INSUBCONTINENT EXCLUSIVE:
US dollar on Monday amid higher dollar demand from importers and rising crude oil prices
This is the third straight session of loss for the domestic unit, during which it has lost 126 paise
Forex traders said that dollar demand from importers and heavy selling in domestic equities added pressure to the domestic unit
However, persistent foreign fund inflows supported the rupee and capped the losses to some extent, they added.At the Interbank Foreign
Exchange (forex) market, the rupee opened lower at 69.40 and fell further to touch the day's low of 69.71
It finally ended at 69.67 per dollar, down by 44 paise against its previous close
On Friday, the rupee had skidded 6 paise to finish at 69.23 per dollar."Rupee started the week on negative note amid surge in crude oil
Rupee contracts fell across curve for third day amid dollar demand from the oil importers," said VK Sharma, head PCG capital markets
strategy, HDFC Securities.The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.21 per cent to
Brent crude futures, the global oil benchmark, rose 0.43 per cent to $70.64 per barrel."Oil extended its rally to a five-month high as
conflict in major producer Libya increased the risk of new supply outages
Brent crude oil last quoted at $70.59 barrel up 0.4 per cent, highest level since November 2018," MR Sharma said.Meanwhile, foreign
investors (FIIs) remained net buyers in the capital markets, putting in Rs 329.60 crore on a net basis on Monday, as per provisional
data."(The) RBI in its recent MPC meet did not explicitly shift tone to accommodative from neutral which puts a question mark on the growth
prospects for Indian assets
This did not go down well with the forex markets which led to an INR sell-off," said Rajesh Cheruvu, chief investment officer, WGC
Wealth.Many emerging currencies weakened in the day despite positive news flow of the US-China trade talks and US jobs reports allaying
This suggests market participants have already priced in these news snippets and look to book profits in riskier assets which are likely
more sensitive to any downside, he added.Equity benchmarks Sensex and Nifty on Monday faced high volatility and closed with losses
The BSE gauge Sensex ended lower by 161.70 points at 38,700.53, while the NSE Nifty lost 61.45 points to settle the day at
11,604.50.Meanwhile, Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.5142 and for rupee/euro
The reference rate for rupee/British pound was fixed at 90.7804 and for rupee/100 Japanese yen at 62.38.Get the latest election news, live
updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections
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