The rupee rose against the US dollar

Abhishek Goenka IFA Global

The USDINR pair made a flat opening at 74.43 levels and traded in the range of 74.35-74.49 with a downside bias. The pair finally closed the day at 74.38 levels. The rupee rose against the US dollar today because banks sold the US unit likely for overseas investments into Indian companies looking to raise capital. Risk sentiment was weak due to the crackdown in China on big technology, education, and real estate companies that led to a sell-off in shares of Chinese companies listed in the US stock markets. This led to a ripple effect across asset classes in most Asian countries.

Back home, a fall in local equities also dampened the sentiment for the Indian unit. On an annualized basis, a premium on the one-year, exact-period dollar/rupee contract stood at 4.42%, against 4.41% recorded in the previous day. The new 10-year G-Sec benchmark 06.10 GS 2031 closed the day at 6.1879% levels. The RBI set the reference rate for USDINR at 74.43 levels.

German consumer sentiment held steady heading into August as shoppers grew more ready to spend but took a less upbeat view on the economic outlook than a month earlier. The GfK institute stated that its consumer sentiment index was unchanged at -0.3 points. The reading compared with a Reuters forecast for 1.0. Oil rose towards $75 a barrel ahead of an industry report expected to show U.S. crude inventories dropped more than expected, bringing the focus back to a tight supply and demand balance rather than rising coronavirus infections.

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Abhishek Goenka

IFA Global

Mr. Abhishek Goenka is the Founder and CEO of IFA Global. He pilots the IFA Global strategic direction with a focus on relentlessly improving the existing offerings while constantly searching for the next generation of business excellence.

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