After it has reached a 5-week high against the US dollar, the Indian Rupee gives back some of its gains on early trading. It settled 30 paise lower at 70.62 to the US dollar on Monday close. The greenback is trying to recover some of the lost ground. This happens after the US economy showed better than expected job number during October. The USD/INR exchange rate was seen quoted around the 70.48 level before the London open.
The dollar index, which gauges the greenback’s strength against a basket of major currencies closed the day before at 97.12. The broad-based dollar strength coupled with rising crude oil prices has put a cap on the Indian Rupee gains.
The benchmark equity index NIFTY 50 settled at 11941 and was seen quoted at 11895 during the Asia trading hours. The Indian 10-year government bond yield has registered a +2.02% gain being quoted around 6.602 percent.
According to the recent data, foreign investors have injected Rs 16,464 crore into the Indian capital markets in October. This is the second consecutive month overseas investors are net buyers. Foreign Portfolio Investors (FPI) have also bought Rs 12,475.7 crore in the Indian equity market.
Trade tensions between the United States and China are fading away. There are growing hopes that phase one of the trade deal will be signed soon. The US Commerce Secretary Wilbur Ross said that “we’re very far along with phase one,” at the Indo-Pacific Business Forum on Monday.
The sentiment only moderately improved for the Rupee despite some of the uncertainties related to the trade war being removed. The US stock market posted a new all-time high on the back of the trade agreement optimism. The S&P 500 gaped higher on Monday and reached a new all-time high at 3085 but settled lower at 3078. Year to date the S&P 500 has gained almost 23%, while Dow Jones gained almost 18% for the year.
