Indian Rupee regains some of the lost ground against the US dollar amid improved risk sentiment. The USD/INR exchange rate settled 9 paise lower at 70.53 on Tuesday close, but it was seen quoted higher at 70.77 gaining momentum after the London opening session.
Wall Street analysts have assigning the recent Indian Rupee strength that brought the USD/INR exchange rate to a 5-week low to large inflows of money coming from foreign fund investment in the stock market. Only in the last 3 trading days, overseas investors have pumped more than $2 billion into the Indian stock and the debt market. However, this should have only transitory effects.
The benchmark equity index NIFTY 50 settled at 11917 and was seen quoted higher at 11959 during the Asia trading hours. The Indian 10-year government bond yield has registered a -0.43% loss being quoted around 6.436 percent.
 |
The dollar index, which gauges the greenback’s strength against a basket of major currencies closed the previous trading day higher at 97.12. The Indian Rupee was able to sustain its gains despite the broad-based dollar strength which was motivated by trade deal hopes.
China President Xi Jinping suggested that he is prepared to give some concessions on some of China’s core demands. The United States and China have ambitions to sign phase one deal of the trade agreement before the end of the year. The sentiment has continued to improve, but there is still a long road until a more comprehensive trade deal can be reached between the world’s two largest economies.
