The Indian domestic unit (Rupee) likely to start fresh week with firm note despite greenback was up on early morning in Asia, with negotiations over the latest stimulus measures in the U.S. floundering and the yuan seeing a drop after the Chinese central bank announced measures to curb the currency’s strength earlier in the day.
USDINR opened at 73.1850/1950 on Friday. On October 9, the Rupee reached the highest of 73.2725 and the lowest at 73.0275 before finished at 73.14/15 levels.
India's coronavirus caseload topped 7 million on Sunday when the health ministry reported 74,383 new infections in the previous 24 hours, with a rise in infections in southern states offsetting a drop in western regions.
Prime Minister Narendra Modi launched a property card scheme on Sunday that he vowed would provide clarity of property rights in villages and enable farmers to use their property as collateral for loans from financial institutions.
INTRADAY RANGE - 72.73 ( 72.97 - 73.22 ) 73.46
GLOBAL OUTLOOKS
As the election looms closer, investors are increasingly betting on the likelihood of Trump losing to Democrat rival Joe Biden in the election, and Biden offering a package with a larger price tag as president.
The USDCNY pair was up 0.40% to 6.7199, after the yuan touched a 17-month high on Friday in both onshore and offshore trade. The Chinese currency has gained more than 6% against the greenback since May, driven in large part by the favorable yield differential between China and other major global economies.
The offshore Chinese yuan fell in the wake of the People’s Bank of China’s decision to lower the requirement ratio for financial institutions when conducting some foreign exchange forwards trading.
The GBP/USD pair edged down 0.08% to 1.3027 ahead of the upcoming European Council meeting on Oct 15 to 16, where the Brexit deal with the U.K. is on the agenda.
The pound reached a one-month high on Friday as investors were cautiously optimistic about the U.K. and the European Union reaching a deal by Prime Minister Bori Johnson’s self-imposed deadline of Oct. 15.
The more than two-month high for the euro comes just a day after the minutes of the European Central Bank’s previous meeting signaled further stimulus in the not-too-distant future.
ECB members were in favor of "keeping a ‘free hand’ in view of the elevated uncertainty," and stressed the need to "carefully assess all incoming information, including the euro exchange rate, and to maintain flexibility in taking appropriate policy action if and when needed," the minutes noted.
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