Rupee Came Off Highs On Consistent Greenback Purchases By State Run Banks

Rupee Came Off Highs On Consistent Greenback Purchases By State Run Banks

03 Jun 2020 02:10 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee came off highs and was at 75.37/75.38 to the dollar against 75.3625/75.3725 in the previous session, on consistent greenback purchases by state-run banks, likely on behalf of the Reserve Bank of India.
  • The benchmark 6.45% bond maturing in 2029 was at 103.04 rupees, yielding 6.02%, against 103.19 rupees and 6.00% yield at the previous close, as investors awaited fresh triggers and steps from the central bank to improve market sentiment.

Indian Equities

  • Indian equity benchmark Sensex was 414 points (1.2%) higher at 13:19, while the broader Nifty 50 index was +1.33% higher.
  • Banking, Real Estate, and Finance stocks led the gains today, while some selling was seen in Technology and Media, IT, and Telco stocks.

Global Markets

  • In China, Japan and South Korea, where COVID-19 is relatively contained, stock indexes have recovered substantially to be only about 5-6% below this year's peaks.
  • MSCI's main European Index also held near three-month highs and European bourses opened higher, with the STOXX 600 up over 1% and back to levels not seen since March 6.
  • The 30-year U.S. Treasuries yield rose to as high as 1.532%, its highest since mid-March, as expectations of central bank policy support kept shorter yields in check.
  • Brent crude futures for August were up around 1.8% at $40.27 a barrel. U.S. West Texas Intermediate (WTI) crude futures gained $0.92, or 2.5%, to $37.73 a barrel, the highest since March 6.