Rupee: Rupee recovers from all times low, up to 8 paise

The rupee rallied slightly after closing at record lows to end at 8.87 against the US dollar, recording mostly gains in major Asian units in a weak dollar environment. # 39; abroad.

Domestic stock markets also benefited from a good weekend.

The result of the latest FOMC minutes and the release of better-than-expected non-US ISM manufacturing PMI figures have had little impact on the national currency as investors prepared for a potential rise in interest rates in the US. short term.

However, the rupee briefly slipped below 69 levels in mid-morning deals, but managed to recover losses on the apparent intervention of the Reserve Bank, coupled with ticket sales green by exporters.

The Indian rupee reached a record low of 68.95 on Thursday, following a panic demand for the US dollar coupled with worries about a flight of wild capital.

Meanwhile, fears of a slowdown in the country's economy amid soaring international crude oil prices and worsening current account deficits have mostly maintained the Forex feeling very nervous.

In the meantime, the latest minutes of the June FOMC meeting have shown that policymakers remain wary of intensifying trade disputes, but are still on the path to a tightening cycle. progressive monetary policy.

The disturbing development of escalating trade disputes between the world's two largest economic powers with the latest salvo of the US president has been weighed heavily on the currency and global financial markets with investors waiting for the next developments.

The answer among the major currencies, however, was rather limited.

The Chinese government immediately retaliated against US President Donald Trump's $ 34 billion tariff package with a set of simultaneous countermeasures and accused Washington of triggering "the biggest trade war in history" .

On the interbank foreign exchange market (forex), the local currency resumed trading at 68.88 after closing the night at 68.95 on new dollar sales by banks.

He gained ground again to reach a high of 68.81 before retreating.

After falling to an intraday trough of 69.04, its lowest since June 28, the local unit is gradually rebounding to fagot trading to settle at 68.87, revealing a modest gain of 8, or 0.12%.

However, for the week, the rupee is still depreciated by 41 points against the US dollar.

On the energy front, crude oil prices slid below $ 77 per barrel, under pressure from Saudi production and trade tensions between the United States and China, although the ruptures oil supply supported.

The largest exporter, Saudi Arabia, told OPEC that it had increased oil production by nearly 500,000 barrels a day last month, a sign that Riyadh wants to offset shortages elsewhere and curb prices.

Brent crude, the world benchmark, fell more than 1% to USD 76.71 a barrel in Asian trade.

The RBI, on the other hand, fixed the reference rate for the dollar at 68.7545 and for the euro at 80.4771.

The domestic bond market also experienced a recovery trend and the 10-year benchmark yield fell from 7.90% to 7.87%.

Overall, the dollar weakened with the entry into force of US tariffs on Chinese imports, but a mixed response in the currency markets suggested that escalation had been largely taken in account by investors.

The dollar index, which measures the value of the greenback versus the basket of the six major currencies, is down to 93.84.

In the cross-currency trade, the rupee regained lost ground against the pound sterling to close at 91.13 per pound against 91.39 and also recovered against the Japanese yen to finish at 62.27 per 100 yen against 62.33 previously.

He however remained under pressure against the euro to close at 80.69 against 80.64.

Elsewhere, the euro hit several weeks highs against the greenback, thanks to strong German industrial orders and signs that Washington had relaxed its commercial rhetoric towards European automakers. .

The pound sterling trades little against the US dollar before the key report on non-farm payrolls in the United States.

In the futures market today, premium to continue to drift due to the consistent receipt of exporters.

In today's futures market, the six-month reference term premium payable in November fell to 116.50-118.50 from 120-122 paise and the advanced contract from May 2019 went from 268-270 give it to 265-267 paise.