Rupee slips in NDF market amid US election updates
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The Indian rupee declined in the non-deliverable forward market, bogged down by a jump in the dollar index and weakness in Asian peers amid U.S. election updates.
The 1-month USD/INR non-deliverable forward was quoted at 84.28/84.32. If these levels were to hold, then the rupee would open at around 84.18, compared to 84.1075 on Tuesday and past its all-time low of 84.1275.
The dollar strengthened across the board amid U.S. election updates, which showed Republican candidate Donald Trump ahead of Democratic candidate Kamala Harris. The dollar index climbed 0.84% to 104.24 while the Thai baht, the Korean won and the onshore Chinese yuan were down between 0.5% to 0.8%.
These three Asian currencies were considered by analysts to be among the most vulnerable to Trump winning the election.
"Dollar is doing well, U.S. yields are on the rise and U.S. equity futures are up. Traders are getting into Trump trades based on what the U.S. election results are so far," a Singapore-based hedge fund portfolio manager said.
The 10-year U.S. Treasury yield was up 10 basis points at 4.38%. U.S. equity futures were up nearly 1%.
In the betting market, the odds of a Trump win had climbed to 2-in-3.
