Rupee ended lower, Euro steady vs. Dollar

Monday,   11-Nov-2019   05:23 PM (IST)

The Indian rupee ended the day lower at 71.4550/4650 levels compared to its opening at 71.32/33 levels after touching the low of 71.5450/5550 levels tracking weak Asian currencies and dollar purchases from foreign banks. Rupee traded in the range of 71.31-71.5450 levels today. Most Asian currencies fell as risk sentiment was dented by renewed uncertainty over a preliminary trade deal between the United States and China. U.S. President Donald Trump over the weekend said he had not agreed to the removal of tariffs on Chinese goods. Trump added that talks were moving along well but a deal would be signed only it was right for the U.S. The Sensex ended 21.47 points, or 0.05 per cent, higher at 40,345 levels. During the day, the S&P BSE Sensex touched an intra-day high and low of 40,417.44 and 40,150.97, respectively. The Nifty50 managed to close above the psychological mark of 11,900, at 11,913, up 5 points or 0.04 per cent. Indian government bonds fell for the third consecutive session as lingering fiscal worries continued to weigh on sentiment while a state debt sale added to supply. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 3.25%, 3.35% and 3.89% respectively. Indian financial markets will be closed tomorrow on the occasion of Guru Nanak Jayanti.

The euro held steady against the U.S. dollar on Monday after matching a four-week low earlier as the greenback maintained its gains on optimism that the United States and China would roll back tariffs that have hurt global growth. Officials from both countries said late last week that a rollback of some tit-for-tat tariffs had been agreed as part of a preliminary deal, that has still to be finalized, aimed at ending their trade war. Even though that was subsequently denied by U.S. President Donald Trump on Friday, he did not completely rule out a deal and U.S. benchmark Treasuries held above a key support level at 1.9%, buoying the currency. Moves were slight as traders kept a wary eye on further news on the U.S.-China trade war, and against the safe-haven Japanese yen the dollar fell as market participants reacted to the escalating political confrontations in Hong Kong. The Japanese currency was last up 0.3% at 108.98 against the dollar. The index which tracks the dollar against six major currencies was neutral at 98.317, flirting with a four-week low. The safe haven yen gained ground on Monday and the dollar dipped against the euro as fresh unrest in Hong Kong and mixed signals about the U.S.-China tariff rollback dampened risk sentiment. U.S. President Donald Trump said on Friday that he has not agreed to rolling back the U.S. tariffs sought by China, contradicting earlier reports of officials from both countries confirming the rollbacks. Adding to the uncertainties, Trump over the weekend said talks with China were moving along "very nicely", but the U.S. would only make a deal if it was the right deal for America.