Rupee in Monday's trade (July 20, 2020) opens higher at 74.93 versus previous close of 75.02 per US dollar. Dollar has been trading at an over 1-month low. The rupee appreciation is also being supported by trade surplus which has been reported for the first time in 18 years.
But this trade surplus points to another danger for the Indian economy, with likely contraction in double digits for Fy21.
In a note published on 15 July, Teresa John, economist at Nirmal Bang Securities Ltd, said trade surpluses in India have usually not lasted more than a month. But going by the trade surplus in June, India is set for a second straight quarter of current account surplus for the Q1FY21. And this would lend some support to the Indian rupee, the note said.
Bond yield in today's trade stood at 5.805%
Oil prices in today's trade were again trending lower as coronavirus related demand concern continued unabated across regions. The oil prices are now trending close to $40 per barrel levels.
As we write corona cases in India have topped 1100000 mark with a fresh jump in cases of nearly 40000.
Meanwhile Indian indices are trending higher with Nifty hitting 11000 mark and Sensex at 37360 points.