospect of an interest rate cut. Deteriorating German business morale, after a business climate index for April came in below forecasts, was the latest signal that economic performance in the euro zone is relatively weak. The greenback, by contrast, was propelled higher by strong U.S. housing data on Tuesday - the latest signal the American economy is outperforming rivals, encouraging investors to snap up the dollar in recent weeks. The dollar index stood at 97.622 after rising to 97.777 overnight, its highest since June 2017. The euro weakened to $1.1194, but held above its early April low of $1.1183. The weakness in the euro allowed the Swiss franc to strengthen from six-month lows marked on Tuesday. The franc has been hit hard as investors dumped safe-haven currencies during this year’s rally in risk assets. The Aussie fell to a 1-1/2 month low of $0.7024. The Canadian dollar shed 0.3 percent to C$1.3462 and a six-week low despite the recent rise in oil prices as investors bet the Bank of Canada would stick to its dovish policy stance when it meets later on Wednesday. The yen was unchanged at 111.86 against the dollar.