Prime Minister Boris Johnson’s Conservative Party was set for a resounding victory in Britain’s election, allowing him to deliver Brexit on Jan. 31 in what would be the country’s most significant geopolitical move in 70 years. The pound rose to a three-and-a-half year high versus the euro and the highest in more than a year versus the dollar after a majority win for the Conservatives, which should help ensure the UK\'s smooth exit from the European Union. Reuters quoted that the United States and China have agreed to some tariff reductions and a delay on tariffs set to go effect on Dec. 15. Avoiding new tariffs should also be a boost to China\'s slowing economy, which should draw more investors to the yuan. In currencies today, the yen fell to 109.595 its weakest since Dec. 2 against the dollar. The pound surged by 2.2% to $1.3474, reaching the highest since May 2018 while the Euro rose to $1.1171 versus the dollar and the Chinese Yuan gained handsomely and is currently trading at 6.9748 in the onshore market. The Indian Rupee opened stronger with a huge gap of almost 29 paisa at 70.54/55 against its previous session’s close of 70.83/84 and is expected to trade between 70.40 - 70.90 ranges today as trade optimism lifts Asian peers. RBI movements to be watched.
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