Rupee ended lower, Pound lower vs. Dollar

Tuesday,   06-Apr-2021   04:12 PM (IST)

The Indian rupee ended the session lower at intraday low of 73.43/44 levels compared to its opening at 73.23/24 levels weighed down by dollar demand from importers. Rupee had risen to an intraday high of 73.2025/2125 levels earlier in the session on the back of exporters' dollar sales. Rupee traded in the range of 73.2025-73.43 levels today. Traders awaited the Reserve Bank of India's commentary on the economic outlook when it unveils its policy decision tomorrow. Indian federal government bond yields ended largely unchanged ahead of the Monetary Policy Committee’s decision tomorrow amid expectations that the rate-setting panel will remain accommodative for yet some more time to come. The benchmark Sensex index settled at 49,201 levels, up 42 points, or 0.09 per cent, and the Nifty closed at 14,683 levels, up 46 points or 0.3 per cent. In the forward segment 1mth, 3mth and 6mth annualized premia ended the day at 4.57%, 4.57% and 4.74% respectively.

Sterling slipped on Tuesday as investors took some cash off the table after cable jumped to its highest point in more than two weeks as traders continued to bet on a speedy re-opening of the British economy. Versus the dollar, sterling was 0.4% lower at $1.3854 at 0859 GMT, after earlier touching $1.3919, its highest since March 19. Bets on a speedy economic recovery, spurred by a faster COVID-19 vaccination programme than the euro zone’s, have supported sterling over the past few months. Sterling had its best quarter since 2015 versus the euro, gaining around 4.8%. But as traders returned from a long weekend in Europe, sterling was 0.4% lower versus the euro at 85.27 pence. Market participants continued to expect further gains for the pound in the months ahead. With the vaccine programme rolling out rapidly across the UK and infection numbers falling, British Prime Minister Boris Johnson confirmed on Monday a planned re-opening of the economy would take place next week. Shops, gyms, hairdressers and outdoor hospitality areas in England will re-open. The government was also looking at a COVID-status certification system, or vaccine passport, to help re-open larger events. Britain will begin the rollout of Moderna’s COVID-19 vaccine in mid-April, vaccine deployment minister Nadhim Zahawi said on Tuesday, adding the inoculation programme was on track to meet government targets. Some 12 million second doses are planned to be distributed in April. PM Johnson also said on Monday his government hoped that non-essential international travel would resume from May 17, but did not want to underestimate the growing number of COVID-19 cases elsewhere.