Rupee ended higher, Pound falls vs. Dollar

Friday,   21-Jun-2019   05:32 PM (IST)

The Indian rupee ended the session higher at 69.55/56 levels compared to its opening at 69.75/76 levels after touching the high of 69.5225/5325 levels on dollar sales by private banks, likely on behalf of corporates. Rupee touched the low of 69.76/77 levels today as crude oil prices jumped amid increased geo-political tensions between the U.S. and Iran. Indian shares settled lower today, marking their third weekly decline, as uncertainty over the U.S.-China trade negotiations and rising oil prices outpaced investor euphoria around the Federal Reserve’s rate-cut signals. The broader NSE index closed down 0.91% at 11,724.10, while the benchmark BSE index ended 1.03% lower at 39,194.49. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 4.82%, 4.57% and 4.53% respectively. India's foreign exchange reserves fell to $422.20 billion as of June 14, compared with $423.55 billion a week earlier, the Reserve Bank of India said.

EUR/USD has been rising and tops 1.1300 after both French and German purchasing managers' indices have come out above expectations. Intensifying US-Iranian tensions are eyed as well. GBP/USD has been falling toward 1.2640 after UK Public Sector Net Borrowing has disappointed with 4.5 billion pounds. Investors are concerned about Brexit as Boris Johnson nears 10 Downing Street. Sterling slipped as Brexiteer Boris Johnson moved closer to becoming British prime minister, worrying investors that his government would make a no-deal Brexit more likely. Despite Friday’s falls, sterling remained on course for a positive week against the dollar after the Bank of England stuck to its message that interest rates would need to rise, contrasting with other policymakers that may ease policy. After a busy week for monetary policy, sterling traders will turn their attention back to British politics and the Conservative Party leadership contest. Johnson faces foreign minister Jeremy Hunt in a contest to succeed Theresa May as party leader and prime minister, with Johnson the odds-on favourite to secure a majority of votes from Conservative Party members. The new leader will be chosen by a ballot of party members with the result due next month. Whoever triumphs, the new prime minister will try to wring a tweaked Brexit withdrawal deal more palatable to British politicians from a sceptical Brussels that has said there will be no further negotiation over the agreement.