India’s Rupee remains unchanged against its American counterpart on Christmas day amid subdued trade volume. On the foreign exchange market, at the end of Tuesday (New York-based close) the value of Rupee depreciates by 5 paise and settled lower at 71.24 against the US dollar.
With all major financial centers worldwide being closed on Christmas day, currency traders should expect a more predictable exchange rate, as the thin liquidity may lead to fewer swings in the foreign exchange rates.
The dollar index has seen light trading activity and remains almost unchanged from last week closing rate. On Tuesday, the dollar index settled at 97.68 versus 97.67 previous closing rates.
Elsewhere, foreign institutional investors (FIIS) were net sellers in the local equity market and sold stocks worth RS -114.38 crore; according to the National Stock Exchange of India data published at the end of Monday. At the same time Domestic institutional investors sold Rs 345.22 crore.
Elsewhere, in the US, the economy is expected to slow down from 2.2% in 2019 to 2.0% in 2020, and even lower to 1.8% in 2021, according to the forecast released by the Federal Open Market Committee FOMC early this month. The downbeat FOMC forecasts were driven by the possible side effects of the US — China trade war.
At the same time the third-largest economy in Asia is expected to regain its strength and see its Growth Domestic Product picking up to 6.4% in 2020.
The domestic benchmark equity index NIFTY 50 was seen trading lower on Tuesday and settled at 12,214 registering a -0.39% loss. On Christmas day the National Stock Exchange of India and the bond market will remain close
Year-to-date the Indian stock market is on track to post double digit returns after it has gained 12.45%.
