Rupee ends higher; uptick in Asia FX, state-run banks’ dollar sales help
The yuan rose above 7 per dollar for the first time since May 2023, lifted by investor optimism a day after broad policy easing measures were announced to shore up the country’s flailing economy.
The rupee ended at 83.5925 against the U.S. dollar, compared to its previous close at 83.67.
The currency rose to as high as 83.5150 during the day, but trimmed its gains as the dollar index firmed in the latter half of the session.
The yuan rose above 7 per dollar for the first time since May 2023, lifted by investor optimism a day after broad policy easing measures were announced to shore up the country’s flailing economy.
State-run banks were “on the selling side (on USD/INR),” while near-term sentiment on the local currency is also positive, a foreign exchange trader at a private bank said.
Other Asian currencies were mostly higher, led by the Indonesian rupiah and Malaysian ringgit, which were up 0.5% each.
“If USD/CNH breaks with momentum below 7.00, we think it would be broadly supportive of global EM currencies and help tilt the dollar lower,” ING Bank said in a note.
The dollar index has been on the backfoot amid rising wagers on another 50 basis points rate cut by the Federal Reserve in November.
Interest rate futures are currently pricing in a 61% chance of the Fed delivering a 50 bps cut, compared to 53% a day earlier, according to CME’s FedWatch tool.
Remarks from Fed policymakers are in focus this week with Chair Jerome Powell slated to speak on Thursday alongside a slew of other officials.
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News on
(What’s moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
…more
Read More News on
(What’s moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
…more
Source: The Times of India