Rupee ended higher, Pound rose vs. Dollar

Wednesday,   12-Jun-2019   05:24 PM (IST)

The Indian rupee ended the day higher at 69.34/35 levels compared to its opening at 69.45/46 levels after touching the high of 69.2850/2950 levels as crude oil prices dropped and as likely foreign fund inflows buoyed the local unit. Asian currencies ended mixed. Indian shares snapped three sessions of gains to settle lower in line with global markets as Washington took a tough line on trade talks with Beijing, while India bulls Housing Finance Ltd drove the declines in the NSE Nifty. The broader NSE Nifty closed 0.50% lower at 11,906.20, while the benchmark BSE Sensex settled down 0.48% at 39,756.81. Indian government bonds rose for a second consecutive session today, as a fall in crude oil prices improved the appetite for domestic assets, while traders expect May inflation to stay below the central bank's target. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 4.02%, 3.99% and 4.05% respectively. Investors will keep a close eye on India’s retail inflation data for May, due for release after market hours today.

The pound rose towards a three-week high on Wednesday after Britain’s main opposition party said it would try to introduce parliamentary legislation to prevent a no-deal Brexit. Investors are concerned the next prime minister could put Britain on course for a no-deal divorce with the European Union and send the pound plummeting. Frontrunner Boris Johnson, a eurosceptic, has said he would be willing to take the nation out at the end of October, even if it meant leaving without a deal. But Labour on Wednesday will debate a motion to seize parliamentary time on June 25 to give lawmakers the chance to introduce legislation preventing a no-deal Brexit. A majority of lawmakers oppose leaving without a deal and other leadership contenders have warned parliament will block any attempt to do so. The pound was up 0.2% at $1.2740, close to a three-week high of $1.2763 hit on Friday. It was flat against the euro at 89 pence. Sterling, which has been confined recently to a range of $1.26-$1.28, found some relief on Tuesday after British wages in the three months to April rose faster than expected. Traders have largely ignored economic data releases in Britain recently, believing the Bank of England is unlikely to change interest rates until Britain decides how, when and even if it will leave the European Union. The United Kingdom is scheduled to exit the bloc on Oct. 31.