Rupee Closed Lower As Global Risk Sentiment Weakened

Rupee Closed Lower As Global Risk Sentiment Weakened

22 May 2020 04:29 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee was at 75.95/75.96 to the dollar at 2:00 p.m. against 75.6050/75.6150 in the previous session as global risk sentiment weakened amid mounting tensions between the U.S. and China, while an interest rate cut by the country’s rate-setting panel also weighed. The unit fell 0.5% this week.
  • The benchmark 6.45% bond maturing in 2029 ended at 103.46 rupees, the highest since its issuance on Oct. 4, yielding 5.96%, the lowest since Jan. 23, 2009, against 102.94 rupees and 6.03% yield at the previous close, after the country’s rate-setting panel in a surprise move today slashed the key policy rate by 40 basis points, while sticking to its accommodative stance.

Indian Equities

  • The benchmark BSE Sensex and the broader NSE index ended 0.84% and 0.74% lower, respectively, despite the nation's Monetary Policy Committee cutting the key repo rate by 40 basis points to a record low of 4%.
  • Financial stocks HDFC, HDFC Bank and ICICI Bank led the losses in local equities. The Sensex fell 1.2% this week.

Global Markets

  • Asian markets finished broadly lower today with shares in Hong Kong leading the region. The Hang Seng is down 5.57% while China's Shanghai Composite is off 1.89% and Japan's Nikkei 225 is lower by 0.80%.
  • European markets are lower today with shares in London off the most. The FTSE 100 is down 0.97% while Germany's DAX is off 0.31% and France's CAC 40 is lower by 0.05%.
  • Brent crude fell more than 4% to $34.47 a barrel, West Texas Intermediate (WTI) crude dropped 5.6% to $32.03.
  • Benchmark 10-year U.S. Treasury yields fell 4 basis points to 0.64%.