Rupee Off Highs Amid Foreign Banks’ Dollar Purchases

Rupee Off Highs Amid Foreign Banks’ Dollar Purchases

27 Mar 2020 01:09 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee was off highs at 74.76/74.77 to the dollar against 75.15/75.16 in the previous session, as foreign banks’ dollar purchases amid a retreat in local shares trimmed early gains due to a slide in the dollar index.
  • The benchmark 6.45% bond maturing in 2029 was higher at 102.69 rupees, yielding 6.07%, against 101.60 rupees and 6.22% yield at previous close, as the MPC slashed repo rate by 75 bps to a record low of 4.40%, along with cut in cash reserve ratio of banks by 100 bps. The benchmark yield had briefly fallen below 6% to its lowest level since January 2009.

Indian Equities

  • The S&P BSE Sensex, was down 25.85 points or 0.09% at 29,920.91. The Nifty 50 index was up 55.9 points or 0.65% at 8,697.35.
  • The broader market was positive. The S&P BSE Mid-Cap index was up 0.37% while the S&P BSE Small-Cap index was up 0.64%.

Global Markets

  • MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8%. Australian shares gave up gains to fall 4.55% after a strong week, but Japan's Nikkei rose 1.92%.
  • EUROSTOXX 50 futures down 0.5%, DAX futures down 0.6%, CAC 40 futures down 0.8%, FTSE futures down 1.2%, IBEX futures off 0.7%.
  • The yield on benchmark 10-year U.S Treasury notes fell in Asia to 0.7979%, while the two-year yield edged up to 0.2829%.
  • U.S. crude rose 2.04% to $23.06 a barrel. Brent crude rose 0.84% to $26.56 per barrel. Energy markets have been caught in a tug-of-war between hopes for stimulus spending and worries about excess oil supplies.