India’s Rupee inched lower against the greenback for two consecutive days. The USD to INR buying has been generated by a stronger US Dollar. At the end of the previous trading week, the value of Rupee depreciated by 9 paise settling down 0.13% at 70.99 against the US dollar. However, the USD/INR exchange rate was seen trading within a trading range of 70.55 and 71.05.
Risk sentiment has improved amid easing trade tensions, de-escalation of geopolitical tensions in the Middle East. The risk appetite will continue to remain fueled by the very low level of interest rates, which will bolster investor’s appetite for more risk.
The Indian rupee
In other news, the United Nations UN forecast India’s growth rate at 5.7% for the fiscal year 2019 – 2020 the World Economic Situation and Prospects report revealed. At the same time, according to the same UN report, India’s economy is expected to pick up to 6.6% next fiscal year. The economic boost is expected to be triggered by a combination of “both monetary and fiscal policy.”
The US dollar
The dollar index benefited from US economic optimism and settled up 0.30% at 97.64.
Elsewhere, foreign institutional investors (FIIS) were net buyers of shares in the local equity market worth Rs 264.26 crore; according to the National Stock Exchange of India data published at the end of Thursday’s trading session. On the other hand, Domestic Institutional Investors (DIIs) were net sellers of equities worth Rs -500.17 crore.
The domestic benchmark equity index NIFTY 50 extended its gains and surged to record highs settling up 0.78% at 12,352.35 on Friday. However, during early Asia trading hours on Monday, NIFTY 50 gaped to a new all-time high, but sold off and was seen quoted at 12,290.70.
The Indian 10-year government bond yield was seen quoted at 6.64% in morning trade compared with its previous close of 6.63%.
Currently, at the interbank market, one US dollar buys 71.03 Rupees, up 0.06% as of 8:00 AM UTC.