Extending its winning streak for the fifth straight session, the rupee hit its three-week high in early trade on Tuesday ahead of the Economic Survey and Union Budget. The currency opened nearly 11 paise higher at 67.84 against dollar on sustained selling of American currency by banks and exporters.
Kuroda did put some flesh on those bones, however. He said that weak consumer prices last year led to inflation forecasts for 2017 and 2018 being unchanged today. He also reminded his audience that the BoJ sees prices hitting the 2% target around fiscal 2018. But he pointed out that we are still only halfway toward that level now. He also said that his fellow policy board members Takehiro Sato and Takehide Kiuchi didn’t think that long-sluggish prices would rouse themselves sufficiently to hit the target over this timeframe.
The dollar slipped against the yen on Tuesday, as the Japanese currency benefited from its safe-haven status, with the appetite for risk curbed by U.S. President Donald Trump’s hardening defence over his immigration policies.
The dollar was down 0.2 percent at 113.570 yen JPY= after dropping to as low as 113.240. It lost more than 1 percent overnight, when it was knocked off its perch above 115.000.
The latest blow against the dollar was initiated after Trump ordered a temporary ban over the weekend on the entry of refugees and people from seven Muslim-majority countries.
On Monday, the president fired acting U.S. Attorney General Sally Yates after she refused to defend Trump’s new travel restrictions. of the dollar appeared to have briefly gained momentum after Trump’s move, said a dealer at a Japanese bank.
The Bank of Japan’s well-anticipated decision to stand pat on monetary policy on Tuesday had little lasting impact, although the dollar did briefly rise above 113.700 following the announcement before drifting lower again. weakness started overnight, which is much more driven by U.S. policy. The BOJ’s no change decision resulted in a ‘continue on’ with the established direction,” said Bart Wakabayashi, head of Hong Kong FX sales at State Street Global Markets.
The rupee is seen to be better placed compared with other emerging market currencies as the Indian economy is less vulnerable to protectionist policies expected from US President Donald Trump.
After Trump’s election victory, the rupee has outperformed several emerging market currencies.
“The rupee continues to be a better performing currency and is at or above the median level of change in a set of 17 currencies. We believe that the rupee will be driven more by fundamentals than an external US shock. US policies are more likely to affect countries like Mexico and China, which may be expected in the next six months,” said Madan Sabnavis, chief economist, CARE.
Continuing its winning run for the third straight session, the rupee on Friday firmed up by another 4 paise to close at 68.03 against the US currency amid modest dollar selling by banks and exporters.
The domestic currency largely shrugged off the early volatility and staged a smart rebound towards the fag-end trade despite greenback’s bullish overseas sentiment.
The rupee opened 11 paise down at 68.18 against dollar on account of buying of American currency by banks and importers.
The BSE Sensex opened 52.89 points, or 0.19 per cent, up at 27,761, while NSE Nifty opened 7.75 points, or 0.09 per cent, up at 8,610.50. The local currency was trading 14 paise down at 68.21 against dollar around 9.15 am (IST).
The rupee on Wednesday settled 8 paise higher at 68.07 against dollar. According to ICICIdirect.com, the rupee ended on a slightly stronger note on Wednesday
JPYINR trading range for the day is 60-60.5. JPY gained as dollar dropped weighed by concerns about the early days of U.S. President Donald Trump’s administration that have so far been marred by protests.
Japan’s government retained its economic assessment, saying the economy is on a moderate recovery. The manufacturing sector in Japan continued to expand in January, and at a faster pace, the latest survey from Nikkei revealed with a PMI score of 52.8.