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Rupee ended higher, Euro up vs. Dollar

Monday,   29-Jun-2020   02:30 PM (IST)

The Indian rupee ended the session higher at 75.5825/5925 levels compared to its opening at 75.63/64 levels after touching the high of 75.5350/5450 levels as foreign banks’ dollar sales, likely related to investment flows, trimmed risk aversion in the region due to rising coronavirus cases in the United States. The rupee traded in the range of 75.5350-75.6475 levels today. Traders said the inflows were related to Reliance Industries offloading equity in its digital subsidiary to 10 foreign entities. Asian currencies were broadly higher while the dollar index edged lower. Indian government bond yields ended lower on value-buying from investors ahead of the quarter-end, while traders still hope for some bond-supportive measures from the central bank soon. The Indian equity markets declined over a per cent on Monday, dragged down by public sector banks and metal stocks. The Standard and Poor’s warning that the Indian economy is in deep trouble also weighed on investor sentiment.  At 2:11 pm, the S&P BSE Sensex was trading at 34,874, down 297 point, while the broader Nifty50 was at 10,287 down 96 point. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 3.41%, 3.52% and 3.67% respectively.

EUR/USD is trading around 1.1255, up from the lows as markets are trying to recover from worrying coronavirus developments. Euro zone inflation figures, US Pending Home Sales, and COVID-10 figures are eyed. GBP/USD is trading closer to 1.2335 amid hopes for a new fiscal stimulus program from the government and as "intensive" Brexit talks kick-off. Concerns about a coronavirus flare-up in Leicester are worrying. Sterling flattened on Monday from a one-month low touched on Friday against a weaker dollar as Prime Minister Boris Johnson signalled he would double down on plans to increase public investment, but Brexit risks capped the gains. Speaking in a radio interview, Johnson said that a return to austerity would be a mistake as the country tries to recover from the coronavirus hit to the economy. Home Secretary (interior minister) Priti Patel said on Sunday that the government would roll out a plan on Tuesday to boost spending in infrastructure.   The dollar reversed some of its overnight losses in early London trading with the rising number of coronavirus cases keeping the mood in check and fears of a second wave of the pandemic taking the shine off improving economic data. The global death toll from COVID-19 reached half a million on Sunday, according to a Reuters tally. Cases surged in Southern and Western U.S. states, prompting California to order some bars to close in the first major rollback of efforts to reopen the economy.