Rupee ended lower, Pound rose vs. Dollar

Wednesday,   23-Jan-2019   05:32 PM (IST)

The Indian rupee ended the session lower at 71.3350/3450 levels compared to its opening at 71.1725/1825 levels after touching the low of 71.37/38 levels due to losses in local and regional shares on concerns over global growth and trade deal between the U.S. and China. Rupee rose to 71.15/16 levels early today tracking gains in most Asian currencies amid drop in crude oil prices on subdued risk appetite. Rupee traded in the range of 71.15-71.37 levels today. Indian shares closed lower today dragged by a sharp fall in ITC Ltd after the cigarette-maker reported quarterly results, while IT and financial stocks also contributed to the losses. The broader NSE index ended down 0.84 percent at 10,831.5, while the benchmark BSE index ended 0.92 percent weaker at 36,108.47. Indian government bonds fell for the first time in three sessions, dragged down by concerns about the impact of a likely farm package on the country’s fiscal consolidation. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 4.10%, 4.13% and 4.05% respectively.

Sterling rose above $1.3 on Wednesday after Britain’s opposition Labour Party said it was “highly likely” to back an attempt by lawmakers to prevent a disorderly no-deal Brexit. With little time left until the March 29 Brexit deadline, there is no agreement in London on how or even whether it should exit the world’s biggest trading bloc. But sterling is gaining as investors buy the currency, betting that a no-deal Brexit can be avoided if parliament exerts greater control over the process. Sterling strengthened 0.3 percent against the dollar to $1.3013, a 2-month high. It also rose for a third consecutive day versus the euro to 87.33 pence. The pound was boosted on Tuesday by strong employment data which suggested Britain’s labour market remained robust despite an economic slowdown ahead of Brexit. If lawmakers back an amendment by lawmaker Yvette Cooper in a vote scheduled next Tuesday that could force Theresa May to ask the EU to delay Britain’s exit from the bloc on March 29. That would need to be approved by Brussels which could be hesitant to protract the period of uncertainty but has said it is open to a delay in certain circumstances.