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MONDAY - RUPEE FIRM , DOLLAR SLIP ON TRUMP HEALTH !!

On Monday - Rupee likely to commence trading with mild weaker note despite greenback down on early morning in Asia, with investors awaiting updates on U.S. President Donald Trump’s health after he and his wife Melania Trump tested positive for COVID-19 during the previous week.

  • On Thursday Domestic Unit (Rupee) appreciated by 60 pips (0.82%) - to end at 73.15/16 against the greenback, a day after the government allowed states to reopen movie theatres at 50% capacity. It moved in a range of 60 pips, between 73.02 and 73.62, during the four-hour session, before registering its highest close since September 2. Weakness in the dollar overseas and sharp gains in domestic equity markets supported the rupee.

  • Domestic share markets moved more than 1% per cent higher on Thursday. The S&P BSE Sensex index jumped 635.78 points (1.67%) - to touch 38,703.71 at the strongest level of the day, and the broader NSE Nifty 50 benchmark climbed to as high as 11,423.50, up 175.95 (1.56%) from its previous close.

  • The country's current account surplus rose to a record $19.8 billion in April-June as its trade deficit narrowed sharply, Reserve Bank of India data showed on Wednesday. That followed its first surplus in 13 years, registered in the previous quarter.

INTRADAY RANGE - 72.42 ( 72.95 - 73.53 ) 73.78


GLOBAL OUTLOOK

  • Trump’s diagnosis adds further uncertainty and volatility to his campaign to be re-elected in the Nov. 3 presidential election against Democrat nominee Joe Biden, who has tested negative for the virus.

  • Oil prices rose more than 1% on Monday, lifted by comments from doctors for U.S. President Donald Trump suggesting he could be discharged from hospital as soon as Monday.

  • European Union (EU) are entering the final round of Brexit negotiations, with U.K. Prime Minister Boris Johnson and European Commission president Ursula von der Leyen, agreeing on ‘intensified’ talks over a phone call on Saturday. Johnson added on Sunday that although he wished to reach a trade deal with the EU ahead of the transition period’s expiry in December, a no-deal Brexit is an outcome that the U.K. could accept.

  • Japan's services sector contracted for the eighth straight month in September but at the slowest pace since the coronavirus pandemic started wreaking havoc on the economy, a private business survey showed on Monday, in a sign that demand is starting to steady.

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