Washington: Currency and equity markets remained volatile as the US Presidential race was closer than predicted, leaving the result in doubt for days.
Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services, said: “After opening lower, the rupee traded in a narrow range against the US dollar, but the volatility within the range remained high. Market participants are cautious as early results suggest that the US Presidential election proved far closer than polls had predicted potentially leaving the outcome in doubt for days or weeks.
“Volatility for the dollar is expected to remain high also as focus will be on the FOMC policy statement that will be released later this week. For the next couple of sessions, we expect the rupee to trade with a negative bias and quote in the range of 74.40 and 75.20.”
David A. Meier, Economist, Julius Baer said: “In a tight race, the US Presidential elections are not yet decided. The candidates have won their ‘must-have’ states and (President Donald) Trump is looking strong in having won toss-up states Florida and Texas. The vote will be decided in the swing states Michigan, Pennsylvania and Wisconsin, where the counting of early voting by mail could still stretch beyond today, opening the door for potential controversies.”
