Rupee vs dollar: Persistent foreign fund inflows and hopes about US-China trade logjam breakthrough boosted forex market sentiments, analysts said.
Currencies And Forex | Edited by Anshul (with inputs from PTI) | Updated: November 26, 2019 19:25 IST
On Monday, the rupee had closed lower at 71.74 against the dollar.
The rupee on Tuesday rose by 24 paise to settle at an over two-week high of 71.50 against the dollar. Persistent foreign fund inflows and hopes about US-China trade logjam breakthrough boosted forex market sentiments, analysts said. After opening higher, the rupee traded in the range of 71.49-71.68, before settling at 71.50 against dollar. On Monday, the rupee had closed lower at 71.74 against the dollar.
Here are 10 things to know about rupee’s movement today:
- According to analysts, the rupee strengthened by weakening of dollar against the key rival currencies on Tuesday
- The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.01 per cent to 98.31.
- Globally, market sentiment improved after China’s Commerce Ministry said the lead envoys in trade talks between Beijing and the US spoke on the phone and agreed to continue to work toward a preliminary agreement for resolving their tariff war.
- Analysts said that starting from September, Foreign Institutional Investors (FIIs) have been net investors in domestic equities for three consecutive months. Cumulatively, they have pumped in more than Rs 36,000 crore in the last three months.
- On Monday, foreign investors bought equities worth Rs 960.90 crore, provisional data available with stocks exchanges showed. “
- “Broadly market is looking for a phase-one trade deal before the end of 2019. This optimism led to depreciation in rupee-dollar,” said Rahul Gupta, Head of Research-Currency, Emkay Global Financial Services
- “Government’s news of proposing new industrial policy further weighed on spot,” he said.
- “We expect the rupee to trade in a range of 71.20-72.20 levels for the next few session,” said Amit Pabari, Managing Director, CR Forex Advisors.
- On the domestic stock markets front, the S&P BSE Sensex and NSE Nifty 50 indexes ended lower after hitting record highs earlier in the session. The Sensex ended 68 points or 0.17 per cent lower at 40,821 and the Nifty 50 index fell 36 points or 0.3 per cent to close at 12,038.
- Global benchmark Brent crude futures, however, rose 0.05 per cent to $63.68 per barrel.
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