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Last Updated : Nov 01, 2019 05:12 PM IST | Source: Moneycontrol.com

Rupee ends higher at 70.81 per dollar

Going Forward, We expect USD-INR to continue to trade in a border range with bearish view, says Rahul Gupta, Head of Currency, Emkay Global Financial Services..

The Indian rupee has recovered from the low and ended higher by 11 paise at 70.81 per dollar.

It opened lower at 70.98 per dollar versus Thursday's close 70.92.

Domestic equity market ended marginally higher with Nifty below 11,900.

Close

At close, the Sensex was up 35.98 points at 40,165.03, and Nifty was up 13.10 points at 11,890.60.

On October 31, the rupee erased its initial gains to end marginally lower at 70.92 against the US dollar due to dollar buying by importers and banks.

Rising crude prices and month-end dollar demand from oil importers weighed on the rupee sentiment.

Since past one-week USD-INR spot has been trading in a broad range of 70.65-71.10, on slight optimism over US-China trade deal and hopes of Fed rate cut. Yesterday, FOMC lowered its interest rate by 25bps to 1.5-1.75%. The move was highly expected and was discounted by the market, that is why we did not see much appreciation in rupee, said Rahul Gupta, Head of Currency, Emkay Global Financial Services.

"In our view the uncertainty regarding US-China trade war and Britain’s divorce from the European Union will continue the slowdown and Fed may have to continue easing again in 2020, not aggressively though."

"Going Forward, We expect USD-INR to continue to trade in a border range with bearish view. 70.65 will act as a crucial support in spot, a break of which can take prices to 70.50, while a bounce from there can lead to 71.20," he added.

Gold prices were little changed on Friday as investors evaluated whether the Federal Reserve's would continue to cut rates, but the metal was set for a second weekly gain as the uncertainty surrounding a US-China trade deal boosted safe-haven appeal.

Oil prices steadied on Friday after a rough week, squeezed about 4% lower by a combination of rising global supply and uncertain future demand.

“Yesterday rupee after opening on a higher note came under pressure against the US dollar after China reported that it doubts a long term trade deal with the US thereby bringing in more uncertainty into the market," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services Private.

"We expect the momentum could remain negative for the rupee unless we don’t get clarity on the same. From the US, focus will now shift to the non-farm payrolls number that will be released in tomorrow’s session," he added.

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First Published on Nov 1, 2019 09:01 am

tags #Rupee

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