Sunday, November 10, 2019

Today's Currency News : 11.11.2019

Today's Currency News : 11.11.2019

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Rupee slips to one-month low on US-China trade concerns

The Indian rupee on Monday hit a near one-month low against the US dollar tracking its Asian peers which fell on fresh doubts over US-China trade deal. At 9.10am, the home currency was trading at 71.36 a dollar, down 0.15% from Friday's close of 71.29. The Indian unit opened at 71.34 a dollar and touched a low of 71.38 -- a level last seen on 17 October. Asian currencies fell after US President Donald Trump said on Friday that the US government has not agreed to roll back all tariffs with China. The sentiment was also dented after Moody's lowered India’s outlook to negative from stable, while retaining the issuer rating at Baa2. The yield on the 10-year Indian government bond was at 6.558% compared with its previous close of 6.557%.In the year so far, the rupee has weakened 1.9%, while foreign investors have bought nearly $10.85 billion in Indian equities and $5.34 billion in debt.
 In pre-opening trade, the benchmark Sensex Index rose 0.21% or 84.92 points to 40408.53 points. Year to date, it has gained 11.8%.  Asian currencies were trading lower. South Korean won was down 0.39%, Philippines peso 0.23%, China Offshore 0.22%, Indonesian rupiah 0.19%, Taiwan dollar 0.17%, Singapore dollar 0.16%, China renminbi 0.15%, and Malaysian ringgit 0.13%. However, Japanese yen was up 0.22%, and Thai Baht 0.09%.  The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.34, down 0.01% from its previous close of 98.353.

Rupee opens lower at 71.36 per dollar

The Indian rupee opened lower by 8 paise at 71.36 per dollar on Monday versus Friday's close 71.28.
"Moody's decision to change its outlook to negative from stable is a matter of concern. But it is unlikely to have major impact on the rupee in the near term," said Rushabh Maru, Research Analyst - Currency and Commodity, Anand Rathi Shares and Stock Brokers.  "There is lot of optimism regarding the trade deal between the US and China. Hence this may provide relief to the rupee."
"Domestic and global equities remain strong. This may also support the rupee. Focus will now shift to India's macroeconomic data to be released in the next week. In the near term the rupee may trade in the range of 70.80 and 71.60," he added.Oil prices fell on Monday on renewed caution over the prospects of a trade deal between the United States and China, with investors shrugging off comments over the weekend by US President Donald Trump that talks were going well.  The dollar held near multi-week highs amid optimism that the United States and China would roll back tariffs that have hurt global growth. The dollar-rupee November contract on the NSE was at 71.35 in the previous session. Open interest declined 2.97% in the previous session, said ICICIdirect. We expect the USD-INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions, it added.