* USDINR trading range for the day is 63.62-64.19.
* Rupee gained led by financial stocks amid improved investor sentiment after the government decided to cut tax rates on certain products and services.
* India’s December trade deficit widened to its highest in more than three years as higher import bills for gold and crude oil weighed on rising exports.
* Further, sustained foreign funds inflow tracking firm trend in other global bourses also boosted local investors’ sentiment.
Yesterday rupee depreciated by 0.09 percent despite dollar index weakening by 0.19 percent on account of fresh bouts of dollar demand from importers. Also, India’s trade deficit widened to $14.88 billion in Dec’17 from $11.5 billion a year ago. This was on account of higher imports of crude oil and gold. However, the government decided to reduce its borrowing from Rs. 50,000 cr to Rs. 20,000 cr for the current fiscal year. Also, Indian equity market remained positive during the day with a surge of around 0.65 percent in Nifty Index.
The factors driving dollar index down were worries that Donald Trump may end NAFTA trade agreement with its counterparties. Also, the US government had went on shutdown from Friday midnight after senate negotiators had failed to reach on a agreement to keep funded over amid a dispute over immigration and border issue. However, the shutdown got ended today as the senate voted for a temporary funding bill. However, US building permits came in line with market estimates at 1.3million for Dec’17.
USDINR is expected to move sideways in the coming session
* EURINR trading range for the day is 77.99-78.58.
* Euro dropped as the dollar regained some footing after slipping on a U.S. government shutdown, supported by higher Treasury yields.
* Germany’s producer price inflation eased in December, figures from Destatis showed.
* Weidmann defended Germany’s large budget and current account surpluses after the IMF’s Lagarde said government should make use of surpluses to promote growth.
EURUSD appreciated by 0.33 percent while EURINR depreciated by 0.38 percent during the same time frame.
ECB spokesperson commented on cutting down the 2.55 Euro monetary stimulus program in 2018 if inflation and growth persists in the Euro area. Also, CPI data from the Euro region came in line with market estimates at 1.4% for Dec’17.
EURINR is expected to depreciate in the coming session
* GBPINR trading range for the day is 88.48-89.09.
* GBP traded in range after disappointing UK retail sales data dented broadening optimism about a currency that is enjoying its best winning streak since 2014.
* Figures from the Office for National Statistics showed 2017 was the weakest year for retail since 2013 and a drop in sales of 1.5 percent from November.
* The tepid retail sales figures rounds off a week of disappointing data for sterling bulls, including a softening of UK inflation in December.
GBP appreciated against the US dollar by 0.98 percent during the day. Also, GBPINR depreciated by 1.09 percent during the same time period.
UK inflation data for Dec’17 announced yesterday came in at 3% which was 0.1 percent lower than Nov’17 of 3.1 percent which helped in the strengthening of pound. However, retail sales came in at -1.5% which is lower than market estimates of -0.8 percent for Dec’17.
GBPINR is expected to depreciate in the coming session
* JPYINR trading range for the day is 57.47-57.92.
* JPY traded in range as the dollar fell as the Senate moved to schedule a vote at noon on the day to fund the government for three weeks.
* Japan’s industrial production increased less than initially estimated in November, latest figures from the Ministry of Economy, Trade and Industry showed.
* The value of core machine orders in Japan surged a seasonally adjusted 5.7 percent on month in November, the Cabinet Office said.AFTER POST CONTENT
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