Indian Rupee was boosted against the greenback amid strong gains in the equity market.
On the interbank market, the USD/INR exchange rate settled slightly down on Monday close settling 10 paise lower at 71.52. During the early Asia trading hours and after the London open, Rupee was seen quote further down at around 71.41 against the US dollar.
During the first trading day of the week, investor’s risk appetite is on the rise amid trade hopes. The Indian Rupee has closed up on a firm note following the rise in the Asia equity market and domestic market also followed suit. The Rupee exchange rate has been fairly stable and choppy over the last week as currency traders are still assessing all macro factors that can disrupt the market volatility.
The trade war between the US and China saw some relaxation amid concessions from both sides. China pledges to raise sanctions on intellectual property violations in response to US demands. This was a big issue at the center of the trade standoff between the world’s two most powerful economies in the world. From the other side the US President Donald Trump also said that a trade deal is very close and it can be reached by year-end.
The domestic benchmark equity index NIFTY 50 inched higher closing near the all-time high established this summer and settled at 12073, registering a 1.34% gain. During early Asia trading hours, NIFTY 50 broke to a new all-time high after it touched a high of 12132. The Indian 10-year government bond yield closed at 6.49 versus 6.47 previous closing prices.
The dollar index, which gauges the greenback’s strength against a basket of major currencies closed on Monday slightly higher settling at 98.32 registering a 0.06% gain.
USD/INR Technical Pattern
On the technical front, the USD/INR exchange rate managed to break out of a trading range established over the past few days. However, as long as the pair is trading above the key 200-day moving average, the bullish momentum should prevail.