Rupee Snapped a Two-Day Fall As Dollar Index Crashed to Multi-Year Lows

Rupee Snapped a Two-Day Fall As Dollar Index Crashed to Multi-Year Lows

04 Dec 2020 04:56 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee broke a two-day fall and was at 73.7975/73.8075 to the U.S. currency, against last close of 73.90/73.91, tracking gains in regional peers on the back of a further fall in the dollar index to fresh multi-year lows. The rupee rose 0.3% this week, marking its third consecutive weekly rise.
  • The benchmark 5.77% bond maturing in 2030 ended up at 99.06 rupees, yielding 5.90%, against 98.81 rupees, yielding 5.93%, at the last close, as status quo on rates was maintained by central bank. However, no steps were taken to withdraw liquidity from the banking system liquidity surplus. The benchmark bond yield marked its biggest single session fall since Oct. 23 by falling one basis point this week.

Indian Equities

  • The broader NSE index and the benchmark BSE Sensex ended at record highs and gained 0.95% and 1%, respectively, after the RBI MPC maintained status quo on policy rates, and lowered the country’s economic contraction forecast.
  • ICICI Bank, Bharti Airtel and Hindustan Unilever led the gains. This marked fifth consecutive week of gains.

Global Markets

  • Asian shares hit their own record high overnight. MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.82%, surpassing its Nov. 25 high, tracking gains in the tech sector. On profit-taking, Japan's Nikkei dipped 0.22%.
  • Britain's FTSE 100 index touched nine-month highs and euro zone stocks were at similar levels. German government bond yields which move inversely to price – fell to a three-day low of -0.557%.
  • U.S. S&P 500 future gained 0.19% in early Friday trade.
  • Brent crude was up $49.92 per barrel, its highest price since early March, and last stood at $49.64, up 1.9%. WTI traded 58 cents higher at $46.22 per barrel.