Indian Rupee Closed Higher on Vaccine Hopes

Indian Rupee Closed Higher on Vaccine Hopes

15 Jul 2020 04:42 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee was at 75.1450/75.1550 to the dollar against 75.4150/75.4250 in the previous session, as early-stage trials on a likely vaccine rekindled hopes of a cure for the coronavirus and hurt demand for the safe-haven dollar.
  • The benchmark 5.79% bond maturing in 2030 ended at 99.80 rupees, yielding 5.82%, against 99.73 rupees and 5.83% yield at the previous close, on value-buying from traders after yields rose in the last two sessions.

Indian Equities

  • The NSE Nifty 50 index and the S&P BSE Sensex both fell from a session high of over 2% and ended with modest gains of 0.1% and 0.05%, respectively.
  • India's most valuable stock, Reliance, which was up 3.2% ahead of its AGM, erased all its gains and fell as much as 6.21% in the session.

Global Markets

  • Asia had a choppy session after more barbs between Beijing and Washington over Hong Kong. Chinese shares fell 1.3% and Hong Kong was flat, after U.S. President Donald Trump ordered an end to Hong Kong's special status under U.S. law to punish China for its "oppressive actions" against the former British colony. That prompted a retaliatory warning from China. Japan's Nikkei remained upbeat, though, finishing up 1.6%.
  • Near 1% gains for London, Frankfurt, Paris and Milan. Hopes for progress on the European Union's 750 billion-euro COVID recovery fund this week had the euro above $1.1430 for the first time since March. It also pushed down Italy and Spain's bond market borrowing costs.
  • E-mini futures for the S&P 500 were up 0.8%.
  • Brent crude futures were up 24 cents at $43.14 a barrel. U.S. crude futures rose 22 cents to $40.50 a barrel.