The Domestic unit (Rupee) likely to commence weekly opening with firm note against greenback is subdued on early Asian session, starting its week with losses as Democrat candidate was declared the winner of the U.S. presidential elections.
The rupee appreciated on Friday supported by weakness in the US dollar and lower crude oil prices. The rupee has recovered 3.52% from an all-time low, registered in April, it is still down 3.95% against the greenback so far this year.
Four Indian army soldiers and three militants were killed in Kashmir on Sunday, an Indian Defense Ministry spokesperson said, in the bloodiest gun battle in the disputed region since April this year.
INTRADAY RANGE - 73.52 ( 73.89 - 74.26 ) 74.62
GLOBAL HIGHLIGHTS
The Democratic candidate's victory at the U.S. Presidential election was largely priced-in by markets, which had been trading with the view of a Biden presidency and a Republican-controlled U.S. Senate since last week.
Biden won the state of Pennsylvania on Sunday, thereby obtaining the 270 electoral votes needed to win the election against incumbent president Donald Trump. However, Trump is refusing to concede and continuing legal action to contest the result.
However, some investors are betting on the Republicans retaining their majority in the Senate, boosting stocks but putting downward pressure on the greenback. Should their bets be correct, the divided Congress would create more work for the Federal Reserve as the Democrat agenda on taxes or regulations is thwarted.
Shares surged, oil prices jumped and the dollar stayed weak on Monday as expectations of fewer regulatory changes and more monetary stimulus under U.S. president-elect Joe Biden supported risk appetite.
The U.S. Dollar Index edged down in Asian session , barely above a ten-week low Investors retreated from the greenback over the expectation that a Biden administration would mean a steadier U.S. foreign policy and the continuation of a soft monetary policy, as announced by the Federal Reserve during the previous week.
The Reserve Bank of New Zealand is widely expected to hold rates when it meets on Wednesday, the central bank is also expected to lay the groundwork to introduce negative rates in 2021.
The USD/CNY pair edged down 0.25% to 6.5918. The yuan rose to a 28-month peak over news of Biden’s victory, with investors hopeful of a more conciliatory approach to U.S.-China relations.
The GBP/USD pair edged up 0.20% to 1.3180. Bank of England Governor Andrew Bailey and chief economist Andy Haldane are due to speak later in the day, with the focus squarely on negative rates.
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