Welcome Guest! | World Time






New York

Rupee ended higher, Pound higher vs. Dollar

Wednesday,   18-Nov-2020   04:08 PM (IST)

The Indian rupee ended the session higher at 74.1950/2050 levels compared to its opening at 74.49/50 levels after touching the high of 74.09/10 levels as foreign banks' greenback sales, likely for their custodian clients, prompted culling of dollar long positions. However, state-run banks’ dollar purchases, speculated to be on behalf of the central bank, trimmed some of the gains. Rupee traded in the range of 74.09-74.53 levels. Meanwhile, Asian stocks and currencies were broadly higher despite a weak session on Wall Street overnight amid disappointing U.S retail sales data. Indian federal government bond yields ended largely unchanged, ahead of the central bank’s simultaneous purchase and sale of notes at a so-called special open market operation tomorrow. Continuing their northward movement, the benchmark indices gained another 0.5 per cent on Wednesday to settle at fresh closing peaks. The S&P BSE Sensex topped the 44,000-mark to end the day at 44,180 levels, up 227 points, or 0.52 per cent while NSE's Nifty closed the session at 12,938, up 64 points, or 0.5 per cent. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 3.29%, 3.45% and 4.07% respectively.

Sterling was aided on Wednesday by a weaker U.S. dollar and by hopes that Britain will forge a post-Brexit trade deal with the European Union in time for its departure from the EU’s customs union and single market in January. Those hopes have been fed by recent positive comments from British government officials, but also by the announcement that Dominic Cummings, one of the political architects of the Brexit project, was set to leave the government. The pound was last trading up at $1.3298, but it was flat against the euro at 89.44 pence. It was also neutral versus the Japanese yen at 138.08. British inflation picked up by a little more than expected in October, pushed higher by prices for clothing and footwear and food. As England remained in full lockdown, on Tuesday reporting 598 deaths within 28 days of a positive COVID-19 test, the highest figure since May, worries persisted about how detrimental this could prove for the British economy. Hopes that a vaccine could soon become available received a boost after two pharmaceutical companies recently reported successful results. Bank of England Deputy Governor Dave Ramsden said on Tuesday that positive news about COVID-19 vaccines could help to reduce the risks facing Britain’s economy but the central bank was unlikely to revise up its forecasts as a result.