Rupee likely to start fresh week with weaker note ahead of US election 2020 outcome. Currency volatility can extend well beyond Election Day because there is a high risk the losing candidate will dispute the election results. The 2000 election took around one month to resolve the disputes.
On last trading session ( Thursday ) Rupee under pressure against greenback , USDINR getting bids from intraday lower levels at 73.9275. Day range was 74.1825 - 73.9275, before finished at 74.10/11 levels.
India's largest carmakers posted strong monthly sales numbers on Sunday, signaling that demand could be returning to the country's ailing economy during the festival period.
Note:- Exporter & Importers must cover position with Option Strategies.
INTRADAY RANGE - 73.92 ( 74.15 - 74.62 ) 74.84
GLOBAL OUTLOOKS
Asian stocks were mostly up on Monday morning, boosted by positive data from China but with investors jitters over the overall global economic recovery from COVID-19 and the U.S. presidential election on Nov. 3 capping gains.
Although opinion polls still show that Democrat candidate Joe Biden is ahead of incumbent president Donald Trump, some investors were wary of predicting the election outcome as a contested election could still be possible.
The U.K. became the latest country to announce restrictive measures, with a second lockdown to begin later in the week, Prime Minister Boris Johnson said on Sunday. The measures come as the U.K. saw more than 20,000 cases daily, with over 10 million cases in Europe alone.
U.S. saw a daily death toll of up to 1,000 people. The incessantly rising numbers of COVID-19 cases, uncertainty over a tight U.S. election, Congress’ failure to pass the latest stimulus measures ahead of Nov. 3, and the gloomy corporate outlook are all dampening investors’ risk appetite.
The euro has been selling since infection cases and lockdowns stood out in Europe. The euro steadied in early Asian trade but was close to hitting long-term lows against the greenback and Japanese yen.
It last fetched $1.1647, a fraction away from a four-week low of $1.1640 marked last week, while against the yen, the common currency changed hands at 121.90
Sterling traders also continue to eye updates on Brexit trade talks. EU and British Brexit negotiators will continue talks in Brussels on Monday until around mid-week, people on both sides told Reuters, in a sign of continued efforts to avoid a breakdown in trade when their deal deadline ends in less than nine weeks.
Comments