India Rupee Snaps 3-Day Fall On Exporter, Speculative Dollar Sales

India Rupee Snaps 3-Day Fall On Exporter, Speculative Dollar Sales

22 Oct 2020 03:09 PM

The Indian rupee rose for the first time in four sessions against the U.S. currency, as dollar selling by exporters and speculators outweighed the impact of weak risk appetite in the region.

The rupee was quoted at 73.53 to a dollar at 2:00 p.m. compared with 73.58 in the previous session. In initial trades, the currency had dropped to 73.78, the lowest level since Sep. 30.

Risk sentiment in the region faltered after U.S. President Donald Trump accused Democrats of not willing to devise an acceptable compromise on the stimulus package, leading to a deadlock in high-level negotiations. Trump tweeted that he did not believe the Democratic Party “will be willing to do what is right for our great American workers, or our wonderful USA itself, on stimulus.”

Analysts have pointed out that if by any chance a deal is reached between the Democratic Party and the White House, it may not be able to clear the upper house of the U.S Congress amid opposition by Trump’s own party members. The need to reach a deal quickly also assumes significance as the Presidential election on Nov. 3 draws closer.

The BSE Sensex slipped 0.4%, compared with a more-than-1% fall on the South Korean gauge and a 0.8% decline in Chinese and Japanese equities. U.S. futures slid 0.2%, indicating that the gauge could extend yesterday’s drop.

The dollar index advanced 0.1% to 92.70 amid the risk-off tone and Asian currencies dropped. The onshore Chinese yuan slipped 0.3% to 6.67 to a dollar.