Rupee ended higher, Dollar steady vs. major currencies

Tuesday,   24-Apr-2018   05:36 PM (IST)

The Indian rupee ended the session higher at 66.3750/3850 levels compared to its opening at 66.42/43 levels after touching the high of 66.2875/2975 levels as banks stepped up greenback sales for exporter and corporate clients. However, higher crude oil prices and greenback strength continue to cap gains in the local currency. Rupee traded in the range of 66.2875-66.4625 levels today. Other Asian currencies ended mixed. Indian shares marked their highest close since Feb. 5 today as gains in financial and energy stocks helped lift the mood, but aluminum producers such as Hindalco Industries Ltd capped the gains on the NSE. The benchmark BSE Sensex closed up 0.48 percent at 34,616.64. The broader Nifty ended 0.28 percent higher at 10,614.35. Indian government bonds rose for the first time in seven sessions, as investors bought notes to benefit from recent price declines, while a turnaround in the rupee also aided sentiment. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 4.34%, 3.98% and 3.94% respectively.

The dollar was holding steady near seven week highs against a basket of the other major currencies on Tuesday, boosted by rising Treasury yields. The yield on 10-year U.S. Treasury notes hit its highest in more than four years at 2.998% on Monday, as strengthening inflation prospects added to expectations for a faster rate of monetary tightening from the Federal Reserve. The yield later backed off that level and was last at 2.960%. The dollar hit ten-week highs against the safe haven yen, with USD/JPY up to 108.92 after surging 0.83% on Monday. The Japanese currency, which is often sought in times of market turmoil and political uncertainty and tends to decline as investor confidence returns, has weakened in recent sessions as worries over geopolitical risks and trade tensions waned. Last week the pound had surged to its highest level since the June 2016 Brexit vote. Sterling was also pressured lowed by renewed uncertainty over Brexit negotiations ahead of a report on first quarter growth later in the week.