The Rupee settled at 71.71 to a dollar

The Rupee settled at 71.71 to a dollar

19 Nov 2019 05:40 PM

The Indian rupee rose to a one-week high against the dollar, as foreign banks’ greenback sales and strong local equities outweighed the uncertainty over a long-awaited U.S.-China trade deal. The currency settled at 71.71 to a dollar, its highest since Nov. 11, against 71.84 at previous close. The rupee opened at 71.91 and fell to the day’s low of 72.01, before rising to the day’s high of 71.68 in late trade. Broad market traders are nervous as the date of another round of U.S. tariffs on Chinese goods is nearing, and so far there has not been any concrete development on the trade talks. The Indian rupee began trading on a negative note today following mixed reports about the prospects of a trade deal between the United States and China.

The U.S. government yesterday issued a new 90-day extension allowing U.S. companies to continue doing business with Huawei Technologies. However, CNBC reported quoting a Chinese government source that the mood in Beijing about a trade deal was pessimistic due to U.S. President Donald Trump’s reluctance to roll back tariffs.

Asian equities settled mixed. The Hang Seng index rose 1.5% while the Straits Times Index shed 0.6%. India’s benchmark BSE Sensex closed near a two-week high, rising 0.5% today. Foreign investors have bought about $2 billion of local bonds and shares this month.

The dollar index was steady after falling for the third day yesterday. Market participants await the minutes of the Federal Reserve’s October policy, due to be released tomorrow. The Fed had cut policy rates for the third consecutive time in its last meeting.
The benchmark Brent crude oil contract traded 0.9% lower at $61.89 per barrel, adding to yesterday’s decline of more than 1%.