ADVERTISEMENT

Rupee Moves Higher To Close At 73 Against Dollar: 10 Things To Know

The rupee is down more than 14% so far this year
The rupee is down more than 14% so far this year
  1. Analysts expect the rupee to continue to trade sideways going forward.
  2. “The markets are likely to remain range-bound as US votes in the midterms today. Our markets will react to the outcome only on Friday and therefore there is a significant gap risk,” said IFA Global, a forex advisory firm.
  3. The dollar dipped against a basket of six major currencies amid uncertainty over the outcome of the US midterm elections. The dollar index - which measures the greenback against six major peers - fell 0.24 per cent, with the euro up 0.25 per cent to $1.1414.
  4. Analysts cited pre-election caution after the greenback has rallied more than 7.0 per cent from April lows.
  5. Opinion polls and election forecasters favour Democrats to secure the minimum 23 seats they need to capture a majority in the US House of Representatives, which would enable them to stymie US President Donald Trump's legislative agenda and investigate his administration.
  6. Crude oil prices declined after Washington granted sanctions exemptions to top buyers of Iranian oil, lifting supply concerns and turning the market's focus to worries that an economic slowdown may curb fuel demand. Brent crude futures - the global benchmark for crude oil  - traded below the $73-a-barrel mark.
  7. Foreign funds pulled out Rs 499.71 crore from the capital markets on a net basis Tuesday, while domestic institutional investors bought shares worth Rs 118.69 crore, provisional data from the NSE showed.
  8. Meanwhile, domestic stock markets closed mildly higher, as they gave up most of the day's gains. The Sensex finished 40 points - or 0.1 per cent - higher. Advances in IT and energy stocks pushed the markets higher, but losses in FMCG and public sector banking shares limited the upside.
  9. Investors will keenly watch the outcome of a two-day meeting of the Federal Reserve - the US central bank - which begins on Wednesday.
  10. The rupee may appreciate to 71 against the dollar by March 2019 on positive factors such as the dip in crude prices and the $75-billion currency swap with Bank of Japan, according to credit ratings agency Crisil.
(With agency inputs)