India’s domestic currency, Rupee slipped to its lowest level in two weeks thanks to the thinned liquidity around the Christmas holiday period. On the foreign exchange market, the value of Rupee depreciates by 38 paise at the end of the previous week, and settled lower at 71.43 against the US dollar.
During the early Asia trading hours, the USD/INR exchange rate was seen quoted within a range of 71.42 — 71.30. In the year-to-date, Indian Rupee is on track to appreciate by 2.28%, despite negative internal factors such as lackluster economic growth and external factors such as trade tensions and the global economic slowdown.
The dollar index traded finished the week lower and settled at 97.01 and attempts to retest the 5-months lows established in the aftermath of the UK general election.
Elsewhere, foreign institutional investors (FIIS) were net buyers of shares in the local equity market worth Rs 81.37 crore; according to the National Stock Exchange of India data published at the end of Friday’s trading session. At the same time Domestic institutional investors were net buyers, investing Rs 125.77 crore.
Year-to-date, foreign investors have pumped in $14.35 billion in equities and $3.35 billion in India’s bonds.
Looking forward over the economic calendar, currency traders shouldn’t expect the Forex volume to pick up as New Year Day gets underway. However, by the end of the week, China’s manufacturing activity will reveal if the signs of stabilization in the manufacturing sector are only transitory or not.
The domestic benchmark equity index NIFTY 50 traded almost unchanged and settled at 12,245 by the end of Friday’s trading session. During early Asia trading hours NIFTY 50 was seen quoted around the 12,220 level. Year-to-date the Indian stock market has gained 12.46%, benefiting from net foreign investment inflow.
The Indian 10-year government bond yield was seen quoted at 6.52% in morning trade compared with its previous close of 6.51%.
