The Indian rupee is expected to see strong performance against the US dollar if global headwinds and inflows remain robust in 2020, a report said.
The Indian rupee is expected to see strong performance against the US dollar if global headwinds and inflows remain robust in 2020, a report said. “Given such global back drop and volatility arising from a global economic slowdown, the US-China trade war and ongoing Brexit developments, to remain competitive in the global markets the RBI has stepped in to maintain the INR supply at adequate levels,” Kotal’s Annual Market Outlook 2020 said. Despite healthy fund flows in the form of foreign portfolio investor (FPI) flows and foreign direct investment (FDI), the rupee lost value in 2019, weakening by 2.259 per cent against the dollar. The rupee was the second-worst performer in Asia. The rupee settled 3 paise down at 71.11 against the US dollar on higher crude prices in the trade on Monday, tracking a steady rise in crude oil prices and weakness in domestic equities. The domestic unit had settled at 71.08 against the American currency on Friday.
According to the latest RBI data, India’s forex reserves stood at $454.948 billion as on December 20, in comparison to $393.404 billion at the end of December 2018. FPIs have pumped in $18.19 billion into equities and bonds in 2019.
Meanwhile, market benchmarks tumbled from record highs to close deep in the red on Monday as investors booked profits in index heavyweights Reliance Industries, Kotak Bank, HDFC Bank and TCS following their quarterly results. After hitting a record intra-day high of 42,273.87, the 30-share BSE Sensex gave up all gains to settle 416.46 points, or 0.99 per cent, lower at 41,528.91. Likewise, the broader NSE Nifty sank 127.80 points, or 1.03 per cent, to 12,224.55. It hit a record intra-day high of 12,430.50 in early session.