Rupee ended higher, Euro lower vs. Dollar

Monday,   27-Jan-2020   05:23 PM (IST)

The Indian rupee ended the session tad higher at 71.4350/4450 levels compared to its opening at 71.51/52 levels after touching the high of 71.39/40 levels as foreign banks’ dollar sales trimmed early losses stemming from weak regional risk appetite. Rupee opened lower today as the offshore yuan extended its fall amid concerns about a coronavirus infection in China that prompted investors to shift to safe-haven assets. The offshore Chinese yuan was down at 6.9829 to the dollar. Indian equities began the last week ahead of the presentation of the Union Budget for financial year 2020-21 on a shaky ground with most counters collapsing like a pack of cards on Monday. The benchmark S&P BSE Sensex plunged 458.07 points, or 1.10 per cent, to settle at 41,155.12 levels. The broader Nifty50 ended the day at 12,119-mark, down 129.25 points or 1.06 per cent. Indian government bonds gained for a third consecutive session, tracking lower crude oil prices and U.S. Treasury yields, even as the broad market awaits the federal budget later this week. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 3.57%, 4.07% and 4.06% respectively.

EUR/USD turns negative and hits fresh YTD lows near 1.1020 after the German IFO Survey for January disappointed across all indicators. Further, growing coronavirus concerns also add to the weight on the spot. GBP/USD regains poise and nears the 1.3100 mark despite resurgent US dollar demand across the board, in the face of China’s coronavirus outbreak concerns. The focus remains on Thursday’s BOE for fresh direction on the pound. China’s yuan tumbled to a 2020 low on Monday and commodity-linked currencies such as the Australian dollar fell, as growing fears about the spread of a coronavirus from China pushed investors into safer assets. The yen was the main beneficiary, although its move higher was limited. The Japanese currency touched its highest since Jan. 8. Health authorities around the world are working to prevent a pandemic of the virus, which has killed more than 80 people in China. Nearly 2,800 people have been infected globally. China’s National Health Commission said on Sunday the ability of the virus to spread was getting stronger. China’s government announced it would extend the Lunar New Year holidays to help prevent and control the virus.