Indian Rupee had a fourth consecutive day of gains benefiting from easing tensions in the Middle East. At the foreign exchange market, the value of Rupee appreciated by 22 paise settling up 0.31% at 70.68 against the US dollar. However, the USD/INR exchange rate was seen trading on Monday within a trading range of 70.61 and 70.92.
The domestic currency INR benefited from ramped market sentiment amid excitement over signing the trade agreement between the world’s two most powerful economies in the world. The phase-one agreement between Washington and Beijing is scheduled to be officially signed on Wednesday, January 15.
Additionally, the Trump administration on Monday dropped China’s currency manipulator label easing further the tensions.
China the second largest economy in the world has seen its exports and imports boosted by a big margin, the government data showed on Tuesday morning. China’s trade surplus with its US counterparts was down 8.5% to 295.8 billion in 2019 compared to the $323.3 billion surplus in 2018. As part of the phase-one trade deal, China committed to buy $200 billion of US goods over a two-year period.
The dollar index, which gauges the greenback’s strength against a basket of major currencies, settled up 0.03% at 97.38.
Elsewhere, foreign institutional investors (FIIS) were net buyers of shares in the local equity market worth Rs 68.24 crore; according to the National Stock Exchange of India data published at the end of Monday’s trading session. At the same time, Domestic institutional investors were net buyers of equities worth Rs 47.17 crore.
The domestic benchmark equity index NIFTY 50 reached a new all-time high, and settled up 0.59% at 12,329.55 on Monday. However, during early Asia trading hours, NIFTY 50 was seen gaping higher to a new all-time high at 12,349.75.
The Indian 10-year government bond yield was seen quoted at 6.68% in morning trade compared with its previous close of 6.60%.
Currently, one US dollar buys 70.85 rupees, down -0.09% as of 7:55 AM UTC.
