Bonds

Rupee hits 2-week high against US dollar as exit polls signal Modi win

Updated : May 20, 2019 09:08 AM IST

At 09:10 AM, the rupee was trading at 69.43 a dollar, up 80 paise from its Friday’s close of 70.23.

In debt markets, the yields on the 10-year government bonds were down 1.06 percent to 7.29 percent from its previous close of 7.36 percent.

Rupee hits 2-week high against US dollar as exit polls signal Modi win

The rupee jumped 80 paise to hit a 2-week high of 69.42 against the dollar on Monday on exit poll findings that the BJP-led National Democratic Alliance is set to win in 2019 general elections.

The News18-Ipsos exit poll showed NDA securing 336 seats beating the 82 seats by the Congress-led United Progressive Alliance, a coalition of opposition parties. The tally of the Congress, which won 44 seats in 2014 — its worst-ever electoral performance — is projected to reach 46 seats. The BJP, on the other hand, will score 276.

At 09:08 AM, the rupee was trading at 69.43 a dollar, up 80 paise from its Friday’s close of 70.23. The home currency opened at 69.42 and touched a high and a low of 69.36 and 69.43 a dollar, respectively.

The rupee, Asia’s top performer in March, has slid 1.6 percent this quarter as escalating trade tensions roiled global markets. Sentiment has been fragile as overseas investors have pulled more than $650 million combined from local shares and bonds this month.

In the currency market, the dollar added 0.2 percent against the yen to 110.30.

The dollar index against a basket of six currencies was largely steady at 97.970, having booked its biggest weekly rise since early March last week.

In commodity markets, oil prices gained after Saudi Arabia's energy minister said on Sunday that there was consensus among the members of the Organization of the Petroleum Exporting Countries to maintain production cuts to "gently" reduce inventories.

Both US crude and Brent crude jumped more than 1 percent following the minister's comments, with Brent crude at $73.05 per barrel.

Meanwhile, foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 953.23 crore Thursday, as per provisional data.

In debt markets, the yields on the 10-year government bonds were down 1.06 percent to 7.29 percent from its previous close of 7.36 percent. Bond yields and prices move in opposite directions.

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