Rupee ended higher, Pound lower vs. Dollar

Tuesday,   28-Jan-2020   05:25 PM (IST)

The Indian rupee ended the session higher at 71.3250/3350 levels compared to its opening at 71.3650/3750 levels after touching the high of 71.2750/2850 levels as crude oil prices fell further on fears about the spread of the coronavirus infection in China. Some recovery in the Chinese Yuan also aided rupee. Rupee traded in the range of 71.2750-71.4050 levels today. The benchmark Brent crude eased for the sixth consecutive session today to $58.71 per barrel, down 1%, on deepening worries over the spread of the deadly virus. The contract has fallen over 9% in the last five sessions. The S&P BSE Sensex plummeted 188.26 points, or 0.46 per cent, to end at 40,966.86 levels. The broader Nifty50 held the psychological mark of 12,000, and ended marginally above the level at 12,055.80-mark, down 63.20 points, or 0.52 per cent. Indian government bonds fell for the first time in four sessions, as traders booked profits ahead of the federal budget later this week. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 3.74%, 4.15% and 4.12% respectively.

Britain’s pound slipped to a one-week low against the dollar and weakened against the euro on Tuesday, as concern about Britain’s future relationship with the European Union creeps back onto the radar of currency markets. Ahead of a knife-edge Bank of England interest rate decision on Thursday, sterling has been pushed and pulled this month by speculation over whether an imminent rate cut is likely. But with Britain formally set to leave the European Union on Friday, concerns about future ties were also coming back into focus, analysts said. The U.S. dollar remains strong Tuesday, as heightened concerns about the spread of the deadly coronavirus in China prompt demand for currencies as safer. EUR/USD holds steady near 2020 lows of 1.1010, as the bid tone around the US dollar picks up pace amid growing concerns over the coronavirus outbreak and likely EU-US trade deal.