On Tuesday , We are expecting Domestic unit ( Rupee ) commence trading with firm note against greenback. The risky assets firm on Trump returns to white house , investors optimistic on stimulus package, Asian Indices taking cues from wall streets (overnight +465 (1.68%)).
Indian Rupee support comes from a rare current account surplus, stock inflows and asset sales that had already seen billions of dollars in inflows. The country could post $72.5 billion in balance-of-payment surplus for the fiscal year ending March, according to Barclays Plc. That would be the most since the year ended March 2008.
India will extend a surcharge on taxes on luxury goods including cars and tobacco products beyond 2022, under plans to help states repay loans raised to meet revenue shortfalls in the current fiscal year, the finance minister said on Monday.
INTRADAY RANGE - 72.68 ( 72.95 - 73.43 ) 73.76
GLOBAL OUTLOOK
The dollar’s positive correlation with U.S. equities may break this quarter due to a drop in its carry-trade appeal and a possible fiscal stimulus package.
The stimulus will likely boost economic optimism, crimping demand for haven assets like the dollar. Also its carry-trade appeal -- referring to borrowing in cheaper-financing currencies to invest in the greenback-- has been undermined by the Federal Reserve’s easy monetary policy that pushed yields lower.
Should inflation rise because of the Fed’s dovish stance and increased stimulus, the greenback will suffer as real yields drop and shares may advance.
The pound moved higher against the dollar on rising expectations the EU and UK will agree on a trade deal, with Goldman Sachs forecasting both parties "likely" to reach an accord by early November.
Hopes for an agreement on a post-Brexit trade deal were boosted on reports EU chief negotiator Michel Barnier aims to hold talks with European coastal states to get more freedom to negotiate terms with the U.K. on fisheries, a key sticking point that has held back progress.
Oil prices edged higher in early trade on Tuesday after U.S. President Donald Trump returned to the White House from hospital after being admitted for treatment for COVID-19 last Friday, while another storm brewed in the U.S. Gulf of Mexico.
The Norway strike will cut the country's total output capacity by just over 330,000 barrels of oil equivalent per day, or about 8% of total production, according to the Norwegian Oil and Gas Association.
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