Rupee Rose To A 3-Month High; Dollar Inflows Outweighed RBI's Likely Intervention

Rupee Rose To A 3-Month High; Dollar Inflows Outweighed RBI's Likely Intervention

03 Jul 2020 04:36 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee rose to a three-month high to the dollar and was at 74.63/74.64, versus 75.01/75.02 at the previous session, as speculative and corporate dollar flows outweighed the impact of central bank’s likely intervention in the spot market. The rupee rose 1.3% this week, its biggest weekly rise since the week ended May 1.
  • The benchmark 5.79% bond maturing in 2030 ended at 99.58 rupees, yielding 5.85%, against 99.61 rupees and 5.84% yield at the previous close, as concerns over excess debt supply were offset by hopes of supportive measures from the central bank. The yield fell six basis points this week.

Indian Equities

  • The Sensex ended 168.57 points - or 0.47 per cent - higher at 36,012.27, and the Nifty settled at 10,607.35, up 55.65 points - or 0.53 per cent - from its previous close.
  • Top gainers in the 50-scrip Nifty basket were Eicher Motors, Adani Ports, Bharti Airtel, Hero MotoCorp and NTPC, closing between 1.98 per cent and 4.18 per cent higher.

Global Markets

  • Asian markets finished broadly higher today with shares in China leading the region. The Shanghai Composite is up 2.01% while Hong Kong's Hang Seng is up 0.99% and Japan's Nikkei 225 is up 0.72%.
  • European markets are lower today with shares in London off the most. The FTSE 100 is down 0.97% while France's CAC 40 is off 0.95% and Germany's DAX is lower by 0.48%.
  • S&P 500 futures were down 0.2% but volumes were lower than usual due to a U.S. markets holiday on Friday for Independence Day.
  • Oil prices also eased after an otherwise solid week. Brent crude fell 0.65% to $42.86 a barrel while U.S. crude dropped 0.66% to $40.38 a barrel. Both were around $25 this time two months ago.