The Indian rupee is expected to open higher against the dollar on bets that the cut in corporate taxes would help spur foreign fund inflows into local equities. The rupee is likely to open around 70.76-70.81 per dollar with the previous close of 70.93.
A change in sentiment following the tax cut could help reverse the trend of foreign investors paring their exposure to Indian equities. Worries over India’s economic outlook had prompted foreign investors to take out almost $5 billion in three months prior to the tax cut announcement.
Meanwhile, other Asian currencies were rangebound today while regional equities edged higher. Investor focus remains on next month’s high level trade talks between the U.S. and China after deputy level discussions concluded last week. The U.S. Trade Representative’s office following the talks said the discussions were positive and that Washington looked forward to welcoming the Chinese delegation in October.
The U.S. economy continued to perform better that its major peers. The IHS Markit PMI rose to 51 this month from 50.3 in August, data released yesterday showed. The dollar index edged higher in Asia trading on Tuesday, heading for its third day of advance.
13 Jul 2020 04:57 PM
Indian shares ended higher on Monday, led by a rally in Reliance Industries, ahead of June's inflation data which investors bet would lead to further interest rate cuts by the central bank.
13 Jul 2020 02:43 PM
The Indian rupee was little changed against the greenback, amid focus on decline in the dollar index
13 Jul 2020 11:45 AM
Indian shares climbed on Monday, as investors bet June inflation data later in the day would lead to further interest rate cuts by the country's central bank, while Reliance Industries gained for a third session.
13 Jul 2020 11:15 AM
The yuan hovered around the key 7 per dollar threshold on Monday, ahead of economic data this week
13 Jul 2020 10:45 AM
Gold prices rose on Monday, holding ground above the key $1,800/oz level, as a weaker dollar and worries over surging COVID-19 cases around the globe kept the safe-haven metal underpinned.
13 Jul 2020 10:31 AM
The Indian rupee was at 75.1275/75.1375 to the dollar against 75.2000/75.2100 in the previous session