Indian Rupee Traded Lower Dragged By Foreign Bank's Dollar Purchases

Indian Rupee Traded Lower Dragged By Foreign Bank's Dollar Purchases

06 Nov 2020 01:32 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee was trading lower at 74.10/74.11 compared to 74.39/74.40 in the previous session, as foreign banks’ dollar purchases overshadowed an early rise stimulated by gains in Asian currencies and a broad dollar decline.
  • The benchmark 5.77% bond maturing in 2030 was trading 0.14% higher at 99.47 rupees, yielding 5.84%, compared to 99.33 rupees and 5.86% yield at the previous close, after RBI announced a 100 billion rupees of special OMO for next week. Traders now stay on a lookout for the result of the 290 billion rupees weekly debt sale.

Indian Equities

  • The benchmark BSE Sensex and NSE index traded up for the fifth straight day and were 0.88% and 0.77% higher, tracking upbeat Asian equities and driven by gains of Reliance Industries after it received more investments for its retail division.
  • Financials HDFC Bank and HDFC were among the top gainers.

 Global Markets

  • Most Asian markets were mixed Friday after the week’s strong gains but traders remained upbeat as the chances of Joe Biden winning the US election increased and after the Federal Reserve indicated it could provide further economic support. Japan's Nikkei average rose 0.9% to a 29-year high while MSCI's broadest gauge of Asian Pacific shares outside Japan rose 0.3% near 3-year high.
  • European stocks lost some of their big gains from this week with Euro Stoxx 50 futures down 0.8% and FTSE futures falling 0.5% as investors await the outcome of the U.S. election and react to rising coronavirus cases and new restrictions across the continent.
  • S. S&P futures dropped 0.7%, a day after the underlying stock index rose 1.95%. Dow futures edged lower on Friday, but Wall Street is still on course for its best week since April. The Federal Reserve kept its monetary policy loose and pledged to do whatever it takes to sustain a U.S. economic recovery.
  • Oil prices were sluggish as new lockdowns in Europe weighed down on the outlook for crude demand. Brent crude was down 1.73% at $40.22 a barrel.