Rupee ended tad higher, Dollar up vs. major currencies

Wednesday,   30-Sep-2020   02:51 PM (IST)

The Indian rupee ended the session tad higher at 73.7650/7750 levels compared to its opening at 73.8125/8225 levels after touching the high of 73.6950/7050 levels on slight dollar selling in the market. Rupee traded in the range of 73.6950-73.87 levels today. Rupee logged its best quarter against the U.S. currency in nearly two years, aided by portfolio and investment flows, while the central bank eased up on its dollar bids. Equity markets were trading over half per cent higher in Wednesday's volatile session, lifted mainly by FMCG and pharma stocks. At 2:12 pm, the S&P BSE Sensex was trading at 38,181, up 208 point, while the broader Nifty50 was at 11,288 up 65 point. Indian government bond yields posted their first rise in eight quarters, as uncertainty regarding additional borrowing, interest rates as well as the central bank’s bond purchases put a dampener on investor sentiment. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 3.38%, 3.78% and 3.94% respectively.

The dollar ticked up in Europe on Wednesday, recovering some losses after a two-day fall, as traders assessed a debate between President Donald Trump and his challenger, Joe Biden. The dollar index against a basket of currencies crept above the 94 mark, after two days of losses that followed the dollar reaching a two-month high last week. U.S. stocks futures and European stocks traded lower hours after the debate, marked by Trump’s repeated interruptions in a chaotic encounter in which the candidates battled over the president’s leadership on the coronavirus pandemic, the economy and taxes. Traders also focussed on a U.S. fiscal stimulus packaged to cushion the coronavirus blow. The euro lost 0.18% against the dollar at $1.1722. Economic indicators have recently painted an uneven picture of the economic recovery in Europe, but the morning data were generally positive. German retail sales rose more than expected in August, raising hopes that household spending will power a recovery in the third quarter from the coronavirus shock. The dollar rose 0.28% against the Swiss franc at 0.9218 franc, after falling as low as 0.9191 franc overnight. Switzerland’s KOF leading indicator hit a 10-year high in September, rising for the fourth time in a row as the economy extended its recovery from the coronavirus. China’s Yuan held steady even after twin surveys showed strong factory activity growth, which backed recent signs of a rebound in broad sectors of the world’s second-biggest economy.