India’s Rupee slides against the greenback and snaps a four day losing streak tracking the movement of other emerging market currencies. At the foreign exchange market, the value of Rupee depreciated by 21 paise settling down 0.29% at 71.20 against the US dollar. However, the USD/INR exchange rate was seen trading on Tuesday within a trading range of 70.98 and 71.23.
The International Monetary Fund (IMF) on Monday lowered India’s GDP growth to 4.8% for fiscal year 2019. As a result the INR weakened every day this week on the back of low risk appetite. In terms of scheduled risk events, currency traders are left with restraint economic data that can drive risk trends.
In other news, the US – France trade war de-escalation has failed to improve the risk appetite. The US President Donald Trump and French President Emmanuel Macron agreed to hold off on the new tariff increase in French goods ($2.4 billion worth of products).
The deadly virus outbreak in mainland China and the growing fears that the virus can spread to the USA have prompted investors to sell equities breaking a five-day win streak in the US stock indices.
The dollar index currencies settled unchanged at 97.61.
Elsewhere, foreign institutional investors (FIIS) were net sellers of shares in the local equity market worth Rs -50.08 crore; according to the National Stock Exchange of India data published at the end of Monday’s trading session. At the same time, Domestic Institutional Investors (DIIs) were net sellers of equities worth Rs -307.81 crore.
The domestic benchmark equity index NIFTY 50 inched lower for two consecutive days on Tuesday and settled down -0.45% at 12,169.85. However, during early Asia trading hours on Wednesday, NIFTY 50 traded lower at 12,137.60 being on track to post its third consecutive day of losses.
The Indian 10-year government bond yield was seen quoted at 6.64% in morning trade compared with its previous close of 6.64%.
At the currency market, one US dollar buys 71.11 Rupees, down -0.11% as of 7:55 AM UTC.