Rupee Ended Lower Weighed Down By Importers' Dollar Demand

Rupee Ended Lower Weighed Down By Importers' Dollar Demand

10 Jul 2020 04:45 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee was at 75.2000/75.2100 to the dollar against 74.9950/75.0050 in the previous session, weighed down by importers’ dollar demand and a weak global risk appetite. The unit fell 0.8% this week, its biggest weekly decline since the week ended Apr. 3.
  • The benchmark 5.79% bond maturing in 2030 ended at 100.21 rupees, yielding 5.76%, the lowest since May 28, against 100.12 rupees, yielding 5.77% at previous close, as strong bidding for the weekly debt sale boosted sentiment, while hopes of more special open market operations from the central bank further aided. The yield fell nine basis points this week, its biggest drop since week ended May 22.

Indian Equities

  • The Sensex fell 143 points to close at 36,594 and Nifty declined 45 points to close at 10,768.
  • Seven of 11 sector gauges compiled by the National Stock Exchange ended lower led Nifty PSU Bank index's 2.7 per cent fall. Bank, private bank, financial services, metal and media shares also faced selling pressure.

Global Markets

  • Asian markets finished sharply lower today with shares in China leading the region. The Shanghai Composite is down 1.95% while Hong Kong's Hang Seng is off 1.94% and Japan's Nikkei 225 is lower by 1.06%.
  • European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.47% while France's CAC 40 is up 0.37% and Germany's DAX is up 0.32%.
  • The dollar index, which measures the American currency’s strength against a basket of major currencies, was at 96.7910, up 0.09 per cent.
  • Brent crude oil futures fell by $1 to $41.35/bbl.