The rupee settled at 71.18 against 71.0450 at the previous close. The
local unit moved in 71.0625-71.2325 per dollar band intra-day.
The Indian rupee fell for a second week, as concerns that likely preelection
spending may lead the nation to deviate from its fiscal
consolidation path triggered outflows from local bonds. Amid
domestic fiscal worries, inflows are subdued as investors are not
very keen on investing in such country’s assets The pressure will
likely continue until some clarity is attained. However, U.S-China
trade talks will be the next immediate trigger to influence rupee’s
move. We expects rupee to trade in a 70.70-71.40 band until the
interim budget that is likely to be detailed on Feb. 1
The dollar held firm against its rivals on Friday and is poised for its
first weekly gain in five weeks as investors trimmed some of their
excessive short bets against it after some weak eurozone data this
week. While expectations of a U.S. rate pause have manifested in
money markets, bets on policy tightening by other major central
banks have also receded, giving a boost to the dollar.
Prime Minister Theresa May's Brexit deal was defeated in parliament
on Tuesday but she won a subsequent vote of confidence, which has
removed some political uncertainty. Analysts have interpreted this
week's events as reducing the risk that the country will fail to strike a
deal with European Union before it leaves the bloc on March 29.
Oil prices rose over 1 pct on Friday after a report from the
Organization of the Petroleum Exporting Countries (OPEC) showed
its production fell sharply last month, easing some fears about
Gold slipped to the lowest in more than a week on Friday as hopes of
a thaw in the U.S.-China trade dispute perked up stock markets,
while palladium held above $1,400 on a supply crunch.
Global Markets at one Glance
Markets at 5.00pm
Key Events of the Day
Retail Sales (MoM) (Dec)
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