India’s domestic currency, Rupee witnessed a dramatic sell off against the greenback amid rising geopolitical tensions in the Middle East. At the end of the previous trading week the value of Rupee depreciates by 35 paise on the interbank market, and settled lower at 71.76 against the US dollar.
During the early Asia trading hours, the USD/INR exchange rate was seen quoted within a range of 71.76 – 72.17.
At the end of last week, the death of the most powerful Iranian commander by US airstrike had some reverberation through the foreign exchange market. The safe haven bids have been pushing the US dollar higher across the board, while the price of the precious metal Gold soars to 4 months high. The dollar index settled on Friday at 96.90.
Elsewhere, foreign institutional investors (FIIS) were net buyers of shares in the local equity market worth Rs 1263.05 crore; according to the National Stock Exchange of India data published at the end of Friday’s trading session. On the other hand, Domestic institutional investors were net sellers, dumping equities worth Rs -1029.2 crore.
Elsewhere, a report published by Deutsche Bank revealed that RBI’s easing efforts will help revive the sluggish economic growth in 2020. According to the same report, Indian economy is expected to grow to $7 trillion by 2030.
Moving forward, risk sensitive currencies and emerging market currencies might continue to feel the pressure amid escalating geopolitical tensions.
The domestic benchmark equity index NIFTY 50 traded near its all-time high and settled at 12,226 by the end of Friday’s trading session. During early Asia trading hours NIFTY 50 was seen quoted lower around the 12,015 level amid rising geopolitical tensions.
The Indian 10-year government bond yield was seen quoted at 6.56% in morning trade compared with its previous close of 6.52%.
