​​​
  1. As exit polls show BJP’s victory in Gujarat polls, Rupee logs first rise in three days

As exit polls show BJP’s victory in Gujarat polls, Rupee logs first rise in three days

The rupee today snapped a two-session fall and rebounded by 10 paise to end at 64.34 a dollar amid expectations that the ruling BJP will emerge victorious in Gujarat polls.

By: | Updated: December 14, 2017 7:33 PM
individual wealth growth, individual growth, report on individual wealth growth The rupee today snapped a two-session fall and rebounded by 10 paise to end at 64.34 a dollar amid expectations that the ruling BJP will emerge victorious in Gujarat polls. (Image: Reuters)

The rupee today snapped a two-session fall and rebounded by 10 paise to end at 64.34 a dollar amid exit polls showing that the ruling BJP will emerge victorious in Gujarat polls. Domestic currency market largely withstood volatility and impact from the latest US central bank rate hike overnight even as headline inflation accelerated further to 3.93 per cent in November.

Overall forex sentiment also took some comfort from lower than forecast second quarter current account deficit
(CAD) data. The country’s CAD for the second quarter doubled to USD 7.2 billion, or 1.2 per cent of GDP fiscal on annual basis, but narrowed sharply from USD 15 billion (2.5 per cent of GDP) in the preceding quarter, official data showed.
A spectacular rebound in local equities further supplemented the currency momentum in a healthy way.
Expectations of a comfortable victory for the BJP in Gujarat, the home state of Prime Minister Narendra Modi, also
weighed on the trading front.
Meanwhile, the Federal Reserve raised short-term interest rates by a quarter point to 1.25-1.5 per cent for a third time this year and predicted more increases to follow in 2018. The fed also upgraded the economic outlook, raising GDP growth forecasts and lowering the unemployment rate for the
next year.
The dollar held steady against other major currencies ahead to a string of US economic data due later in the day.
In the meantime, domestic equity markets staged a stunning rebound after two days of massive sell-offs on the
back heavy fag-end buying spree even as investors turned more optimistic ahead of Gujarat exit polls later today.
The benchmark Sensex surged over 194 points to end at 33,246.70, while the Nifty rose 59 points at 10,252.10.
Brent crude, an international benchmark, is trading at USD 62.13 a barrel in early Asian trade.
The home currency resumed on a positive note at 64.35 from Wednesday’s close of 64.44 at the Interbank Foreign
Exchange (forex) market as currency traders largely shrugged off the Federal Reserves’ widely expected US rate hike. It maintained the buoyancy throughout the trade and touched an intra-day high of 64.2450 in mid-afternoon deal before ending at 64.34, showing a smart gain of 10 paise, or
0.16 per cent.
The local unit had depreciated 7 paise in last two days. The RBI, meanwhile, fixed the reference rate for the
dollar at 64.2798 and for the euro at 75.9980. The dollar index, which measures the greenback’s value
against a basket of six major currencies, was up at 93.35 in early trade.
In cross-currency trades, the rupee dropped further against the pound sterling to finish at 86.52 from 86.10 per
pound and drifted against the Japanese yen to settle at 57.11 per 100 yens from 56.87 yesterday. It also fell back against the euro to close at 76.06 from 75.66 earlier.
Elsewhere, the pound sterling regained some lost ground against the US Dollar after the UK retail sales rose 1.1 per
cent over the month in November, surprising on the upside. The Bank of England is expected to stay pat on policy later on Thursday.
The common currency euro, however, retreated against the greenback, giving back the Fed-related gains after data showed manufacturing activity rose to an all-time high in Germany and the Eurozone. In forward market today, premium for dollar declined owing to mild receiving from exporters.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Go to Top