India Rupee Traded Lower As Virus Scare Dents Risk Assets

India Rupee Traded Lower As Virus Scare Dents Risk Assets

28 Feb 2020 05:20 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee slipped against the dollar this month amid a broad decline in Asian currencies and equities, on growing alarm over the spread of the coronavirus beyond China and across the globe.
  • The rupee was at 72.18 to the dollar at 5:00 p.m. today, against 71.55 yesterday. The unit had declined to 72.27, its lowest level in nearly six months amid aggressive dollar purchases from foreign banks. The currency fell 1.2% this month, its biggest fall since August, after remaining broadly steady in January.

Indian Equities

  • The 30-share Sensex closed 3.64 percent or 1,448.37 points lower at 38,297, while the 50-share Nifty slumped 3.56 percent or 414 points to close at 11,219. For the week, the indices have shed 6.98 percent and 7.28 percent, respectively.
  • Teck, basic materials, energy were among other top sectoral losers, down 5.07 percent, 4.60 percent and 3.79 percent, respectively.

Global Markets

  • Asian markets finished sharply lower today with shares in China leading the region. The Shanghai Composite is down 3.71% while Japan's Nikkei 225 is off 3.67% and Hong Kong's Hang Seng is lower by 2.42%.
  • European markets are sharply lower today with shares in Germany off the most. The DAX is down 3.86% while London's FTSE 100 is off 3.11% and France's CAC 40 is lower by 2.94%.
  • The appeal of guaranteed income sent high-grade bonds. U.S. yields plunging with the benchmark 10-year notes yield hitting a record low of 1.241%. It last stood at 1.247%.
  • Oil prices languished at their lowest in more than a year has plunged 12% this week. Brent was last seen trading at $51.01 down 1.17%.