Rupee pares losses on hope of US-China trade deal; closes 5 paise down

PTI Mumbai | Updated on October 09, 2019 Published on October 09, 2019

Representative image

The dollar index fell by 0.04 per cent to 99.09

The rupee pared most of its initial losses and settled the day marginally down by 5 paise as China offering to buy additional US goods to ease trade tensions bolstered hopes of a partial deal between the two major economies.

Forex traders said most of the Asian currencies gained against the US dollar on China’s offer to buy extra US goods.

At the interbank foreign exchange market, the rupee opened lower at 71.20 against the US dollar. During the day, the domestic unit fluctuated between a high of 70.94 and a low of 71.22. The local unit finally settled at 71.07, down 5 paise over its previous close.

On Monday, the domestic unit had settled at 71.02. Forex market was closed on Tuesday on account of the Dussehra festival.

“The local unit opened lower but gradually recovered from the day’s low on the expectation of partial deal between US and China trade,” said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities.

Forex traders said market participants are hopeful about the US-China trade meeting on October 10. “Most of the Asian currencies gained against the dollar after China offer to buy extra USD 10 billion of US Agriculture goods and open for partial trade deal,” Sharma said.

Forex traders said a strong recovery in the domestic equity market and weakening of the American currency vis-a-vis other currencies overseas also helped the rupee pare initial losses.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 485.24 crore on Wednesday, exchange data showed.

Brent futures, the global oil benchmark, increased 1.01 per cent to USD 58.83 per barrel. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.09 per cent to 99.04.

The 10-year government bond yield was at 6.45 per cent on Wednesday. On the domestic market front, the BSE Sensex surged 645.97 points or 1.72 per cent to end at 38,177.95, while the broader NSE Nifty zoomed 186.90 points or 1.68 per cent to 11,313.30.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 70.9763 and for rupee/euro at 77.9282. The reference rate for rupee/British pound was fixed at 87.4182 and for rupee/100 Japanese yen at 66.41.

Published on October 09, 2019

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.