- Forex reserves climb $2.518 bn to record $575.29 bn
- Rupee opens 10 paise higher against the US dollar
- Dollar poised for weekly losses on improving risk sentiment
- Rupee settles 3 paise higher at 73.88 against US dollar
- Rupee trades 6 paise higher against the US dollar
- Dollar losses put on hold but long-term outlook tilts to downside
- Why RBI needs to go slow on its record piling of forex reserves
- Rupee settles 10 paise higher at 73.91 against US dollar
The dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.32 per cent to 92.20.
Globally, risk-sensitive currencies gained on Tuesday as investors breathed easier after US President Donald Trump accepted the start of a transition to a Joe Biden administration, that is expected to include former Federal Reserve Chair Janet Yellen as Treasury secretary, Reuters reported.
AstraZeneca on Monday said that its vaccine could be about 90% effective and it will prepare to submit data to authorities around the world that have a framework for conditional or early approval.
London and Brussels this week continue their negotiations to agree a deal on their future trading relationship, though time is now running very short as Britain's post-Brexit transition period ends in fewer than six weeks.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.23 per cent to 92.17.
The Indian rupee opened at 74.11 against the US dollar compared with the previous close of 74.15.
In the reporting week, the jump in reserves was on account of an increase in foreign current assets (FCAs), a major component of the overall reserves.
The dollar's downward trend was interrupted late on Thursday when U.S. Treasury Secretary Steven Mnuchin called an end to some of the Federal Reserve's pandemic lending - news that also saw the dollar edge up in early London trading.
At the interbank forex market, the domestic unit opened at 74.15 against the US dollar and touched an intra-day high of 74.09 and a low of 74.21. It finally settled at 74.16 against the greenback, registering an increase of 11 paise over its previous close.
Traders said sustained foreign fund inflows into the domestic equity markets also helped the local unit.
"Investors have banked on the MLF (Municipal Liquidity Facility) being a reliable, emergency lender to our (municipal bond) market's core borrowers. It has taken the idea of a payment default or catastrophic budget problem off the table," said Matt Fabian, partner at Municipal Market Analytics at Westport, Connecticut, in the United States.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.33 per cent to 92.62.
On Wednesday, rupee had settled at 74.19 against the US dollar.
The dollar touched its lowest since early last week against a basket of currencies overnight and has ceded ground broadly, even with equity markets slipping, as mixed economic data underscored the fragility of the U.S. recovery. The dollar index is down about 0.2% for the week so far and, at 92.549, is less than 1% above a two-year low hit in September.
Forex traders said weakness in the US dollar against its key rivals and significant foreign fund inflows boosted investor sentiment.
Insiders say that in May and June many companies had to square off their treasury and equity investments and book losses, which cannot be set off against other gains.
"The US and countries across Europe are enforcing stricter measures to tackle the rising second wave of cases. This has stalled the global risk rally as of now. However, with progress on the vaccine front, there are no signs of panic as yet," said Abhishek Goenka, Founder and CEO, IFA Global.
The local unit finally closed at 74.46 against the US dollar, registering a gain of 16 paise over its previous close. On Friday, the rupee had settled at 74.62 against the US dollar.
"Global risk sentiment continues to remain positive. After Pfizer, Moderna's vaccine trials have yielded promising results (trials indicate it is 94.5 per cent effective in preventing Coronavirus and vaccine also does not need to be stored at ultra-low temperatures unlike Pfizer's)," said Abhishek Goenka, Founder and CEO, IFA Global.
After initially opening higher, the pound fell as investors focused on Brexit negotiations, which have failed to make progress on two key issues: competition rules and fishing.
Despite fears of a resurgence of global cases of COVID-19, investors remain hopeful a working vaccine could rescue the global economy, helping to fuel a rally in stock markets and a rebound in riskier currencies.
Russia reported 22,778 new coronavirus cases on Monday, a record daily rise, and 303 people died from the virus in the past 24 hours.
In the previous week which ended on October 30, the forex kitty stood at $560.715 billion after increasing by $183 million.
The local unit finally closed at 74.62 against the American currency, registering a rise of 2 paise over its previous close.
In the previous session, rupee fell sharply against the greenback ahead of the important inflation and industrial production number that were released later in the day.
The yen remains down by about 1.5% against the dollar this week, its sharpest weekly drop in five months, and softer on most crosses. But the bounce from its lows - along with softness in riskier currencies - shows plenty of caution still remains.
The local unit opened at 74.44 against the greenback at the interbank forex market and finally settled at 74.64 against the greenback, down 28 paise over its last close.
During the one-month period, the rupee lost a marginal 0.2 percent to the greenback marking itself as one of the worst performing Asian currencies.
In Asian trade, the dollar held broad gains as investors adjusted some of their bullish expectations about a Covid-19 vaccine, tempering a recent rally in risk assets but keeping enough confidence to support the greenback against other safe-havens, Reuters reported.
India’s currency rose from a two-month low last week ahead of U.S. election results to 74.3725 per dollar on Wednesday.
At the interbank foreign exchange market, the local currency opened on a weak note at 74.24 and swung between the day's high of 74.18 and low of 74.50 to the US dollar.
Stable foreign exchange reserves and a return to current-account surplus for the first time in five years, thanks to record remittances, have helped shore up the currency.
The dollar fell in Asian trade as optimism about a potential coronavirus vaccine was offset by worries about how the drug will be delivered and by a surge of new infections in the United States, Reuters reported.
The New Zealand dollar recovered from an early dip to hit its strongest level in more than a year after the Reserve Bank of New Zealand kept rates on hold as expected and the central bank governor made optimistic comments about the economy.
After strengthening in the past few sessions, the Indian unit came under pressure in the previous session on the back of short covering moves even as the domestic equities surged to record high levels.
The yen edged higher to 105.07 against the dollar, after suffering its biggest loss overnight since March. It fetched 76.42 against the Australian dollar, having lost more than 2% overnight.