Indian Rupee Closed Lower Amid Rising Dollar And US Yields

Indian Rupee Closed Lower Amid Rising Dollar And US Yields

05 Mar 2021 04:49 PM

Financial Market Overview

Indian Rupee

  • Indian rupee closed lower at 73.01/73.02 compared to 72.83/72.84 in the previous session, amid a rising Dollar index due to weak risk appetite and rising US yields. Rupee gained 0.6% for the week, its biggest weekly rise in 5 months.
  • The benchmark 5.85% bond maturing in 2030 closed lower at 97.23 rupees, yielding 6.23%, compared to 97.37 rupees and 6.21% yield at previous close, after the RBI devolved three notes on primary dealers at today's weekly debt auction. Rising US yields and crude prices also added pressure.

Indian Equities

  • The benchmark BSE Sensex fell 0.87% and the NSE index was 0.95% lower amid weak risk sentiment after Federal Reserve Chair Jerome Powell’s comments were unsuccessful in calming worried over rising US bond yields. The Sensex and the Nifty were up 2.7% and 2.8%, respectively, this week.
  • HDFC Bank, ICICI Bank and HDFC were among the top losers.

Global Markets

  • Asian markets closed lower with shares in Hong Kong leading the region. The Hang Seng fell 0.47% while Japan's Nikkei 225 was off 0.23% and China's Shanghai Composite was lower by 0.04%.
  • European markets are trading mixed. The FTSE 100 is up by 0.20%, while the DAX is leading the CAC 40 lower. They both fell 0.72% and 0.53% respectively.
  • On the Wall Street, Dow Jones Industrial Average futures are indicating an open of 45 points lower, S&P 500 futures are priced for a 45 point pullback while the Nasdaq futures indicate a down move of 40 points.
  • WTI contracts rose $1.25 at $65.10 per barrel while Brent futures were up $1.46 to $68.20 per barrel.