The Indian Rupee slides in opening trade on Monday as coronavirous outbreak worsens knocking risk adverse currencies. At the currency market, the value of Rupee depreciated by 19 paise settling down -0.27% at 71.43 against the US dollar. However, the USD/INR exchange rate was seen trading within a trading range of 71.09 and 71.49.
The risk aversion sentiment continued to weigh on the Rupee and the local stock market. The risk-off tone was felt even on Wall Street, with the US equities tanking lower registering the worst daily losses since October 2019. Dow Jones Industrial Average tumbled 453.93 points, or 1.6% and settled at 28,535.80. The DJIA turned negative for the year after coronavirus death toll on US soil rises to five.
The safe haven assets benefited from the risk-off sentiment. The precious metal Gold settled 0.66% higher at $1,581.80 per ounce.
“The outbreak of the coronavirus has turned into the catalyst for the correction in risk assets,” said Mark McCormick, global head of FX strategy at TD Securities – citing Reuters.
The dollar index benefited from the save haven flow and settled up 0.05% at 97.93. However, the gains were limited as currency traders are bracing for the Fed interest rate decision.
Elsewhere, foreign institutional investors (FIIS) were net sellers of shares in the local equity market worth Rs -438.85 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 (DIIs) were net buyers of equities worth Rs 10.51 crore.
The domestic benchmark equity index NIFTY 50 gaped lower on Monday and settled down -1.06% at 12,119.00. However, during early Asia trading hours on Tuesday, NIFTY 50 was seen quoted at 12,133.25.
The Indian 10-year government bond yield was seen quoted at 6.58% in morning trade compared with its previous close of 6.56%.
Currently, at the interbank market, one US dollar buys 71.24 Rupees, down 0.27% as of 8:03 AM UTC.
