India Rupee Trades At 6-Month Low, Likely RBI Intervention Limits Fall

India Rupee Trades At 6-Month Low, Likely RBI Intervention Limits Fall

28 Feb 2020 01:29 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee tumbled to its lowest level in six months and was at 72.10/72.11 per dollar, against 71.55/71.56 at 5.00 p.m. yesterday, on aggressive dollar purchases by some foreign banks, while other currencies, as well as Asian equities, continue to slump.
  • The benchmark 6.45% bond maturing in 2029 was at 100.35 rupees, yielding 6.40%, against 100.50 rupees and 6.38% yield at the previous close, as traders continued to cut long positions after the rupee fell to a six-month low. Investors await October-December domestic growth data.

Indian Equities

  • The S&P BSE Sensex index nosedived as much as 1,342.13 points to hit 38,403.53 afternoon, and the broader NSE Nifty benchmark plunged to as low as 11,233.95, dropping 399.35 points from the previous close.
  • A selloff across sectors continued to hurt the markets lower for the sixth session in a row, with banking, automobile, metal, and oil & gas shares being the worst hit.

Global Markets

  • In Asia, MSCI's regional index excluding Japan shed 2.7%. Japan's Nikkei slumped 4.3% on rising fears the Olympics planned in July-August may be called off due to the coronavirus.
  • EUROSTOXX 50 futures down 4%, DAX futures down 4.3%, CAC 40 futures down 4%, FTSE futures down 3.6%, IBEX futures down 3.4%.
  • Investors flocked to the safety of high-grade bonds. U.S. yields plunged with the benchmark 10-year notes yield hitting a record low of 1.241%. It last stood at 1.247%.
  • Brent was last seen trading at $50.86 per barrel down 1.35%. U.S. crude futures fell 3.2% to $45.59 per barrel, having lost 14.5% so far on the week, which would be the deepest fall in nearly nine years.