Indian Rupee Trading Lower As Regional Risk Appetite Weakened

Indian Rupee Trading Lower As Regional Risk Appetite Weakened

14 Jul 2020 01:24 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee was at 75.3025/75.3125 to the dollar against 75.1900/75.2000 in the previous session, as regional risk appetite weakened after U.S. imposed fresh restrictions to control the coronavirus outbreak, dampening hopes of a swift economic rebound.
  • The benchmark 5.79% bond maturing in 2030 was at 99.94 rupees, yielding 5.80%, against 100.02 rupees and a 5.79% yield at the previous close, as inflation rose above the central bank's upper tolerance level of 6% in June, hurting hopes of deep rate cuts.

Indian Equities

  • The broader NSE Nifty 50 index fell 0.68% at 10,729.75 by 09:15 am and the benchmark S&P BSE Sensex was down 0.74% at 36,423.79.
  • In Mumbai, banking and financial fell further after a Moody's report on Monday warned on COVID-19 related headwinds to Indian banking, which is already facing a high number of bad debt and a loan repayment moratorium which threatens to hurt revenue.

Global Markets

  • MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.2%. Japan's Nikkei retreated from a one-month high touched on Monday, dropping 0.9%, while Chinese stocks were down despite better-than-expected trade numbers.
  • EUROSTOXX 50 futures were down 1.8% in Asia and the FTSE futures 1.5%.
  • S&P 500 futures were flat after the index lost 0.9% on Monday. Meanwhile tension grew between the United States and China.
  • Oil prices, a proxy for global energy consumption and therefore growth expectations, reflected the growing worries. U.S crude futures fell 2.4% to $39.14 per barrel and Brent futures fell 2.1% to $41.81 per barrel.