Rupee ended higher, Euro falls vs. Dollar

Thursday,   18-Apr-2019   05:32 PM (IST)

The Indian rupee ended the session higher at 69.3550/3650 levels compared to its opening at 69.46/47 levels after touching the high of 69.33/34 levels as private banks sold the greenback, leading to bunched-up inflows in a holiday-truncated week. Rupee traded in the range of 69.33-69.61 levels today. Indian government bonds ended little changed in a holiday-truncated week, as investors deferred purchases before the release of the minutes of the latest policy meeting, which is expected to provide cues on rate trajectory. The Indian stock market gave up recent record highs to close marginally lower, pressured by financial stocks as sentiment took a hit a day after debt-laden Jet Airways suspended all operations after running out of funds. The benchmark BSE Sensex closed down 0.34 percent at 39,140.28, while the broader NSE Nifty ended 0.29 percent lower at 11,752.8. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 4.97%, 4.50% and 4.23% respectively. India’s money markets will be shut again tomorrow on account of Good Friday.

The euro fell to a one-week low on Thursday after weak manufacturing surveys in Europe raised concerns about an economy struggling to gain traction before the long Easter weekend. Activity in Germany's manufacturing sector shrank for a fourth straight month in April, while a similar survey from France also painted a bleak picture. The single currency was up as much as 0.1 percent before the data but fell 0.4 percent to its lowest level since April 10 to $1.1244 after the data releases. A week ago, European Central Bank President Mario Draghi raised the prospect of more support for the struggling euro zone economy if its slowdown persist. But the prospects of more stimulus has failed to lift the general gloom over the euro's outlook. The euro was still more than 2 percent below a 2019 high of $1.157. Investors have cut their holdings of the currency, with net short bets at their highest in more than two years, according to latest positioning data. The euro's decline comes amid a general drop in currency market volatility. A JP Morgan volatility index was near 2008 lows. Commodity-linked currencies sagged after a surge in crude oil prices ran out of steam.