Rupee ended lower, Yen lower vs. Dollar
Friday,
11-Oct-2019
05:32 PM (IST)
The Indian rupee ended the session lower at 71.02/03 levels compared to its opening at 70.83/84 levels after touching the low of 71.09/10 levels due to a sharp uptick in crude oil prices, but hopes of a long-awaited Sino-U.S. trade deal put a lid on losses. Crude oil prices surged to $60.65 per barrel (Currently $59.77 per barrel), after Reuters reported an explosion on an Iranian oil tanker. Post the news, most state-run banks bought dollars likely on behalf of importers. Rupee touched the high of 70.80/81 levels early today as hopes of a trade deal between the U.S. and China boosted Asian currencies and equities. India government bonds fell for the first time in three weeks, as a rise in U.S. Treasury yields and an anticipated spike in retail inflation dampened investor sentiment, while fears of a fiscal slippage also continued to weigh. Some brisk buying in industry heavyweights helped benchmark indices settle with decent gains on Friday. Additionally, positive global cues, too, boosted investor sentiment. The S&P BSE Sensex added 247 points or 0.65 per cent to end at 38,127.08 levels. The headline index Nifty50 ended at 11,301.25 levels, up 67 points or 0.59 per cent. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 3.49%, 3.71% and 4.96% respectively.
The Australian dollar and Chinese Yuan, often seen as barometers of investor risk appetite, rose Friday on hopes of progress in U.S.-China trade talks, while optimistic comments about the prospects of a possible Brexit divorce deal boosted sterling. Top U.S. and Chinese negotiators wrapped up their first day of trade talks on Thursday, with U.S. President Donald Trump welcoming what he called a “very, very good negotiation with China”. Business groups expressed optimism the two sides might be able to de-escalate their trade war, which has sapped economic growth around the globe. A Chinese newspaper said on Friday that a “partial” trade deal would benefit China and the United States, reflecting Beijing’s aim of cooling the row before more U.S. tariffs kick in. The Australian dollar was up at 0.6805 per U.S. dollar. The Yuan was also higher at 7.0938 against the greenback after hitting a three-week high in the Asian trading session of 7.0890. The safe-haven yen on the other hand slipped to 108.37 per dollar as investors’ risk appetite improved. The Swedish crown, which has been beaten up by the prospects of dismal global economic growth as result of trade tensions, got pushed up to a four-day high of 10.8065 against the euro , though its long-term weak trend remains unbroken for now. The euro edged up to $1.1063 against the dollar, which usually appreciates as a safe-haven currency when trade relationships worsen. Sterling surged to the high of $1.2655 on the back of “constructive” talks in Brussels between British and European Union Brexit negotiators.
|