The Indian Rupee has kick started the first trading day of 2020 on a positive note against the greenback. At the foreign exchange market, the value of Rupee appreciates by 10 paise on Wednesday, settling higher at 71.22 against the US dollar.
During the early Asia trading hours, the USD/INR exchange rate was seen quoted within a range of 71.19 — 71.33. India’s Rupee showed some strength last year, despite an economic slowdown and several rate cuts delivered by the Reserve Bank of India. However, the Rupee’s gains were limited and according to some analysts INR is projected to weaken by the end of 2020.
The dollar index, which gauges the greenback’s strength against a basket of major currencies, plunged to a 6-months low as year-end liquidation continued. The year-end sell off has trimmed US dollar’s gains to near 0.6% compared to 4.4% in 2018.
Elsewhere, foreign institutional investors (FIIS) were net sellers of shares in the local equity market worth Rs -58.87 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 208.47 crore.
In other news, the US President Donald Trump lifted up the market sentiment by suggesting that the world’s two most powerful economies in the world are ready to officially sign a trade deal on January 15.
“I will be signing our very large and comprehensive Phase One Trade Deal with China on January 15. The ceremony will take place at the White House. High level representatives of China will be present. At a later date I will be going to Beijing where talks will begin on Phase Two!” Donald Trump said in a tweet.
The domestic benchmark equity index NIFTY 50 traded slightly lower on the first trading day of the year and settled at 12,182. During early Asia trading hours NIFTY 50 was seen quoted higher around the 12,260 level.
The Indian 10-year government bond yield was seen quoted at 6.51% in morning trade compared with its previous close of 6.50%.
