The Indian rupee closed stronger than its opening at 73.93 which also was its low but continues to be under pressure as concerns regarding spike in COVID-19 cases in the US and Europe dented hopes of steady economic recovery across the globe. Moreover, a deadlock over stimulus package in the US to support struggling economy hit by the pandemic also weighed on investors' appetite for riskier assets. Foreign banks may sell the greenback, likely on behalf of foreign portfolio investors who may purchase Indian equities after a likely weight increase by global index company MSCI Inc. Further, US House of Representatives Speaker Nancy Pelosi is reportedly hopeful that Democrats and the President Donald Trump administration may reach an agreement on a coronavirus relief legislation before the presidential elections next week.......
Most currencies were steady against the US dollar in early trade today. A rise in number of coronavirus cases in the US and Europe fuelled risk aversion and preference for the US dollar but uncertainty about US elections and low real yields capped rise in the greenback.US Treasury yields settled lower on Monday because a sharp rise in the number of coronavirus cases in the US and Europe fuelled worries about global economic recovery.The yield on the 10-year US Treasury note settled 4 basis points lower at 0.81% on Monday. US, Russia, and France saw the highest number of COVID-19 cases on Monday since the pandemic began. Even though US elections are on Nov 3, around 60 mln people have reportedly chosen to vote early by mailing in their votes or doing so in person. Some people expect the result of the elections to only be declared a few days after Nov 3 because of the exceptional circumstances this year. Uncertainty about the US elections has also fuelled risk aversion among traders.......