We expect domestic unit will start Tuesday session with weaker note as dollar index up on early morning in Asia, clinging on to gains from the previous session as COIVD-19 fears and worries over the U.S. Congress’ stimulus impasse drove a heavy selloff in almost all other assets.
Despite domestic equity market traded with significant losses, rupee strengthened 7pips and closed at 73.3850 against the US dollar on Monday. At the interbank forex market, the domestic unit opened at 73.43 against greenback, and finally settled for the day at 73.38 against the greenback, During the session, the local unit witnessed an intra-day high of 73.26 and a low of 73.4550 against the US dollar.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 629.81 points lower at 38,216.01, and the broader NSE Nifty fell 211.50 points to 11,293.45.
INTRADAY RANGE - 73.19 ( 73.35 - 73.63 ) 73.85
GLOBAL OUTLOOK
A fresh outbreak of COVID-19 in Europe, with the looming spectre of fresh lockdowns, and jitters over the continuing impasse in the U.S. Congress over the latest stimulus measures as the U.S. presidential election draws nearer, also saw investors turning to the greenback.
The GBP/USD pair inched down 0.03% to 1.2818, with U.K. Prime Minister Boris Johnson due to announce new restrictions on bars and restaurants later in the day, aiming to curb the growing number of COVID-19 cases in the country.
The U.K.’s Chief Scientific Adviser Patrick Vallance warned on Monday that without urgent action, the current infection rate could lead up to 50,000 new cases a day by mid-October.
Donald Trump said during a political rally on Monday that his questions about adjusting the dollar’s exchange rate to counter what he referred to as Chinese currency manipulation, were rebuffed.
On Monday session , Dow plunged led by a slump in economy-sensitive value stocks as diminishing hopes of further stimulus raised concerns about the pace of the U.S. economic recovery.
The Dow Jones Industrial Average fell 2.29%, or 629 points. The S&P 500 was down 1.7550%, while the Nasdaq Composite fall 0.8525%.
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