Indian Rupee Traded Little Changed As Dollar Sales Offset Rising Yields

Indian Rupee Traded Little Changed As Dollar Sales Offset Rising Yields

05 Mar 2021 01:13 PM

Financial Market Overview

Indian Rupee

  • Indian rupee was trading little changed at 72.84/72.85 compared to 72.83/72.84 in the previous session, as continuous dollar sales by foreign banks counterbalanced the influence of rising dollar.
  • The benchmark 5.85% bond maturing in 2030 was trading lower at 97.34 rupees, yielding 6.22%, compared to 97.37 rupees and 6.21% yield at previous close, amid surging US Treasury yields and crude oil prices. Traders anticipate the result of the weekly debt sale today for further cues.

Indian Equities

  • The benchmark BSE Sensex and the NSE index were down 0.31% and 0.39%, respectively, tracking Asian peers following Federal Reserve Chairman Jerome Powell’s dovish comments.
  • ICICI Bank, HDFC Bank and HDFC were among the top losers.

Global Markets

  • Asian markets recovered some of their losses from earlier. Japan's Nikkei 225 lost 0.2% to 28,864.32, while the Hang Seng in Hong Kong fell 0.1% to 29,211.63 and the Shanghai Composite index was 0.1% lower at 3,501.99
  • European markets are set to open lower as US yields continue to increase. Britain’s FTSE 100 is seen opening 47 points lower at 6,604, Germany’s DAX is expected to fall by 103 points to 13,983 and France’s CAC 40 is set to open 39 points lower at 5,792.
  • On Wall Street, the Nasdaq Composite fell 2.11% to 12,723.47, the S&P fell 1.34% to 3,768.47 and the Dow Jones Industrials lost 1.11% to 30,924.14.
  • US crude futures rose 82 cents to $64.65 while the Brent crude was up 88 cents to $67.62 a barrel.